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251114 Poth Meeting Notes

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Added by

8x20 and 8x30 work add insulated and remove non climate verbiage

@Andrew Aue

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Fri, Nov 14

Push ECRI higher on 8x20 and 8x30 units

@Andrew Aue

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Fri, Nov 14

Separate RV Park in Cubby

@Ryan Dayhoff

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@Marketing Department

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Fri, Nov 14

Update Core Page for 8x20 and 8x30

@Ernest Gomez

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Fri, Nov 14

Checking on Pro Pics

@Marketing Department

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Fri, Nov 14

RV Park rate increases, steep

@Andrew Aue

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Fri, Nov 14

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Cubby

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https://app.cubbystorage.com/⁠

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username and password is your email address

Key Highlights – YTD 2025 (Jan–Oct)

Operations

Move-ins vs. Move-outs: 47 move-ins vs. 49 move-outs → net loss of 2 rentals.

Occupancy: Dropped from 78% to ~70% (partly due to 6 new units added in October).

Tenant Insurance: Excellent uptake at 98% (up from ~75% in January).

Delinquency >30 Days: Low most of the year, but ticked up to 3.3% in October.

Revenue Collected: ~$124,700 YTD, with most months generating $12k–14k.

Economic Occupancy: Averaging ~76%, improved slightly by October.

Financials (Jan–Sep Actuals vs. Budget)

Revenue: $106.8k actual vs. $105.1k budget → +1.6% ahead.

Expenses: $79.8k actual vs. $62.5k budget → ~28% over, mainly due to high repair costs.

NOI: $27.0k actual vs. $42.7k budget → ~37% below target.

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Key Takeaways

What’s Working: Revenue is slightly ahead of budget; insurance participation is excellent.

What Needs Attention: Occupancy has declined; expenses—especially maintenance—are significantly over budget and impacting NOI.

Next Steps: Focus on filling new/vacant units and controlling repair costs to improve profitability.

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Rate Increases

1) What’s scheduled for December

All scheduled rate changes in the file are set for December 1, 2025.

Count & scope

25 tenants have a Next Rate and Next Rate Start = 12/1/2025

All are Drive Up Access units.

Dollar impact (Dec 1 group)

Current (Actual) rate – avg: $84

Next rate – avg: $99.40

Average increase: +$15.40 per month

Range of increases: +$15 to +$20 per month

So: 25 drive-up tenants are all scheduled for a fairly tight, consistent increase band on 12/1/2025.

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2) YTD 2025 rate increases executed (through October)

I looked at tenants where:

Actual Rate Start is between 1/1/2025 and 10/31/2025, and

There is a Last Rate populated, and

Actual Rate > Last Rate (true ups, not decreases).

Overall YTD

61 tenants received a rate increase in that window.

Average increase: +$13.87

Median increase: +$12

Range: +$7 to +$23

By unit type

Drive Up Access:

60 tenants

Avg increase ≈ +$13.90 (range +$7 to +$23)

Parking:

1 tenant

Increase +$12

By month (based on Actual Rate Start)

Feb 2025: 5 tenants, avg increase +$7

Mar 2025: 11 tenants, avg increase ≈+$7.09

Apr 2025: 2 tenants, avg increase +$23 (larger step-ups)

Oct 2025: 43 tenants, avg increase ≈+$15.98

So the bulk of the YTD action is in October, with a noticeable cluster of more moderate increases, and a small April group with more aggressive jumps.

Reason for Move out Summary

Move-Out Reasons Summary (Jan 1 – Nov 12, 2025)

Table 4

Table 4

Reason

Count

No reason provided (blank)

Don’t need storage anymore

Auction

Vacated without notice

TEST (likely miscoded)

Unhappy with service

Moving

Consolidating units

Other

Transferring

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Key Takeaways

58 move-outs (largest group) had no reason entered, which suggests an operational opportunity: improving data collection for better trend analysis.

“Don’t need storage anymore” is the top stated reason — typical for RV/storage.

Auction and vacated-without-notice account for 10 move-outs combined—worth monitoring for delinquency trends.

Only 2 service-related complaints, which is relatively low.

