Insurance

citadel_storage

Is it worth the hassle to offer insurance to tenants? It sounds like more trouble than it's worth, especially because it is not required in NV. What kind of feedback did you get from tenants regarding additional charges when you implemented insurance?

MamaDuke7

Absolutely! The setup takes a little effort.  Once it's in place, it's super easy and brings in a fair amount of extra income.  I have implemented it at 4 properties over the years.

helenatim

I have implemented insurance at one of three facilities and it definitely brings in more revenue.  However, when I did it a couple of years ago, the setup was odious.  Having to get insurance info from every tenant who did not want to add coverage was a pain and that was at a facility of 200 units. I couldn't take it on for the 550 unit facility.  Maybe that has been fixed at this point.
Also, I have two facilities in areas that are not as wealthy and I would be worried that I would lose tenants over the added $10 cost and right now the goal is not to lose any tenants as opposed to maximizing revenue like two years ago.
I did not lose any tenants over the added charge but the hassle for tenants to send me their insurance info just was not worth it.  My website allows tenants to add coverage if they like but it is optional at this point.

citadel_storage

I am having similar concerns, as we are in a small rural area. We have just increased rent and I'm worried that the additional charge will drive tenants away and reduce our occupancy rate. We have just under 300 units. It's hard enough to get people to list an alternate contact on their rental agreement, I can't imagine how difficult/irritating it would be to have them take additional steps to add or remove insurance coverage.

GM_SJ_BSS

In CT, when we first opened we did not require it (even though it stated in the rental agreement that unit contents need to be insured).  By the 2nd year we decided to roll out Storsmart tenant insurance in phases, starting with the tenants that have been here the longest.  Not 1 person moved out over the insurance, especially because they have the option to use their own insurance if they don't want to pay the 9.00.  I will let them know that with tenant insurance offered through Stormart has no deductible if a claim had to be submitted, but homeowner/renters could have a deductible of $500 to $1000.   You'll probably get a lot of people say they don't need insurance the stuff isn't worth anything, my reply to them is, there must be some value or you wouldn't be putting it in storage. All tenants were insured within months.  Now all new move ins are not completed if the tenant refuses to provide or pay for insurance.  We will turn them away, but no one has walked out over it. If a tenant comes in claiming a leak, rodent damage, break-in, you'll be glad they have tenant insurance.  

AnitaJohnson1269

Same as @GM_SJ_BSS Storsmart sent out letters giving 30day notice to provide proof of coverage or be automatically enrolled in the minimum with the option of more. No move outs and only a few (5%) provided proof.  It's also in our lease, copy of coverage or storsmart,  or the "system won't let me continue". 

sonyawiprud

Yep, my company made it mandatory to take ours or provide their own, then the insurance rates went up at the same time as rate increases and they are moving out by the droves! Number one complaint is "first you raise the rent and then you raise the insurance!?"For some reason our company has decided that maintaining occupancy is not as important as revenue. I get the brunt of it now.