INSIGHTS

Lessons Learned in Self-Storage

After more than two decades in the self-storage industry, I’ve seen the landscape, and my career transform dramatically. Facilities have altered from simple drive-up units and crude retrofits into sleek, high-tech spaces with climate control and remote management.

As the properties have become more sophisticated, so have day-to-day operations. It’s been quite a journey! Along the way, I’ve picked up valuable lessons about what works, what doesn’t and how to navigate the many nuances in between.

Lesson 1: It’s Important to Know Your Customers

I began my self-storage career in 2004 as a floating associate for Storage Investment Management LLC (SIMI) while attending college full time. I filled in staffing gaps across New England—for example, when a manager was out on vacation—which gave me a front row seat to a wide variety of facilities and communities. One day I’d be working in downtown Boston, where I’d be juggling multiple tenant needs; the next, I’d be in rural Maine, where I might not see a single customer all day.

These experiences taught me early on that self-storage is anything but a one-size-fits-all business. Every facility has its own personality, rhythm and clientele. While standard operating procedures are essential, it’s just as important to truly understand your property and your customer base. Observe tenant behaviors. Ask people why they chose your location. Learn what matters to them and what makes you stand out from the competition.

The best self-storage operators take the time to tune in, listen and adapt. This deep understanding is the foundation of effective operation, including marketing. When you know what resonates with your unique audience, you can craft messaging, promotions and customer experiences that truly connect.

Lesson 2: Leadership Happens on the Ground

In 2007, I was promoted to property manager of SIMI’s flagship facility in Boston’s South End, an eight-story facility that included 700-plus traditional and climate-controlled units, commercial space, parking, truck rentals, billboards, cell towers—you name it. Our customer base ranged from luxury condo owners to individuals experiencing homelessness. It was a complex, demanding environment that taught me a lasting lesson: Leadership starts with action.

The days were long and challenging. I answered phones while cleaning bathrooms and booked reservations while sweeping hallways. But through consistent effort and motivation, my team and I transformed the site into a top performer. Never underestimate the power of a driven, supported team!

Lesson 3: Kindness Is Powerful

Working in Boston, I began to understand just how emotionally charged the self-storage experience can be for customers. Many are dealing with difficult transitions: divorce, job loss, downsizing, a death in the family. They may arrive overwhelmed, frustrated or even angry. Meeting them with empathy and patience can make all the difference.

I’ll never forget one tenant who stormed to the front desk, furious over a keypad issue in the elevator. I calmly walked her through the process, helped her to her unit and gently asked, “Are you OK?” She broke down, explaining she was in the midst of a messy divorce and living in limbo. We took a deep breath together. At the end of the day, she came back to thank me. A month later, when she moved into a new home and downsized her unit, she brought me flowers. That moment still stays with me because it reminded me that kindness is powerful, especially in self-storage.

Lesson 4: It’s Critical to Embrace Change

By 2011, I had transitioned into the role of marketing manager, overseeing strategy for more than 30 locations. My focus was on driving revenue, increasing occupancy and enhancing the customer experience. It was a pivotal time, as the self-storage industry was shifting from traditional print advertising into the digital era.

One of my boldest moves was recommending that we eliminate our Yellow Pages budget. I promised our company president that we wouldn’t see a dip in rentals. I think he nearly fell out of his chair! But he trusted me, and we moved forward.

The result? Occupancy continued to grow, and our marketing became more targeted, efficient and measurable. It was a pivotal reminder that marketing must evolve to meet your customers where they are today, not where they were yesterday.

That experience also taught me that successful marketing requires courage, data and the willingness to evolve. Don’t be afraid to challenge the status quo, test new ideas and embrace change. Track what works, pivot when needed and never stop learning.

Self-storage may seem simple on the surface, but it’s anything but. It’s a real estate business, a service business and, most important, a people business. Over 20-plus years, here’s a summary of what I’ve learned: Listen to your customers, lead your team with empathy and never stop adapting. Because in this industry, flexibility and compassion go a long way.