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Marketing Insights

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Total Expense Overview (Jan–Sep 2025)

Actual: $79,791

Budget: $62,484

Over Budget: +$17,307 (~28%)

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Key Categories Driving the Overages

1. Repairs & Maintenance (R&M) – Major Issue

Actual: $13,231

Budget: $5,000

Overage: +$8,231

Issue: General maintenance spending was more than double the budget. Combined with landscaping (see below), total R&M-related costs far exceeded expectations. This suggests either unplanned repairs, deferred maintenance from prior years, or under-budgeting.

2. Yard Maintenance

Actual: $21,035

Budget: $6,300

Overage: +$14,735

Issue: Landscaping and exterior upkeep costs are over 3x budgeted levels. This alone accounts for ~85% of the entire expense overage YTD. It may include fence repairs, weed control, gravel work, or upgrades — worth investigating if one-time or recurring.

✅ Together, Repairs & Yard Maintenance account for ~$23,000 in overages, which is more than the total $17k budget variance — meaning savings in other areas weren’t enough to compensate.

3. Payroll Taxes

Actual: $4,023

Budget: $2,888

Overage: +$1,135

Issue: Slightly above budget, possibly due to wage increases or staffing adjustments.

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Offsetting Categories (Under Budget)

Some categories helped cushion the blow:

Utilities: $1,750 actual vs. $2,925 budget → $1,175 under

Advertising/Marketing: $2,011 actual vs. $3,150 budget → $1,139 under

Office Supplies: $1,277 actual vs. $2,100 budget → $823 under

But combined, these savings (~$3,100) were far less than the overages in maintenance.

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Monthly Trends & Standouts

April: High spike in yard maintenance – $7,475 for that month alone.

August: Repairs & Maintenance peaked at $4,168, suggesting a significant repair project.

May–Sep: Yard maintenance remained consistently high ($2,500–$3,200/month), vs. budgeted ~$700/month.

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Conclusion

The primary issue is overspending on exterior and general maintenance, particularly yard maintenance. It’s unclear whether this was due to unbudgeted projects, vendor rate hikes, or expanded scope of services — but it’s the biggest area to review and potentially control. April and August stand out as the most expensive months.

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Monthly_Expense_Breakdown

Monthly_Expense_Breakdown

Month

Repairs & Maintenance

Yard Maintenance

Payroll Taxes

Utilities

Advertising/Marketing

Jan

765

487.72

155.01

123.89

Feb

765

487.72

174.67

303.82

Mar

765

487.72

199.11

222.29

Apr

7,475

487.72

177.75

110.69

May

214.99

2,500

487.72

205.44

218.13

Jun

3,200

487.72

216.77

120.56

Jul

2,500

487.72

180.82

239.39

Aug

4,168.2

3,000

487.72

215.79

245.45

Sep

1,065

387.69

224.54

426.42

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Poth RV & Storage 2025 YTD Performance Update (Jan–Oct)

Operational Metrics Overview (Jan–Oct 2025)

Move-Ins & Move-Outs: Year-to-date, 47 move-ins were completed versus 49 move-outs, resulting in a net loss of 2 rentals. Occupancy started the year at 78% of units occupied and ended October at about 70%, reflecting this net decline. (Notably, facility capacity increased from 126 units to 132 units in October, which contributed to the lower occupancy percentage as new units came online unfilled.)

Leads & Conversion Rate: Leads data was not provided in the attachments, so an exact conversion rate (rentals achieved per lead) cannot be calculated. Given the slight drop in occupied units, it suggests that lead volume and/or conversion efficiency has not been sufficient to grow occupancy. Improving marketing funnel performance – either by generating more leads or converting a higher percentage to move-ins – may be needed to reverse the occupancy decline.

Net Rentals: Net rentals (move-ins minus move-outs) over Jan–Oct totaled -2, aligning with the small decrease in occupied units. Most months were balanced, but a few mid-year months saw higher move-outs (e.g. July had 8 move-outs vs 2 move-ins, net –6), which drove the overall negative net absorption.

