Stop Competing With Yourself
Many times, a self-storage property is its own competition. Meaning, there are simple things an owner can do to make their property stand above many of the competitors, simply (and sadly) because these items aren’t commonly implemented by independent self-storage owners.
Answer the Phone and Listen
There are some types of businesses that generate new customers entirely thru email, and others generate them entirely thru social media. Storage, however, still receives a considerable amount of business from phone calls. Sure, there are email inquiries, and yes, there are visits to websites and inquiries placed thru web forms. By and large, storage customers still rely on phone calls to find a facility. Storage is a commodity, and often the customers are simply looking on Google for storage facilities near their location, and calling the first ones on the list. If you don’t answer those calls, you won’t get that business.
Just answering the phone isn’t enough, though. Beyond answering their questions, you’ll often need to ask some of your own to ensure the customer is getting the appropriate unit size and type for their needs. What are they storing? How much are they storing? Are they trying to store the contents of a specific room, or a whole house? These are just some of the questions that are instrumental in helping to determine which type of unit is best for the customer (i.e. climate controlled or non-climate controlled), and what size unit is required.
Have a Quality Owner or Manager
Every facility doesn’t require a manager, but if there isn’t a manager, then the owner needs to be involved in the day to day activities of that location. That person may or may not answer the phones; there could be a call center used for the call volume. Still, the call center will not be able meet 100% of the call needs and the owner or manager would need to follow up in those situations.
Someone (owner or manager) needs to be available to follow up on delinquencies, lien notices, overlocks, auctions, unit move-ins, unit move-outs, unit clean up, email follow up, deposit refunds, payment processing, and general maintenance. If your facility allows payments via check/money order/cash, then someone will need to be on site to collect payments and post them into whatever system is in place. Customers appreciate having someone on site, even if it isn’t on a full time basis.
Clean, Dry, & Secure
Having a facility that is clean, dry, and secure is expected by both potential and existing customers. This includes both inside vacant units and throughout the facility in general. No one wants to rent from a place that looks like a dumping ground. On top of simply being disgusting, trash that is left in vacant units or strewn on the grounds invites critter and insect infestations. A facility that is damp will smell, and that smell will turn away potential customers. Also, damp walls can lead to mold.
Security is a priority for storage, including both the gate and the lights. A properly working gate will ensure that only those who should be onsite are actually onsite. It can reduce and even eliminate theft and break ins. Proper lighting is a big selling point for any facility, as it ensures that tenants feel safe when visiting the facility in the night time hours.
Accurate Payment & Tenant Tracking
If you don’t keep track of your current tenants and their payment status, you are most likely losing money each month. For each unit, you need to know (at a minimum) the tenant name, address, phone number, email address, whether a deposit was paid, the last payment date, the paid thru date, status, and balance due. The paid thru date will indicate delinquency and the status will indicate where in the delinquency process the tenant currently stands. You must have all the information needed to contact them in case of delinquency or any other issues. If you have a gate system, you also need to know their gate code.
This doesn’t mean that you must have a fancy software system to track this information. If you have a small facility, you can store all of this information in Excel. Otherwise, there are various software options available that can track all of this and more.
Rates are Not Competitive Based on Occupancy
If the property is full, then the rates should go up, regardless of the competition. Properties at 95+/- occupancy are not maximizing revenue. In short, your occupancy is so high because your rates aren’t high enough. Take a look at your unit mix and occupancy within the unit mix. Do you have a certain size that is always 100% occupied? If so, you should consider raising your rates on those units to be more competitive. Conversely, do you have a certain size that is always widely available? If so, you should consider lowering the rates on those units to be more competitive.
Many experts say that vacancy in the 10% range is optimal. Anything lower than that means you are turning away customers. This attracts competition, which no owner wants to do.
In Summary
You can chose to implement one, many, or all of the items above. Regardless of your choice, each of these items will help your property maximize its earning potential, and set it up for future success.