Understanding Physical and Economic Occupancy

Occupancy is the number of units that are occupied over a period of time. Then, this number is converted to a percentage letting you know “how full is your facility”. Conversely, vacancy represents “how empty is your facility”.

As an example, a 100-unit facility with 10 unoccupied units has 90% occupancy rate and a 10% vacancy rate. It seems simple enough on the surface, but to truly understand how well your facility is performing we need to go beyond physical occupancy and investigate economic vacancy.

Physical occupancy

As shown in the example above, physical occupancy are units with items stored in them which includes tenants paying their rent on time as well as delinquent tenants. The major problem with physical occupancy is that it does not distinguish between income generating and non-income generating units.

It is important to remember that achieving 100% physical occupancy is not the goal. In fact, multiple issues can arise because it does not allow you to maximize your potential revenue impacting operating income and property value.

Taking a closer look at the vacant units, you want to identify why they are empty and determine if you have “full” units that are not generating income. Truly vacant units are available for rent. Using the example above for the 100-unit facility, in addition to the 10 available for rent units there are 3 units with delinquent tenants, 2 units storing items for the owner, and 6 units receiving a first month free incentive. Although the property is 90% physically occupied calculating the economic occupancy, tells a different story.

10% (available) + 3% (delinquent) + 2% (“unrentable”) + 6% (incentives) =

79% Economic Occupancy

Understanding “full” does not equal income generating is the first step in putting economic occupancy to work for you.  Well-run facilities have 90-95% economic occupancy.

Impact on Value

Economic occupancy represents how much money is being left on the table. It shows if you are effectively achieving your gross potential income and reflects how well a property is being managed. When a facility has a low economic occupancy, it tells investors and lenders that the property is less valuable.

The best way to improve economic occupancy and increase property value is done by managing occupancy.

Managing Occupancy

Individually assessing the source of the vacancy is a good place to start. When looking at your units avoid the idea that full is better and raising rents should be avoided. Tenants who pay market rates will generate more income and allow you to budget and plan for capital improvements. Be strategic with incentives, it can be tempting to offer the first month free, but too many incentives can create an immediate loss that cannot always be recovered. We all know turnover can’t be avoided, but having a well-managed website can generate leads and lessen the effects of turnover. Looking at any unrentable units you currently have and determining what is needed to make them rentable can uncover additional revenue with little output. Ongoing oversight and assessment are the keys to success when addressing occupancy.

Advantages of Third-Party Management

Experienced management companies have perfected the art of running a successful property.

• They understand when and how to use incentives.
• The markets rates for your location(s).
• How to recover delinquent payments.
• Converting unavailable units to available.

Outsourcing management allows owners to have more control over how their facility performs. Issues are handed off to the management company to address and owners can benefit from increased operating income without the hassle of management.

One of the most compelling arguments for third-party management is found in how management companies are paid. When your operating income increases, their management fee increases. This makes third-party managers highly motivated to run your facility as efficiently and effectively as possible.

Other Benefits of Third-Party Management:

• Reduced cost on shared services
• Revenue management and pricing guidance
• Recruiting, staffing, training, & retention of quality staff
• Access to data for informed decision making
• Professional services, compliance, and financial reporting

Summary

Economic occupancy is an effective way to measure the success of your business. Examining empty units as well as non-income generating units can increase your operating income and overall property value. Using strategies to recover delinquent rents, create a funnel of new leads, and adjust rates to market are all ways to address a low economic occupancy.

If you are interested in seeing how third-party management can improve your economic occupancy and the overall value of your facility, please request a PRO Forma or Contact Us to learn more.

Addressing the Challenges of Seasonal Delinquencies

Delinquency poses a significant challenge for self-storage facility owners. This issue becomes even more problematic during the fall and winter when delinquency rates rise. Economic and psychological factors drive the increase in late payments, creating a complex environment that owners must navigate to manage and reduce delinquency effectively.

