Never Skip Performing Due Diligence Self-Storage Audits

Carol Mixon has been working with Wentworth Properties for several years, assisting with due diligence self-storage audits on the West Coast. These audits are essential for any property being acquired, as new ownership requires someone to thoroughly assess the property on-site. Due to the many nuances involved in self-storage operations, it is crucial that a self-storage expert conducts the due diligence audit; someone not specialized in this field may overlook significant red flags.

We spoke with Jake Nolte from Wentworth Properties to understand why they find these audits so beneficial.

Wentworth Has Been Working in Self-Storage for Years Now, Correct?

Dave King started our storage division. We already had a property and were looking into adding a storage component. One of our company’s principals had known Dave King for a long time. At that point, Dave was at another company, working in business development. They consulted him about entering the storage market, which opened Wentworth’s eyes to the potential in that space. Ultimately, they brought Dave over to establish our storage team and we’ve been going strong ever since!

I really enjoy the fast-paced nature of the storage industry because of the size of the deals. I also appreciate its scrappy aspects. There are a lot of value-add opportunities, and I feel it’s a fundamentally sound sector. Additionally, I like the caliber of people in this space and the overall speed of the transactions.  Colleagues in this industry are often very helpful and supportive, helping when needed.

What Are Your Biggest Concerns with a Due Diligence Audit?

We like to conduct a due diligence audit right after we put a property under contract, ideally during our due diligence (DD) period. The sooner, the better. The most valuable aspect we’ve found is gaining insight into the current practices regarding collections on delinquent accounts. We appreciate feedback from Carol’s SkilCheck auditing, where she provides a list of delinquent units and indicates which units are missing rental agreements.

This information is particularly helpful because it gives us a head start in minimizing the amount of delinquency inherited during the due diligence stage. A comprehensive audit is crucial for this, as it allows us to gain a full understanding of the rent roll. While assessing the property’s condition is important and can be done by visiting, you won’t get a complete picture without conducting a thorough audit and getting into the store’s software.

Is it Wentworth Itself That Requires these Audits or a Third Party Like an Investor?

We perform these as one of our own requirements at Wentworth.  These self-storage audits have proven to be very valuable for us as part of our due diligence prior to acquiring a property.  The insights that come from them are invaluable.  They are an essential part of us getting a store in top operational condition.