The storage boxes aren't going to fill up by themselves, the facility needs to be in good shape always and customer feedback must be attended to. It's a juggling act in a relatively fast-paced environment. Are you up for it?
Self-storage management sets out the systems and processes to ensure your facility is able to meet the rising demand for storage box units(1). As the competition will intensify (2), without proper management, the weight of growth can be too heavy to bear.
As clique-ish as it may sound, not having a plan is a plan to fail. Let's look at some of the reasons that underline the importance of self-storage management.
First, a self-storage facility is a unique real-estate proposition. Unlike home or office rentals, it is a short-term rental facility. It's monthly, if not shorter. The rapid ebb and flow of customers can be challenging if you do not have a management plan.
Second, customers are spoilt for choice, from independent and owner-operated self-storage facilities to multi-location chains, there is always someone waiting to welcome them. Ensuring your facility is an attractive option cannot be an ad-hoc activity. It is a consistent endeavor with systems, processes, and people in place to execute them.
Third, unwieldy growth can be a liability. With demand ever rising, it is tempting to embrace everything and everyone that comes your way. But without a proper self-storage management plan, the next customer can be the straw that breaks the camel's back.
As the business landscape changes, you will need to adapt the management of your facility accordingly. On this note, conducting storage asset management reviews is a good practice. It gives you the opportunity to take stock of the business. Without it, you will be flying blind.
Furthermore, these reviews can shed light on potential growth areas. As competition intensifies, innovation will take precedence in growth-oriented companies. But they must be guided by data and insights, which self-storage management systems can produce.
Self Storage Management Companies
Whether you choose to delegate completely or in part the management of your self-storage facility is a decision you must deliberate carefully. By and large, it boils down to how much control you are willing to accede to the third party.
There are two types of self-storage management services offered to businesses in the industry - full autonomy and limited responsibilities.
Under a full-autonomy management model, every aspect of the facility's day-to-day operations is the responsibility of the third party. Amongst others, they include marketing and sales, pricing, IT infrastructure, customer management, rental agreements, security, and payment systems. You will receive management reports at periodic intervals.
In the limited responsibility model, you will retain some degree of control over the day-to-day operations of the facility. While some may allow you to choose a selection of the services they offer, others may have fixed packages. In your research for suitable self-storage management companies, take note of the suite of services offered and how they are packaged.
The fee payable to the self-storage management company will be dependent on the choices above. They can range between 5% and 15% of your monthly revenue. Currently, there isn't an industry standard with regard to the latter.
How do self-storage management companies raise your game?
One of the major reasons is their experience and expertise. It is not possible for you to keep on top of everything in the business and industry. As the industry evolves, there will be new things taking shape. Keeping up with these trends can be challenging.
Managing employees is a big task. From recruitment and training to salary and compensation plans, it is not every business owner's cup of tea. With a tight labor market condition, human resources management has become a more acute function now. But with a third party managing your facility, you can strike this off your watch list.
The right pricing strategy is vital in a competitive market. Too low and you may find yourself in the red, too high and you may find yourself priced out of the market. An experienced self-storage management company possesses the local knowledge as well as competitors' prices to develop the right price band.
Finally, neither marketing nor sales are the forte of every business owner. But you will need to get them right, especially in the age of social and digital media marketing. It can be a very complex undertaking when you think of the frequently changing algorithm of social and digital media platforms. While the third party may not have the experience or expertise, they know of marketing agencies with them.
Some of the top 10 storage companies are run by self-storage management companies. With multiple locations, they enjoy economies of scale. But more importantly, it allows the owners to focus on more strategic matters. It is, as mentioned, a fast-growing industry. There is always something new on the horizon.
The top self-storage companies have the experience and expertise to do the job well. Add available technology into the mix and you could well be on your way to greater success.
BEST SELF STORAGE FRANCHISES
The self-storage business is not without risks. There are pitfalls, which may not be obvious to some, especially if you are new to the industry. Thus, buying into a self-storage franchise is a plausible alternative.
Self-storage franchising is a recent (3) development in the industry. It provides entrepreneurs and investors with a pathway into it. Like most franchising models, it lowers the risk to the entrepreneur or investor. Sometimes, it is possible to turn in a healthy revenue or profit from the word "Go!". Of course, this is subject to the franchise you bought into.
If you are open to considering a self-storage franchise, below is a list of the best self-storage companies with franchising opportunities:
Go Mini's
Garagetown USA
Zippy Shell
1800-Pack-Rat
Units
Storage Authority
Myway Mobile Storage
U-Haul
PODS
Extra Space Storage
Apart from the above, you might want to explore the list of the top 100 self-storage operators:
Public Storage Inc.
Extra Space Storage
National Storage Affiliates Trust
Life Storage Inc.
U-Haul International
CubeSmart
Prime Group Holdings LLC
StorageMart9. Merit Hill Capital
SROA Capital
SmartStop Self Storage
StorQuest Self Storage (The William Warren Group)
W. P. Carey
Simply Self Storage
Andover Properties LLC
Morningstar Properties
Reliant Real Estate Management LLC
Westport Properties Inc./US Storage Centers
Amsdell Cos./Compass Self Storage
Store Space Self Storage
Rosewood Property Co.