Economic Factors Contributing to Delinquency

Holiday Spending

One of the leading causes of increased delinquency in the fall and winter may be the financial strain associated with the holiday season. Consumers may prioritize holiday-related expenses such as gifts, travel, and celebrations, often at the expense of discretionary expenses like self-storage rent.

Year-End Financial Obligations

In addition to holiday expenses, individuals may face additional financial pressures as the year ends, including property taxes and insurance renewals.  These lump-sum payments can strain their budgets, making paying for ancillary services like self-storage more challenging. When these costs coincide with holiday spending, many individuals may struggle to manage all their bills, leading to increased delinquency.

Seasonal Employment Fluctuations

The fall and winter months often see fluctuations in employment, particularly in industries reliant on seasonal work, such as agriculture and construction, that are more active in spring and summer. As temperatures drop, demand in these sectors decreases, leading to job losses or reduced work hours for those engaged in that work. Faced with reduced income during these seasonal slowdowns, some may prioritize essential bills like rent and utilities over discretionary expenses such as self-storage.

Psychological Factors Contributing to Delinquency

Financial Stress and Decision-Making

Financial stress intensifies during the fall and winter due to the combination of holiday expenses, year-end obligations, and colder weather, which can lead to increased anxiety about finances. Research from the American Psychological Association shows that financial stress can impair decision-making and lead individuals to procrastinate or neglect non-essential bills, which may include self-storage fees.  As tension builds, individuals may delay making payments even when they can afford them to avoid dealing with the issue. This situation can lead to a harmful cycle of late fees and increasing delinquency.

Present Bias and Holiday Prioritization

Consumer psychology also changes during the colder months.  In behavioral economics, this is called “present bias,” where individuals prioritize short-term pleasures over long-term responsibilities. The importance placed on tangible, immediate rewards—like buying gifts or spending time with family—can outweigh the perceived importance of paying for services like self-storage, which may feel abstract or distant.  This short-term mindset can lead to delinquency as consumers push non-essential bills like storage fees to the bottom of their priority list.

Seasonal Factors Contributing to Delinquency

Weather-Related Complications

The harsh weather conditions during the fall and winter can indirectly contribute to delinquency. Snowstorms, icy conditions, and other severe weather events can disrupt mail delivery services, delay in-person visits to storage facilities, and lead to temporary business closures. For customers who still rely on mail to make payments, these delays can result in late fees and increased delinquency. Furthermore, extreme cold can increase household heating costs, leading to higher utility bills, which may cause individuals to reprioritize their financial obligations.

Seasonality and Reduced Storage Usage

The self-storage industry experiences higher activity during the warmer months, when people are more likely to move, declutter, or take on renovation projects. This seasonality means many tenants who rented units in the spring and summer may have reduced their storage needs by fall or winter but have not yet closed their accounts. These renters may deprioritize paying for their storage units, seeing them as an unnecessary expense as the year progresses, leading to increased delinquency.

Also, tenants may be less likely to visit their storage units during the colder months, especially if the items stored are not seasonally relevant (e.g., summer sporting equipment and gardening tools). Reduced visits to storage facilities can result in a psychological disconnect, where tenants forget or deprioritize paying for units they are not actively using. This sense of disconnection can contribute to delinquency, as the storage unit becomes “out of sight, out of mind.”

Strategies to Combat Delinquency

Prevention:  Stop it before it Starts

Self-storage owners can proactively prevent delinquency by establishing a solid foundation in their client relationships. The lease agreement is a vital tool in managing tenants who fail to make payments. Throughout the rental process, it’s crucial for facility staff to effectively communicate the lease terms and the repercussions of late payments, promoting accountability and comprehension. Upon lease signing, gathering precise contact details (including preferred email and phone number) and securing permission to send texts is paramount. Moreover, fostering a positive rapport with tenants from the outset can encourage punctual payments and offer support when collection efforts are required. By taking these proactive measures, owners can create a positive and smooth rental experience for themselves and their tenants.

