L.A. Halts Rent Collection on Pandemic-Affected Self-Storage Tenants
Self-storage professionals are objecting to a new ordinance that prohibits storage facilities in Los Angeles, CA, from collecting rent and late fees from tenants who’ve been financially squeezed by the coronavirus pandemic.
Industry professionals complain that the ordinance wasn’t needed because self-storage operators in L.A. and elsewhere already were voluntarily helping tenants who’ve been unable to pay rent due to the pandemic. Jim Chiswell, a self-storage consultant in Leesburg, VA, who does business in California and 48 other states, said the L.A. law was “totally unnecessary.”
“It’s unfortunate,” Chiswell said. “It’s a knee-jerk reaction.”
‘Modest’ number of requests for relief
During the April 30 earnings call for Glendale, CA-based Public Storage, the country’s largest self-storage operator, Tom Boyle, senior vice president and chief financial officer, said the REIT had fielded a “relatively modest” number of requests for rent relief arising from the pandemic. “But we have a variety of different tools to work with customers impacted by this pandemic,” he said.