ccording to information from the U.S. Department of Urban Planning and Development, homelessness has increased by more than 12 percent in 2023, for a total unhoused population of 653,104 people.

With inflation to blame for the double-digit increase, homelessness is a growing problem the country faces, and it can become a problem for a self- storage facility if the homeless try to make a unit their home.

M. Anne Ballard, president of marketing, training, and developmental services for Universal Storage Group in Atlanta, Ga., has dealt with the issue several times during her long career in the industry.

“It’s an unfortunate situation and probably will not get better,” says Ballard of the homeless issue in America. “It’s really an issue that is increasing in major cities, especially with so many migrants being taken into cities.”

Ballard says there’s several steps your facility can take to help prevent homeless from setting up camp in your units:

1. Make sure you’re covered in your lease. As with many areas of your business, your first line of defense is the wording in your lease. “Make sure there is wording in your lease saying there is no living on site or habitual occupancy, even during the day,” says Ballard. “It’s also good to include that only storage items are allowed in the units.”
2. Note the red flags. When a potential tenant comes in and they haven’t listed a home address, employment, or other source of income, it’s a red flag that the applicant may be homeless and trying to find shelter in a unit. “If they don’t have a credit card, address, or employment, you can refuse to rent to them,” says Ballard.
3. Meet your tenants. Even if your facility has no contact leasing, make sure your managers are following up with new tenants, calling the number they provided. “Our managers call and make sure everything went well with their move-in,” Ballard says. This lets tenants know you’re not only providing customer service but are aware of what’s happening on the premises.
4. Conduct daily walk-throughs. This is an important line of defense for USG’s properties. USG managers are required to do a cursory walk-through of the property daily, checking units and locks and greeting tenants who happen to be on site (she says it’s OK to be a little nosey when making small talk by asking what they’re doing). “If tenants see managers out on the property, they are less likely to be doing things they aren’t supposed to be doing,” says Ballard. One of the biggest mistakes facilities make is not securing vacant units with locks. “All units that aren’t occupied should be secured, which not only prevents people from living in the unit, but also prevents tenants from deciding to claim an unrented unit they aren’t paying for,” says Ballard. While walking the property, red flags include seeing a tenant on the property every day or often and seeing power cords running into units. Another sign of someone living on the property is seeing the hallway lights on when the manager comes in. Ballard advises facilities to also check bathrooms frequently. “Of course, if someone is living on the property, the bathroom is their only source of water and facilities, so make sure to keep an eye open there, too.”
5. Monitor the security systems. Your final defense in monitoring your property includes paying attention to the gate security and door reports. Note any tenant who is coming and going daily or on a too-frequent basis. If a tenant is going to their unit every day and not leaving, it could be a red flag they are staying in their storage unit. Ballard adds that also monitoring the camera system can alert managers to someone living in a unit.

Despite your best efforts, someone may still be able to set up temporary camp in a storage unit. Years ago, one USG manager discovered a tenant living in his unit. “She asked him to leave; unfortunately, the next day we discovered he had committed suicide in the unit,” says Ballard. “It was very unfortunate and the worst-case scenario.”

Though many chronic homeless people deal with mental health issues, anyone can become homeless. “There are people who become homeless because of medical bills,” says Ballard. “While we have a job to do, it’s best to remember these are people and we should be compassionate. I believe we need to be empathetic with them while not terrorizing them.”

She says it’s a good idea for managers to keep a list of resources for homeless on hand and offer these resource contacts. “Explain to them that we must run the facility according to the lease agreement and offer them resources.”

Next steps include:

• Ask the tenant to leave. Tell them you are terminating their lease.
• Mark their file. Make sure the conversation is documented within their account; mark their digital and/or paper files, notating that the lease is terminated and no future payments should be taken.
• Contact the police as a last resort. “Most people will leave voluntarily once they are discovered,” says Ballard. Law enforcement should only be called if the tenant is causing a disturbance, the manager feels threatened, or the tenant refuses to vacate the property.