Regular Communication

Sending invoices to customers before the due date helps remind them that they have a bill to pay. Utilizing the facility’s management software, these reminders can be delivered via automated phone calls, text messages, or emails. Since each customer has different contact preferences, multiple communication methods increase the likelihood of on-time payments. Even if the account is set to autopay, an invoice can confirm that all credit card information on file is accurate and ready for the upcoming due date. These reminders also inform customers about the consequences of delinquency, including the late fees outlined in their signed lease. We see a direct increase in payments on days when emails and texts are sent to customers.  

Make it Easy to Pay

Encouraging customers to enroll in automatic payments can significantly reduce delinquency rates.  By increasing autopayment enrollment by 3.9% from 2023 to 2024, StoragePRO Management saw a 1.3% decrease in delinquency.  Automatic payments help reduce delinquency by removing human error and making payments consistent and reliable. When tenants enroll in auto-pay, they are less likely to miss payments due to forgetfulness, shifting priorities, or financial stress. Our internal data shows that customers enrolled in autopay stay four to six months longer than others and are less sensitive to price increases.

Training staff to actively promote auto-pay during customer interactions, especially move-in and billing inquiries is essential. One effective tool our managers have in their toolbelt is the ability to waive late fees for customers who enroll in autopay. Including a step-by-step explanation of the auto-pay setup in the welcome materials for new customers can also effectively communicate the advantages of auto-pay. It can also be set up as the default payment method during the rental process, allowing customers to opt-out if they prefer manual payments.

A call center can help self-storage tenants pay their bills and avoid delinquency. With real-time assistance, tenants can quickly resolve issues or clarify billing details, reducing payment delays. Because call centers are available even when the facility is closed, they can accommodate tenants with busy schedules and ensure payments can be made anytime.

Early Payment Incentives

Operators can also offer early payment incentives to encourage timely payments.  We allow customers to prepay for months in advance.  We have also successfully run a “buy one get one” promotion, where customers are offered a free month for every month they pre-pay for up to one year.  This type of incentive can stave off delinquency by ensuring immediate payment.

The Financial Benefits of Reducing Delinquency – Unfreezing Cash Flow

Delinquency leads to potential revenue loss for facility owners and can have a cascading effect on operational efficiency and profitability. Reducing delinquency offers significant financial benefits, particularly by enhancing cash flow, and is one of the first line items we address when assuming management of a property. In one recent example, by promoting and improving enrollment in autopayments, we moved a client from a 12% delinquency rate to 7%, leading to an annual increase of $7,000 in cash flow.

Lower delinquency rates also reduce the operational costs of managing late payments and pursuing collections. Collecting overdue rent often involves sending reminders, contacting tenants, and potentially initiating legal action or auctioning off units. Each step incurs labor, materials, or lost time costs. Additionally, the time spent on collections detracts from more productive activities. By reducing delinquency, owners can streamline operations and focus resources on enhancing customer service and facility management rather than chasing unpaid bills.

Avoiding the Auction Process

Owners who successfully reduce delinquency can avoid the costly and time-consuming auction process. Auctions require significant administrative effort, including advertising, compliance with legal regulations, and logistical management, and often, the amount recovered does not exceed the amount owed.

While owners might wish to avoid the auction process entirely, it remains an unavoidable aspect of the industry. However, partnering with a third-party management company can elevate this process. These companies possess the legal expertise to ensure auctions comply with local, state, and federal laws, assuming all associated risks. Their extensive experience means they have established systems for conducting auctions efficiently. Additionally, their scale allows them to secure better rates for online auction platforms, which helps automate and improve outcomes for owners.

Enhanced Customer Retention

Reducing delinquency also positively impacts customer retention rates. Satisfied customers are likelier to remain loyal and continue renting units, an essential part of maintaining steady revenue. Customers who feel valued and efficiently manage their payments are less likely to seek alternative storage solutions. This increased retention stabilizes income and reduces the costs associated with acquiring new customers, making it financially beneficial for owners to invest in strategies that reduce delinquency.

Conclusion​

Reducing delinquency has multifaceted and significant financial benefits for self-storage owners. By understanding the unique challenges during the fall and winter months, businesses can mitigate delinquency and maintain more substantial cash flow during these slower seasons.

