Moving out but having multiple units allows for steady cash flow lower operating expenses typically when you compare against apartments and retail shopping centers and office buildings self storage pueblo co on their expense side of.
things tend to be have lower operating expenses so their growth as a percentage of gross revenue typically the expenses run from thirty percent to forty five percent on the high end and I’ve seen expenses in the s believe.
It or not this is your owner operator that rents the unit’s himself he sweeps him out himself he fixes on them he mows the lawn and scoops the block and he then pays his bills and puts the rest in his pocket so in that scenario he’s going to have very low expenses if you look on the flip side of things I’ve seen facility owners.
That have really fat expenses and pull a lot of fees out of them and that’s how they operate so it’s just really dependent on the area and the property but banks like these self storage because typically like we talked about having lower operating expenses and steady cash flow they tend to have lower loan default histories as an asset class so that’s a good thing obviously they these are typically financeable month-to-month leases David touched on a little bit regarding why.
It’s a good to have a long-term lease but there’s also benefits self-storage having month-to-month leases with month month leases you can change the lease next month if you wanted to if you wanted to increase your rents you can you send out a letter and say rince going up if your property taxes get high from one year to the next you can pass that through to your tenants because you have a month-to-month lease dif you have a problem tenant that is driving you nuts you can send them a letter saying I’m terminating your lease.