Advantage Storage
Madison Capital Group LLC
Atlantic Self Storage
Red Dot Storage LLC
Brookwood Properties LLC
Devon Self Storage
KO Storage
Strat Property Management Inc.
Safeguard Self Storage
Urban Self Storage Inc.
Baco Properties
A-1 Self Storage
SecureSpace
Metro Mini Storage
Baranof Holdings
Dahn Corp.
Snapbox Self Storage
Lock Up Self Storage
Spartan Investment Group
CGB Group (A-Affordable Storage)
Arcland Property Co.
Watchman Properties (ManCave Storage Group)
Crystal View Capital
Guardian Storage
Valley Storage Co.
Platinum Storage Group
Highline Storage Partners
SAFStor
Nolan Inc./Nolan Brothers of TX
Superior Storage
VanWest Partners
Value Store It Management Inc.
All-Purpose Storage
All Aboard Storage
Pogoda Cos.57. Budget Store & Lock Self Storage
10 Federal
Stein Investment Group
Ramser Development Co.
Storage of America
Trojan Storage
Storage Etc.
Gulf Atlantic Asset Management
Etude Capital
Haggar Group LLC
StorageMax
StorPlace Self Storage
Prestige Capital Management
Bee Safe Storage and Wine Cellar
Stor-N-Lock Self Storage
Wentworth Property LLC
Towne Storage Management Co.
Five Star Storage
Keylock Storage/Bitterroot Holdings
UTEX Storage Partners
Tierra Corp.
Next Door Self Storage
America West Management
SKS Management LLC
Purely Storage Inc.
Boardwalk Development Group
Epic Group (WBK-EGI)
Neighborhood Storage
Jenkins Organization Inc., The
Absolute Storage Management Inc.
My Garage Management LLC/Riverbend Development
U-Stor-It89. Cubix Storage
Columbia Storage Group
A-American Storage Management Co. Inc.
LockBox Storage
Ojai Oil Company/Golden State Storage
Polo Properties LLC
Stor-It Self Storage LLC
Nova Storage
RHW Capital Management Group LLC
Access Self Storage
Baldwin Howell Properties LLC
Guardian Self Storage
Storage Unit Management Software
With the introduction of technology into the industry, operators of storage units have greatly enhanced productivity, improved customer experiences, and increased profitability. Technology has helped owners navigate the ups and downs of the business better. Best of all, it keeps them fighting fit!
Most self-storage facility management software is highly versatile. They can handle a wide spectrum of activities needed to run the facility well. Some can be customized or plugged into existing software already in use. This is important because it avoids a complete overhaul of the company's IT infrastructure, which can be costly.
The best self-storage management software possesses the following characteristics:
Intuitive sitemap
Allow for customizations
In-built CRM system
Tenant portal to enable self-management of all matters pertaining to their rental
User-friendly payment system
The cost of self-storage varies from vendor to vendor. Some vendors charge monthly or annually while others per unit. In addition, you will need to factor in as well the features you are after. Expect to pay more if you are looking for a complete suite.
One that merits consideration is Quickbooks self-storage software. Most recognize it as accounting software. It is subscription-based. Like most, it can be accessed from anywhere.
Other self-storage management software includes:
SiteLink
Unit Trac
6Storage
Storman
SELF STORAGE MARKETING
An essential business activity is marketing. Remember, customers, are spoilt for choice. Unless your brand of self-storage facility remains salient in consumers' minds, you are unlikely to be considered.
Advertising is a major marketing activity. Without it, you will be winking in the dark. Regardless of the number of winks or smiles, you will not be noticed. Your other marketing activities may fail to achieve their objectives as a result. In a nutshell, you have made it easier for competitors to steer ahead of you.
Today, self-storage advertising can take on many forms. From TV, radio, and print to online, you are limited only by your budget. More importantly, you can tailor the message and execution according to the platforms you intend to use. There are a number of marketing agencies that specialize in advertising self-storage facilities.
In the online space, which is most commonly used by businesses, you can opt for any or all of the following:
Inbound Marketing
LinkedIn advertising
Social media advertising, for example, Facebook, Instagram, Tik-Tok or Pinterest
Google Ad
If you want a quick return on your advertising spend, Google Ad's pay-per-click (PPC) is arguably the most effective. Over 3 in 5 have clicked on a Google Ad (5). It demonstrates the effectiveness of Google advertising. After all, there is a reason "Google It" has made it into the everyday conversation of people.
Arguments against PPC tend to revolve around its cost. But it doesn't have to be expensive. Depending on the revenue potential of your business, it can be relatively low in comparison. The speed at which it can produce the desired result is the most appealing draw of PPC advertising. With proper targeting, you can expect to achieve the desired result within months if not earlier.
Partnering with the right marketing agency is important. They can guide you on budgets, choice of media platform, messaging, and offers. With their experience and expertise, you can look toward a favorable return on investment.
The future of self-storage businesses is bright. But as argued at the onset, proper management is key. The moving parts must be well-oiled to ensure they run smoothly.