Partnering with a third-party management company offers significant benefits for owners seeking assistance dealing with delinquency and other operational concerns. These companies bring industry expertise and knowledge, optimizing operational efficiency, marketing strategies, and revenue management, which leads to higher occupancy and retention rates.  They handle day-to-day tasks such as staffing, HR management, customer service, accounting, and maintenance.  Additionally, they provide advanced technology solutions for seamless online reservations, payments, and facility monitoring, enhancing the customer experience. They also have access to broader market insights and economies of scale, reducing costs and improving profitability – all while freeing up the owner’s time for other investments or personal interests.

Capitalizing on Trends to Plan for the Future

The start of a new year signifies a time of reflection and an opportunity to plan for the future. It is an ideal time to assess what went well and determine how to achieve business goals in the new year.

Expected Challenges in 2024

 The commercial real estate market in 2024 will undoubtedly face ongoing challenges.  Political unrest will be a recurring concern that is expected to carry into 2024.  Accompanied by a chaotic global economy, commercial real estate owners will continue to feel the impact.  Further, business owners will be confronted with finding reliable, skilled workers as the labor shortage continues. Interest rates and inflation will afflict owners, investors, and developers across the country producing a standoff between buyers and sellers.  To add to this, the US will again be facing a housing shortage.  The shortages, now reaching over 5 million units, have increased the cost of living resulting in more labor shortages and migration.  Individuals will be forced to move away from urban markets into smaller, more affordable sub-markets.

Capitalizing on the Challenges

 All is not lost if capitalized upon, some of the challenges could benefit storage owners.

Leveraging the opportunities will require owners to assess their property based on the predicted trends for 2024, and the ability to respond to them. Little can be done to control political unrest or the global economy, but utilizing a well-planned approach to what can be controlled will increase the owner’s likelihood of success. This is best achieved by looking at the total property performance and identifying systems to become fiscally fit.

Using intentional and targeted planning to address each trend will allow owners to recognize and regulate their response to business planning in 2024.

Developing a Staffing Plan

 Staffing is an ongoing responsibility of all business owners.  The task of finding and retaining dependable employees is a major concern.  It can be overwhelming for a small business owner to respond to staffing changes.  This is why developing a staffing plan to offset the ongoing labor shortage is a necessary part of the planning process.  Designing a plan can be broken down into two main concepts: the business goals and the staff needed to achieve them.

When considering the goals of the business, ask the following questions:

• • What work needs to be done to attain the business goals?

  • How many people are needed to achieve the business goals?

  • What are the skills necessary to fulfill the business goals?

When considering the current staff, ask the following questions:

• • Can the current staff support the work that needs to be done?

  • Does the current staff have the skills to accomplish the business goals?

  • Can the current staff able to support the business goals and still provide customers with a positive experience?

Start with determining what are the goals of the business:

• • Is there a plan to develop, acquire, or expand?

  • Of the current staff, who can help the business meet the goals?

  • How many additional staff members would be required to meet the goals?

  • What staffing changes could occur in 2024 that would impact the goals?

When assessing the current staff, pay attention to low performers and those who may incur a life change, as both can impact turnover rates and leave owners with a staffing deficit.

Once the business goals have been identified and consideration is given to the current staff, the two are combined to develop a staffing plan. Successfully planning for staffing changes requires the collection of trend analysis data.  This can be overwhelming for business owners specifically when sourcing and interpreting the data.  Many storage owners have turned to management companies to collect and analyze the data and manage staffing for the business.  Management companies specialize in understanding the trends and developing a proactive approach versus reacting after the fact.  They can track hiring/retiring patterns, turnover, and market demographics thereby taking the burden off of the owners.

Understanding the Financials

Growth of any business requires stability, sales, and profits.  Completing a careful analysis of finances will reveal areas of inefficiencies and the potential for growth.  Assessing performance over the past 12 months is a reliable place to start.

While reviewing the financials from the previous year, ask the following questions:

• • Was the business profitable?

