Everyone gets into business, self storage or otherwise, for the sole purpose of doing one thing—making money. They don’t just want to make a little; they want to make a lot. With the economy in the current state that it’s in, turning a profit has become more challenging. That is where a company called Vertical Consultants has come in handy for a number of self storage properties around the country.
Self storage facilities are often in great locations for cell phone towers. Many self storage facilities have been contracted by different mobile companies to place cell towers on the facility’s property. As it turns out, many of them have been grossly underpaid for years.
In the beginning of March the company announced that it was adding Clevengers Corner Self Storage, a Virginia-based self storage company, to its growing client list that now includes over 1,400 self storage facilities in over 40 states.
Clevengers Self Storage had been under contract with one of the larger cell tower operators in North America for some time. After Vertical Consultants reviewed the lease agreement that Clevengers had with the cell tower company it was discovered that one of their facilities had been underpaid for the last decade.
When Vertical Consultants was done it had recouped ten years of unpaid expenses, and added language into the lease to make sure that the cell company would be responsible going forward as well.
Hugh Odom, president of Vertical Consultants had this to say about why so many self storage facilities have not been paid properly by cell tower companies:
“The main reason is the lack of information a property owner has regarding their telecom tenant’s actual use of their property. The telecom companies strategically rely on this fact to evade the payment of expenses they are responsible for, in turn costing property owners across North America millions of dollars a year in unnecessary costs.”
In recent months, Vertical Consultants have discovered unpaid expenses by cell tower companies for a number of self storage providers. According to a story that broke in February 2012, the self storage facilities that Westwood Properties owned in Baltimore were found to be owed money from AT&T for expenses dating back to 2002.
SecureCare Self Storage, with the help of Vertical Consultants, discovered that Verizon was using space that they were not contractually allowed to use and were not paying for. Once negotiations were completed, the revenue from the cell towers increased by close to 200 percent.
“Most property owners believe that once they’ve signed a lease with one of these companies, the property’s ‘true value’ is simply the rent check they receive each month. Actually, that’s not the case at all,” Odum explained.
“Washington, D.C Area Self-Storage Facility Recovers Years of Unpaid Cell Tower Expenses.” Houston Chronicle; 05 April 2012.
“Vertical Consultants Adds Virginia Based Self-Storage Developer As Client — Vertical Consultants to Provide Counsel to Clevengers Corner Self-Storage, LLC.” Yahoo! News; 01 March 2012.
“Some Self Storage Companies are Making Money and They Didn’t Know It.” Self Storage Industry News; 14 February 2012.