Sheltair Raising Hangar Rents

[Davidv]

Well I thought I'd let everyone know of probably the dumbest PR move yet in the wake of this virus.  My hangar lease is up in July and Sheltair thought this would be a good time to send my renewal paperwork with a rent increase of $15 (already probably the highest in the country).  The $15 is somewhat immaterial to both Sheltair and myself in the long run, but talk about the worst timing possible to send out this notice.  The pilot community is small.

[gsxrpilot]

I completely agree with you... although with the shortage of hangars just about everywhere in the country, they could probably raise rents $100 and we'd all just bend over and take it.

[Danb]

Weak

[MB65E]

Better than my notice. “As I mentioned, the airport recently won an FAA grant to rehab our taxiway which is adjacent to the hangar you occupy. That row of hangars will violate the taxiway’s building restriction area and, unfortunately, we are required to remove them in order to complete the project.”

I’d gladly pay the $15 extra and smile doing it. 
 

-Matt

[chriscalandro]

How much is your rent

[Gagarin]

2 hours ago, Davidv said:

Well I thought I'd let everyone know of probably the dumbest PR move yet in the wake of this virus.  My hangar lease is up in July and Sheltair thought this would be a good time to send my renewal paperwork with a rent increase of $15 (already probably the highest in the country).  The $15 is somewhat immaterial to both Sheltair and myself in the long run, but talk about the worst timing possible to send out this notice.  The pilot community is small.

What airport are you based in? I am at FXE. 

[Davidv]

Yes I'm at FXE too.

[Davidv]

1 hour ago, chriscalandro said:

How much is your rent

around $750

[KB4]

I hear guys up here in the NE talking about 6 year waiting lists for a hanger in FL, no shortage of demand so they can keep jacking the rent on you cause they are lined up to take you hanger.

[chriscalandro]

The open hangar at homestead is 700

[Davidv]

5 minutes ago, KB4 said:

I hear guys up here in the NE talking about 6 year waiting lists for a hanger in FL, no shortage of demand so they can keep jacking the rent on you cause they are lined up to take you hanger.

Of course they can, and as @gsxrpilot said they could raise higher and we would still pay.  I was more complaining about their business tactic of reaching out 3 months prior with a BS small increase in the midst of all of this.  It's not even like they can "lock you in" before it gets bad since I can leave on (30) days notice without any penalty.  I suppose the new federal government protection on evictions doesn't apply to aircraft hangars?

Also, getting a hangar here wasn't actually that bad.  It was around a 2 month wait to get one.  Another hangar complex on the north side of the airport was bought by a new FBO and raised the rates $200/month.  A bunch of their tenants moved out so for a period of time you could get one there immediately.  I'm not sure if they are still available.

[skydvrboy]

Our airport advisory board sets the hangar rent policy, which is in our contract.  They adjust rents every 3 years according to the change in the Consumer Price Index.  I just happened to get my hanger 2 months before the scheduled adjustment.  I wasn't too disappointed when it went from $89 to $93 a month. 

I suppose it's all regional though, as around here for $750 a month you can rent a pretty nice 2 BR house in a good neighborhood.

[Gagarin]

58 minutes ago, Davidv said:

around $750

You know there are people actually living in the hangars at KFXE, sleeping on inflatable beds and using commodes inside a wooden shack with AC inside the hangar.

[chriscalandro]

4 minutes ago, Gagarin said:

You know there are people actually living in the hangars at KFXE, sleeping on inflatable beds and using commodes inside a wooden shack with AC inside the hangar.

I thought about that.

[Oldguy]

18 hours ago, Davidv said:

Of course they can, and as @gsxrpilot said they could raise higher and we would still pay.  I was more complaining about their business tactic of reaching out 3 months prior with a BS small increase in the midst of all of this.  It's not even like they can "lock you in" before it gets bad since I can leave on (30) days notice without any penalty. 

Of course, as a friend of mine learned at KORL, they can use the 30 day notice to terminate your lease and rent it to someone willing to pay more than you are. Essentially evicted him and his two planes three months into his lease for a King Air willing to pay 50% more.

