Understanding and Preventing Self-Storage Tenant Delinquency: A Guide for Facility Operators

By Michael Baillargeon, Chief Operating Officer

Tenant delinquency is a common challenge in the self-storage industry, directly impacting revenue and operational efficiency. Hearthfire’s COO, Michael Baillargeon, shares actionable insights for facility operators to mitigate this issue effectively in a recent article featured on Inside Self Storage. The article emphasizes understanding the causes of delinquency, from economic factors to personal circumstances, and implementing preventive strategies that benefit both the tenant and the operator.

Michael outlines key tactics, such as setting up automated payment reminders, offering flexible payment options, and fostering proactive communication with tenants. He also delves into the importance of a structured, tiered collections process and leveraging technology solutions, like tenant management software, to streamline tracking and interventions. By following these practices, facility operators can reduce the rate of delinquency, improve cash flow, and enhance the overall tenant experience, ensuring a stable and profitable operation.