Cut Your Losses

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Recently at my job my Boss and I have been going through a predicament. I work for a Storage business and we have an issue with some of our tenants. Unfortunately a few of them have skipped out on their bills and they have a very large delinquent balance which we are owed.

Some of these balances number in the thousands and it is quite clear to me that they likely have absolutely no way to pay it off; now or ever. One of them even filed Chapter 7 bankruptcy. So yeah, that happened.

Now we are really are screwed.

Anyway, this whole ordeal got me thinking. I would rather make a deal to have waive these tenants outstanding balances completely in the agreement that they remove their belongings within the month or else they relinquish their property rights to us. This idea of mine makes it so we can just move on. After all we are taking a double loss being in the storage business. The first loss is that we are not getting paid for the rent which we are owed. The second loss is that we have deadweight inventory. If we could move past this deadbeat we could get another customer into the same storage unit who would actually pay their bills. So long as these deadbeats and their inventory are still in our system then every month we are losing more and more money.

I want to cut the losses here and now.

Now, this is an opinion of mine, much in the same vein as my father. If I deal with bullshit, I like to just move past it and onto a brighter future. My boss is different, and he too is like his father. They want payment from these deadbeats, as they are owed. And, I cannot blame them, they have every right to want payment.

However, I just don’t see it practically happening.

This is why I have been talking to my boss about just moving on and taking the loss so we can get the win in the future. Now, this is a difference in philosophy, and I am not sure as to whether either of us is objectively right or wrong. But, in my opinion, I think that in our case it would be better to just move on: especially since I have ideas on how to get some new tenants in the building.

Again, this is my code. When you deal with bullshit, cut your loss as soon as possible and move on. Dealing with retribution feels good, but it often it is messy, takes a ton of time, and then no one really wins.

I’m here to cut the check. So I say, let’s cut the losses.

Drop me a comment here please, I want to know your opinions on this subject. Tell me if you think I am right or wrong and I would like you to give me an example in your life from your experiences as to why you agree or disagree. Then after reading them I will come back and re-visit this post. If for many of you this might be your first time commenting on a post, please do it.

I look forward to reading them and hearing your reasoning.

 

Keep Smiling,

Nolan

One thought on “Cut Your Losses

  1. I didn’t know you were working for a storage facility….I used to own one and we had to pull it out of the ashes when my dementia ridden uncle ran it into the ground and my sis and I had to buy him out and take over $150k of delinquent rents. While it can be so lucrative, it attracts so many bottom feeder people….have you started the auction process? Good luck! I love your blogging! Keep Trusting

    Like

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