All Forum Posts by: Chris Gossett

I, too, am looking this route via commercial. We have a self storage facility with multiple apartments where we cover the electric (due to certain constraints). We signed a 5-year lock on our kWh rate in 2019 and renewal is coming up soon. At a minimum, we are looking at a kWh rate triple to what we have now. Given that ERCOT in Texas has also passed through fees to the providers, we have already experienced a bump in our bill, but will likely experience a much larger increase come renewal time - IE $350/month to $1,050 (not including pass through costs). This hits the ‘cash flow’. We have space amongst the large roof footprint that we currently have, but have not been able to decipher if we take the hit or if we bite the bullet by going solar for the commercial application. Hopefully more commercial operators within the forums have experience and can share their decisions.

@Aidan Richard Connly

Following. Are you more interested in LTR or STR using Tiny homes?

@Tessa M. Agreed with what @Joe Splitrock stated. To add to that, read the fine print in the lease. If the lease states No Pets, then the Tenant is in default. Any animal is deemed a Pet until proven otherwise. Typically, the Lease language also requires proper notification to the Landlord, and in this case, it does not sound like proper notification was given - which triggers another potential Default. In my experience, where it happens once, it’s highly possible something will happen again elsewhere, whether with a pet/ESA, late rent, etc. Set the tone early or be prepared to sit back and deal with the issues as they come. If you don’t mind dealing with the current situation, move forward with upfront expectations.

@Henry Clark Great Information. Thank you for your insight and suggestions.

@Henry Clark Enjoyed the post (2nd time Read). Always funny how you find things you may have skimmed over the first time (whether it be a book or a thread in this case). Pictures were a little difficult to see, but did I see correctly that your roof of the buildings were designed similar to a ‘leanto’/Shed as opposed to standard pitch? I believe you mentioned being able to get snow/water off the roof and to one side as opposed to the other. At what slope did you use for this (1:12,2:12, etc.) for 30’-40’ wide building?

@Henry Clark Regarding Construction costs, are these buildings built with Steel Framing? If so, do you install steel ‘poles’ in the ground around the perimeter (concrete in) and ‘frame to’ for a stronger structure or do you just use purlin and channel iron bolted to the concrete? Also, do you insulate any of the non-climate units? What about pitch of roof (2:12 vs 3:12)? I know you deal with more snow than we do down here in the Lonestar state (last year was the exception). Trying to evaluate our proposed addition and looking to find ways of cutting costs without compromising the integrity of the structure….

@Owen Schwaegerle We currently operate two systems at the moment. We use TenantCloud - which is one of the cheapest finds for what you get out of a cloud based system. You can operate a website through using a sub-domain and can easily track income/expenses, send invoice reminders, automate payments, etc.; however, we needed more, so we also operate through EasyStorage. It’s for small ‘mom and pop’ operations that allow you a few more options - such as SEO marketing, recurring bank drafts, etc. EasyStorage does not have an app which is a detractor of some sorts and TenantCloud does have an app - but this can be overlooked. It really is dependent on how ‘automated’ you want to be and what you need the software to do.

@Gary Ryan Herndon Unsure if the HML is the issue here or if you will run into the same issue with another lender. I'm not familiar with Georgia state laws, so someone more familiar with them should be able to help clarify, but here in Texas, the state constitution has Homestead protections. I had a similar issue come up. I sold a duplex - in which I lived in one side (signed a lease with new owner) and did not have any additional property to my name. I purchased a commercial property and held it for a couple of years and recently completed a Refinance; however, the trouble I ran into with every lender was the ‘Homestead' rule within constitution - NOT your property tax ‘Homestead' exemption via County Tax office. According to constitution, because the property was the only property in my name (not in LLC), I could potentially claim property as Homestead to shield myself from Bankruptcy in future. Lenders didn't like that, so no one would lend. We found a way to make it work, but either way, I was unaware of this particular issue. As mentioned, unsure what Georgia is like, but curious to know if Georgia has something similar in place where bankruptcy proceedings would impact the lender's ability to stake claim.

@Joe Miller Dependent on the your state, you should have the ability to attach an ‘Early Termination’ Addendum to the lease that allows the Tenant to terminate the lease for the fee of your choosing (one month’s rent, half month, etc.). We include this with every lease that we sign so that there isn’t a question of what is owed when notice is given or if tenant wants to terminate early. We feel it has given us the opportunity to provide the tenant with a little more ‘freedom’ in the lease in case life changes happen. We have been successful in collecting this fee since it was built in as part of the lease, but it is important to stress this document at the very beginning when signing the lease. We also make sure that the proper notice is given and that it falls at the end of the month - meaning if notice was given on the 5th of the month, the move-out has to occur at the end of the month following the 30 day notice. So, the tenants are still responsible for paying the month in which the gave notice and the next month - as well as the termination fee. You do get the occasional tenant that moves out on you in the middle of the night - but in that scenario, just forget it and move on. You will spend more time and energy trying to collect that fee when they are already gone and you have the opportunity to lease it.

@Travis Rogers Late joining this party. Curious to find out which avenue you took regarding financing and terms? To comment further, finding a great management software makes life easier. I tend to try and follow any self storage discussion @Henry Clark is a part of - the guy has a plethora of knowledge.