  • What can be improved?

  • Are there any outliers in the financial reports?

If the business was profitable, continue the analysis to include operational efficiency. This occurs when individual line items are evaluated for return on investment. Consider this, if sales can be maintained or increased with fewer overhead costs profits will rise.  Owners should critically look at each expense to determine its overall impact on revenue.  Further, they should distinguish where money should be allocated for the highest return on investment.

This process is referred to as revenue management. Budgeting, rate increases, promotions, payroll, and all other line items are studied to make the best fiscal decision and manage revenue.  The process can be complex, especially after a turbulent fiscal year, and with the continued unrest in both the macro and micro economy, forecasting can be difficult.  Owners who choose to work with a management company can take advantage of “business intelligence”.

Business intelligence uses data from multiple properties and then compares the results to a larger portfolio. It utilizes trend identification technology and proactively adjusts to the market.  When choosing a management company look for one with a large enough portfolio to identify trends, yet small enough to directly work with owners.  This allows owners to enjoy the benefits of business intelligence without being just another number.

Strong Digital Presence

Each year we become a more digital society and business owners need to respond by using technology to advertise to new customers. For example, when considering predicated migration, having a strong digital presence is more important than ever.

Secondary and tertiary markets are expected to welcome new residents who are trying to avoid the higher expenses seen in urban markets.  These newcomers will rely on the internet to guide their move and make financial decisions.  Over 90% of people currently use the internet to perform research on how to spend their money.  Close to 80% of people will follow through with their purchase.  This alone makes the case for having a strong digital presence. No business owner can afford to miss out on 80% of their customers.

Some owners have opted to pool resources to develop a less expensive web presence.  Although cost-effective, the drawback is seen during internet searches.  Some digital presence is indeed better than no digital presence, but value is realized in the generation of new business.  Using a management company that provides brand recognition, online advertising, and a strong digital presence lets owners compete against large national brands. Simply put, the customer needs to know the business exists before they can rent a unit, therefore the more visible the business is online, the greater the likelihood of obtaining new customers.

Planning for Success in 2024

By prioritizing the process of setting business goals, developing a staffing plan, reviewing financials, and increasing digital presence, the opportunity for success in the new year increases substantially.  Part of the process should include investigating the cost and opportunity for return if business management was outsourced to a professional. Management companies should be able to provide owners with a detailed plan and outline the financial advantages for the associated cost.  Whether the plan is to grow or generate more revenue, it is worth the research to see what options are available.

Now is the time to plan for success in 2024. Capitalize on the predicted trends for the new year, explore the advantages of working with a management company, and find ways to attract new customers.

Team Training Strategies for Employee and Business Success

In the self-storage industry, the role of a manager is both critical and complex. Unlike traditional retail or service industries, self-storage managers must balance customer service with facility operations, marketing, financial management, and team leadership.

As the first point of contact for customers and the linchpin of daily operations, managers significantly influence the success or failure of a facility. However, without proper training, even the most dedicated individuals can struggle to meet the demands of this multifaceted role. This is why manager training is not just a helpful addition but a strategic imperative.

Why Manager Training Is Essential

Manager training in self-storage is crucial for several reasons that directly impact the overall success of the business. At its core, training develops essential skills for effective management, such as leadership, decision-making, conflict resolution, and strategic thinking.

Leadership training equips managers with the ability to inspire and motivate their teams, fostering a culture of accountability and high performance. Decision-making training helps managers balance short-term needs with long-term strategic goals, ensuring sound choices under pressure. Conflict resolution training provides techniques to handle disputes calmly and effectively, transforming potential disruptions into opportunities for improvement. Strategic thinking enables managers to analyze market trends, anticipate customer needs, and position their facilities for long-term success.

Training also enhances performance across the organization. A well-trained manager boosts team dynamics, leading to better collaboration, higher productivity, and improved customer service. By understanding each team member’s strengths and weaknesses, managers can delegate tasks effectively, creating a more cohesive unit. Additionally, managers trained in operational efficiency contribute directly to the facility’s bottom line by optimizing operations, streamlining processes, and managing resources wisely.

