Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

The 90% Occupancy Myth _ What Happens on Day One

10 Mar 2026 · 1 min

Watch on YouTube

0:40

In this brief dialogue, the speakers examine a common misconception that a property portfolio is already 90% occupied when a new manager takes over. They stress that on day one the incoming manager must immediately begin sending notices to tenants, and must decide whether to collect rents or auction off units, depending on each unit’s status. The conversation highlights the importance of assessing the true stabilization level of the property, rather than relying on the previous owner's reported occupancy figures. It also points out that unit status labels (e.g., auction, overlock, unknown) often do not match reality, and that failing to dig into these details can lead to operational missteps.

Chapters

So are you really 90% occupied when you take over? 'Cause day one, guess what you're gonna have to do? You're gonna have to start sending them notices. You're gonna have to start either collecting or auctioning off this process. So you need to make sure where you are from a stabilization standpoint when you're taking over. And a lot of people miss that, honestly. They go based on what they were told and don't really know how to dig into the details.
Okay, and is it fair to assume that I'm gonna use auctions and overlocks and, you know, Units with statuses like that, right? Or, or there might be some unknown statuses or statuses that don't match up with what you're being told, right?