Self storage vacancy question

[Mark Walker]

If SS has 95% physical occupancy and 74% economic occupancy does that mean they have 95-74= 21% delinquent tenants?

TIA

Mark Walker

[Henry Clark]

Nope.  Means they lowered the price to increase their physical occupancy.   Example 10x 10 normally $80.  They rented for $50.  

You still have the concern you mentioned.  Usually takes 3 years to cycle through customers till you get a base of good customers.  

So it’s good all you have to do is raise the price once their contract period ends.   It’s bad since you have to cycle thru bad customers.