Question-and-Answer Session
Operator
Your first question comes from [Inaudible].
Unidentified Participant
Hi good morning guys. I just wanted to ask you, where are you’re street rents right now compared to your average in place rent on the portfolio?
Kenneth Myszka
In most market our street rates are on par with the rates we are charging, say for those tenants who are lagging a bit and haven’t had an increase in the last 10 to 12 months.
Unidentified Participant
I guess as a follow-up to that. What is your general sense on storage fundamentals in ?09, do you think that you?re going to have to regain may be easing street rents to actually below your in place portfolio to meantime demand and occupancy in your portfolio?
Kenneth Myszka
No. I don’t think so, what our goal would be we try to have continue with concession as necessary, but keep the street rates where they are and hopefully with a little more increases is the time goes by. Our goal is to try to get the occupancy up, we have a one-time concession as I mentioned, it seems to be working as far as physical occupancy is concerned.
Our customers generally stay at 11 or 12 months, they get one month free and they say that make the time over the long hours, we think what would be a positives for us. So, to get the brief answer to your question is, no, we don’t anticipate softening our asking rates.
Dave Rogers
May be just to elaborate a little bit, if we haven’t had the BUCO in Florida, which has been just a terrible market for us the last 18 months, I don’t think we have to do it anywhere and the reason people are leaving in Florida is we think part of the natural cycle, they are not leaving because of in place rent, the tenants are paying, there is globing rate increases so, as Ken said, we are fighting it out on the new lease ups with incentives, but we are protecting the core of rates and if Florida holds, boy I think anywhere would hold.
Unidentified Participant
Just lastly, what where your management fee for the JV in the quarter and con you just quickly just remind us of the calculation of those fees and what an expected run rate would be?
Kenneth Myszka
Yes, we are entitled to a 6% property management fee based on the rental revenues of the joint venture and 1% call center fee. So, the fees for the quarter, we are really two months, we closed in late July. So August and September were an impacted to this quarter and we earned about a $180,000 in fees for those two months. If we don’t add anymore properties that we would be about $90,000 a month, we’ve had the cost baked in, because we anticipated putting this JV in place, actually we anticipated it at the beginning of the year.
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