How do I review a self-storage facility’s delinquent tenants and overlocked units?
Ask for an aged list of tenants who owe money, a list of every overlocked unit, and the notices sent for each. Compare them with the rent roll and bank deposits. Income that depends on tenants who never pay is not income you can count on.
Start with the rent roll and the arrears list side by side. For each late tenant, ask how long they have owed, what contact the manager has had, and what notices went out. Then look at the overlocked units. A unit locked for non-payment still has a tenant’s belongings in it, and the file should show the steps the operator followed.
Check whether the numbers agree. Do unit counts, rent roll and deposits tell one story? Is rent from locked units still counted as income? Ask what has been written off and how the books treat it. Your accountant can compare cash received with what the seller reports as rent.
Ask about the sale process too. How often does the facility sell or clear units, who handles it, and what happened to any proceeds? Disputes here can follow the facility to its new owner, so ask your lawyer how to protect yourself. Walk the property at different times and see whether locked units are visited, repaired or abandoned. Do not skip the mix of units. If late payers cluster in one size or one building, that may point to pricing or condition problems rather than bad luck, and it will shape how you plan to fill and manage the space.
Key takeaways
- Compare arrears, overlocked units and rent roll in one view.
- Ask for the notice file behind each overlocked unit.
- Have your lawyer address past tenant disputes in the agreement.
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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
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