The Role of Training in Employee Retention

Employee turnover is both costly and disruptive, particularly in an industry like self-storage, where knowledge of the facility and customer relationships are key. Manager training plays a critical role in creating a positive work environment that fosters employee satisfaction and retention. Managers who are trained in leadership and communication are better equipped to create a supportive workplace where employees feel valued and motivated to contribute to the organization’s success. By recognizing and rewarding superior performance, providing growth opportunities, and proactively addressing concerns, trained managers reduce turnover and save the organization the costs associated with recruiting and training new employees.

Navigating Change with Effective Training

​The self-storage industry is subject to rapid changes driven by technology, customer expectations, and market dynamics. Effective change management is crucial for ensuring that these transitions occur smoothly and without disrupting operations. Managers must be comfortable with new tools and platforms, such as automated gate systems and digital inventory management. Training ensures that managers can not only use these technologies themselves but also lead their teams through the adoption process.

Market conditions can shift quickly due to economic factors, new competitors, or changes in consumer behavior. A well-trained manager can identify these changes early, adjust strategies accordingly, and keep the facility competitive. As organizations grow and evolve, training in change management helps managers guide their teams through cultural shifts, ensuring alignment with the company’s mission and values.

What Should a Manager Training Program Include?

​A comprehensive manager training program in self-storage should cover leadership, communication, operational management, human resources, and problem-solving skills, especially in technology.

Leadership training should focus on vision setting, motivational techniques, and performance management. This training helps managers articulate a clear vision for their team and facility, provide strategies for motivating employees, and manage performance effectively. Communication training should address upward and downward communication, as well as customer communication. This includes techniques for reporting to senior management, strategies for team communication, and best practices for handling customer interactions.

Operational management training should include financial management, project management, and operational efficiency. Managers must understand budgeting, financial reporting, managing facility expenses, and using tools and techniques to streamline operations. Human resources training should cover hiring, employee development, and legal compliance. Effective HR management is critical for recruiting, developing, and retaining talent while ensuring adherence to employment laws. In addition, written manuals such as Standard operating procedures (SOP) are especially important to create consistency and reference for guidance during or after training.

In today’s rapidly changing industry, problem-solving and technological proficiency are essential. Training should include decision-making frameworks, crisis management strategies, and familiarity with industry tools like property management software and customer relationship management (CRM) systems.

Accommodating Different Learning Styles

​Effective training programs recognize that employees have different learning styles and abilities. To ensure accessibility and effectiveness, training should incorporate diverse teaching methods such as workshops, e-learning modules, and peer-to-peer learning. Interactive sessions, self-paced online courses, and opportunities for collaborative learning cater to different learning preferences, making training more engaging and effective.

Technology can enhance learning experiences through immersive methods like virtual reality (VR) and augmented reality (AR). VR can simulate real-world scenarios, such as customer interactions or emergency situations, providing a safe environment for managers to practice their skills. AR can overlay information on real-world settings, helping managers learn about the physical aspects of their facility in a more interactive way.

Customization options, including self-paced learning and mentorship programs, allow learners to tailor the training to their specific needs. For instance, employees can choose from different learning modules based on their role, experience level, or interests. Offering one-on-one coaching sessions provides personalized feedback and advice, further enhancing the training’s impact.

Ensuring Training Success Through Follow-Up

​To maximize the effectiveness of training, it is essential to include follow-up activities that reinforce learning and measure success. Feedback surveys after training can provide valuable insights into its effectiveness and areas for improvement. Assessment tests help measure knowledge retention and identify where further training may be needed.

Regular performance reviews can link training to actual improvements in job performance, allowing the organization to measure the return on investment (ROI) of the training program. Offering refresher courses ensures that the skills and knowledge gained during training are retained and applied on the job. These follow-up activities are crucial for ensuring that training has a lasting impact on both the individual and the organization.