And yes, it was Sheltair.

[markgrue]

Dang I was going to complain about $80 a month....   I will shut up...

Mark

 

[eman1200]

Not even close. $717-$841 a month for a t-hangar at PHNL, page 8
https://hidot.hawaii.gov/airports/files/2012/10/4.5-Schedule-of-Rates-and-Charges.pdf

hhhhmmmm, $750 “isn’t even close” to $717-841?

[ArtVandelay]

You know there are people actually living in the hangars at KFXE, sleeping on inflatable beds and using commodes inside a wooden shack with AC inside the hangar.

Are you saying the commodes have AC or they’re use a portable AC window unit inside the hangar?
Probably rig a small tent with AC unit and be quite comfortable.

[Frank B.]

On 3/20/2020 at 3:49 PM, Davidv said:

around $750

I am out here in the country, and not down in your booming metropolis, at KOMN, just north of KDAB, where there is a major hangar shortage and major waiting lines at all of the local airports for hangar space. I am very fortunate to have a great hangar that is only 5,273 ft. “Not that I measured it down to the exact foot ... LOL” from the front door of my house to the front door of my hangar and I only wish that I was only paying $750 per month .. heck I would be happy with double that. 

[cbarry]

Here in North Texas, try this on for size:  $.08/sq. ft/ month + taxes + usage fee.  On a typical 50X50 hangar, that runs approximately $300/ month—ON A HANGAR YOU OWN.  These are the ground rent and taxes...  I asked them municipal bureaurats (spelled for the occasion) if all of this came with mineral interests!?  We have one of the most out-of-sync hangar cost structures that I’ve seen.  I guess as eco 101 says, the price is set at what a willing buying and seller settle on.  I just don’t  remember the bargain for exchange!  

[FloridaMan]

I doubt Sheltair is setting those prices. I’m a Sheltair base customer and am happy they’re here and not Signature. Our hangars go up every year as prescribed by the city. 

[Shiny moose]

My T hanger rent 170 including electricity. Nice LED lights and 2 outlets, I have no complaint except with a 2 year average wait, the AP management secretly rents vacant spaces to the FBOs then they jack up rent to unsuspecting owners. Subleasing not allowed but done 

[cliffy]

While on the Airport Advisory Board for a few years I helped write the hangar policy for the city and we made sure to EXCLUDE a requirement that the hangars (built by private owners on city leased land), after X number of years reverted to city ownership.

We have  a land lease (at the time I was there it was @.07 cents per square foot) and no more available property to build on as the city has never had anyone with an interest in building more hangars. The infrastructure for hangars has not been planned for for over  a decade or more. As a Part 139 airport the city building and safety department didn't even know approval for any building inside the airport boundary had to go through FAA vetting before turning the first shovel of dirt!  The airport has been here 60 years!  

When I was Airport Director (for a short time) (didn't see eye to eye with the City Manager who wanted to get rid of the airport) no one in the city knew of discretionary funding from the FAA for building hangars. We get $1 million a year for the airport and all they knew how to do was repave ramps.  

ALL of the hangar building for the last 20 years has been big boxes for well heeled locals (for the most part) to park their classic cars in and show tractors and BOATS!  One of the big wheels in town has 5 of them and one airplane. We haven't built a T hangar complex in over 20 years here. 

Our T hangars are very old Port-a-Ports that sold new for @ $7500  now go for $20,000 or more. 20K if you're lucky

[Davidv]

No whining here, and if this now turned into a hangar cost competition thread so be it, that certainly wasn’t the point (nor was it to complain about the absolute rate since that was in response to someone that asked).  It was merely to point out the coincidence of everything going on this week along with Sheltair sending out a renewal notice 101 days prior to my lease renewal date (with a small increase).  
 

No one really knows how long this thing is going to last or how bad it’s going to get  but there’s one scenario where they will actually be left with some lack of demand and won’t have pricing power.  I’m not saying that’s a high likelihood, but way higher than a few weeks ago.

[ArtVandelay]

I think we might be comparing apples and oranges:
T hangars vs regular box hangars.

A stand alone box hangar is much more (per square foot) at my airport.