guest blog by Nila Ridings
Lately, I’ve learned quite a lot about self-storage. It’s an interesting business where investors own steel structures with no plumbing, limited wiring, concrete slab flooring, and no overnight tenants. Generally speaking the square footage rents for far more than apartment rentals and the maintenance is amazingly less. The laws that protect those who rent these spaces are far more extensive and protective of the tenant than it is for the homeowner that buys into an HOA or COA. The process to cut the lock on a tenant’s unit and sell their contents to the highest bidder is closely adhered to. In addition, when it comes to taking bids for buy-outs the employees better closely adhere to the laws or find themselves in BIG TROUBLE for bid-rigging. (See below)
Much to my displeasure, I recently discovered this new concept called, ‘Garage Condos’ where you buy in and avoid paying monthly for self-storage. Yes, you pay monthly condo fees! There is a volunteer board of directors. They can foreclose for non-payment of dues. And once again, owners are clueless as to the risks. They see the fancy clubhouse, opportunity to customize their garage space, the scheduled social events, and never think twice about signing on the dotted line.
Just when we thought the condo world could not get any worse! Here’s just another way for buyers to take more risks for losing their life’s savings. I could write a list of all the ways I see this concept failing but I’ll let time expose the truth.
The sales representative I spoke with was very enthusiastic and excited to tell me these were already being built in California and Arizona. I’m so sorry they made their way to Kansas!
On the subject of bid-rigging…can somebody explain to me why the FTC has not been riding the backs of property managers, condo takeover investors, and HOA board members? Or have I missed something?