How do I judge a storage facility’s climate-controlled and outdoor unit upkeep?
Inspect a sample of both kinds of unit yourself, then compare what you see with the upkeep records. For climate-controlled units, look at the heating, cooling and moisture systems and their service history. For outdoor units, check doors, roofs, drainage and the surface of the lot.
Walk the property as a customer would, then again as an inspector. Open a sample of units of each type. Look for damp, stains, rust, sticking doors and worn locks. Check that lighting and cameras work, and that the lot drains. What you notice in an hour is a decent clue to what has been put off.
For climate-controlled units, the systems matter most. Ask for service records on the heating, cooling and dehumidifying equipment, and ask when each was last replaced. A building that holds a steady temperature but relies on ageing equipment is a cost you inherit. Bring in a qualified inspector for the building and the equipment.
For outdoor units, think about weather and wear. Roofs, door tracks and fences take punishment. Ask what has been repaired and what is waiting. Check how the cost of upkeep shows up in the cash flow, and ask what the seller has set aside. Your accountant can look at the history of repairs against income, and your lawyer can review anything in the leases that affects the owner’s duties. Finally, ask tenants you meet on site what they like and dislike about their units, since people who rent them notice problems before the records do.
Key takeaways
- Open a sample of both unit types and look for damp, rust and worn doors.
- Ask for service records on climate equipment and when each was last replaced.
- Hire a qualified inspector for the building and systems.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is Cash Flow
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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