Tenant Insurance (Protection Plan): Insurance attachment rates are excellent. According to the “Overall Protection %” metric, roughly 98% of tenants had insurance by October, up from around 75% at the start of the year. This nearly full adoption of tenant insurance is a very positive trend, ensuring protection for tenants and additional fee income for the facility.

Auto-Pay Enrollment: Auto-pay data was not provided in the attachments. If not already high, increasing the percentage of tenants on auto-pay is recommended, as it can improve on-time payments and reduce delinquency. (Given the strong insurance adoption, a similar focus on auto-pay enrollment would be beneficial.)

Delinquency (>30 Days): Delinquent accounts over 30 days past due have been kept low throughout the year, generally under 2% of receivables each month. However, October saw a uptick – about 3.3% of accounts receivable were over 30 days past due (the highest level all year). While overall collection rates are solid, the rise in late delinquencies in October should be monitored and addressed to prevent any ongoing trend.

Gross Potential Rent: The facility’s Gross Potential Rent (the monthly rental income if all units are occupied at standard rates) was about $14.7k in October. This potential peaked in spring at ~$17.1k and has fluctuated with unit count and rate changes. The addition of new units in October raised potential rent, but because those units weren’t immediately filled, actual revenue hasn’t realized that potential yet.

Economic Occupancy: Year-to-date economic occupancy (actual revenue collected as a percentage of potential rent) is roughly 76%. In other words, the facility has captured about three-quarters of its maximum possible rental income so far this year. Economic occupancy improved to the mid-80% range by October (as several vacant units were lower-cost or new), but there is still a gap between what could be earned at full occupancy and what’s being collected. Improving physical occupancy and reducing concessions/bad debt will help boost this metric.

Revenue Collected: Total revenue collected Jan–Oct 2025 is approximately $124,700. Monthly rental revenue trended in the ~$12–14k range for most of the year, with a dip in September (~$10.2k) when occupancy fell, followed by a rebound in October (~$12.8k). Despite the slight occupancy drop, year-to-date revenue is marginally ahead of last year’s pace and above budget (see below), indicating that rent rate increases or fee income have helped offset some vacancy impact.

Budget vs. Actual Performance (2025 YTD)

Through the first three quarters of 2025 (Jan–Sep actuals, as provided in the financial attachment), Poth RV & Storage’s financial performance is mixed – revenue is on target, but expenses have run high:

Revenue: Total income for Jan–Sep was $106.8k actual vs $105.1k budgeted, about 1.6% above budget【29†】. Strong rental income (slightly above projections) and other fees contributed to meeting the revenue goal. This is a positive outcome – the facility is generating essentially the expected top-line revenue (or a bit more).

Expenses: Total operating expenses YTD were $79.8k actual vs $62.5k budgeted, roughly 27.7% over budget【29†】. This overshoot is concerning and has largely been driven by Repairs & Maintenance costs, which came in triple the budgeted amount. (Notably, general R&M was about $13.2k vs $5k budget, and total R&M including yard maintenance was ~$34.2k vs ~$11k budget – a $23k overage). Some one-time repair projects or underestimation in the budget are likely causes. A few categories did save money (e.g. marketing and utilities were under budget), but not nearly enough to offset the maintenance overrun.

Net Operating Income (NOI): As a result of high expenses, NOI for Jan–Sep stands at $27.0k, well below the budgeted $42.7k. This means NOI is only 63% of the target YTD, a shortfall of about $15.6k【29†】. In essence, the facility gave back most of its revenue gains (and more) in unplanned expenses, significantly eroding profitability. Improving cost control – especially on maintenance – will be critical to closing the NOI gap going forward.

Overall, Poth RV & Storage’s YTD revenue performance is strong (slightly beating expectations and maintaining high tenant insurance uptake), but occupancy softness and expense overruns are areas of concern. To finish the year stronger, the property should focus on boosting move-ins (through better lead generation/conversion) to fill new and vacant units, and rein in operating expenses to improve NOI. By addressing these issues – while continuing the successes in revenue generation, insurance sales, and presumably auto-pay promotion – Poth can improve both its economic occupancy and bottom-line performance.

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