Two other types of inflation

Gas prices are hurting us all at the pump, but as a self storage owner or operator, have you considered how these other two types of inflation could be hurting your business?

Inflated GPI – Sure, street rates are at an all-time high which is wonderful for new tenants walking in the door or renting remotely. But what about existing tenants? If you continue to increase street rates (GPI or Gross Potential Income) but never touch your existing customer’s rates, all you are doing is creating a huge gap between expected income and GPI, or “inflated GPI”.

Inflated Occupancy – Occupancy is also at an all-time high. But what if your reports are deceiving you? They may show that you are 95% occupied, but you have 10 units over 90 days past due, 5 units in maintenance status, and 5 more units that are “company” units. That’s 20 units that could be bringing money in the door every month! So, your reported occupancy is actually “inflated occupancy”.

If you need help discovering if your property is suffering from inflation, please don’t hesitate to contact me at (706) 248-7400, or [email protected].?You can also visit cardinalconsulting.info for more information.