The Importance of Ongoing Training

​In an industry as dynamic as self-storage, ongoing training is essential for keeping employees up to date with the latest trends and technologies. Regular team training meetings can help keep the team informed about industry trends, share best practices, and provide updates on company policies and procedures. Annual all-hands meetings are an excellent opportunity to bring the entire team together for strategic alignment and team-building activities, reinforcing the organization’s goals and values.

Encouraging employees to engage in self-paced learning through online courses, webinars, or other resources allows them to continue developing their skills at their own pace. This approach supports continuous development, ensuring that employees remain knowledgeable and capable of handling new challenges.

Additional Strategies for Effective Training Programs

​To ensure the success of your training program, it is important to align training objectives with the company’s overall business strategy. This ensures the training is relevant and contributes directly to the organization’s success. Engaging senior leadership in the training program demonstrates its importance and encourages participation from all levels of the organization.

Regularly assessing the impact of training on individual and organizational performance helps justify continued investment in training and identifies areas for further improvement. By measuring the impact, you can ensure that the training program remains effective and continues to meet the organization’s needs.

Conclusion

A well-structured manager training program is not just an educational tool—it is a strategic asset that can significantly enhance the effectiveness of your team and the overall performance of your self-storage facility. By investing in manager training, you are investing in the long-term success of your business, ensuring that your managers are equipped to lead, inspire, and drive your organization forward.

Getting your Facility Rental Season Ready

As the days become longer and the cold winter weather is replaced with warmer temperatures, it is an ideal time for self-storage owners to prepare their facility to be rental season ready. Knowing the steps to take is challenging.  Understanding the market, data, and operational factors that impact rental season will allow you to be prepared for peak season.

Factors Impacting Rental Season

In late spring and throughout the summer months, the demand for self-storage consistently increases.  Driving factors for the increase are relocation, home renovations, change in relationship status, end of the college academic year, and simply running out of space. Understanding each of these factors can allow storage owners to plan more effectively for rental season.

Individuals and families who are planning to relocate will begin the “spring cleaning” process in preparation for their move.  This includes decluttering their home to prepare it for listing and pre-packing items to ensure an easier move.  Often residential agents will recommend homeowners remove excess items to maximize their ability to photograph, market, and show the property. In addition to hopefully a quicker sale, removing excess items assists homeowners by pre-packing possessions that won’t be needed again until after the move.  In either case, storing items before relocation has a significant impact on rental seasons nationwide. This is why storage owners consistently report receiving more calls, internet inquiries, and rentals during the late spring and summer months. 

According to Angie’s List, summer is the most popular time of year for home remodels.  For larger projects, homeowners will look to self-storage facilities to secure their items during the renovation phase.  Depending on the size of the renovation, homeowners could be storing their possessions for anywhere from 4 to 6 months for room-specific renovations or 9 to 12 months for whole-house renovations.

Doyle Law Group reports that divorce rates peak in March and August.  This is due to a variety of factors, but changes in relationship status often result in a change in housing status.  Many divorces create the need to move or sell a home, leaving parties to divorce searching for alternative accommodations for their possessions.  Self-storage can provide a secure space to hold their items during a difficult transitional phase. 

When the academic school year for colleges and universities comes to an end, storage facilities can see an increase in rentals. Although this accounts for a smaller portion of rentals and is geographically dictated, students who attend a college or university further from home choose self-storage as a cost-effective solution for their items during summer break.  Depending on the distance between school and home, self-storage has proven to be a time-saving and economical solution for parents and students. 

There is just no more room. Whether storing business inventory, personal items, or equipment/vehicles, individuals and organizations are looking to self-storage for additional space.  According to the Commerce Institute, on average there are 4.7 million businesses started each year.  For business owners trying to avoid cluttering their homes, needing to store surplus items, and/or searching for a cheaper alternative to retail space, self-storage can save the day and save money when compared to retail space.  Current reports show household size and the desire to acquire more “stuff” are increasing. Together this has created a need for self-storage to hold items that are unable to fit in the primary residence. The Recreational Vehicle Industry Association (RVIA) found that RV ownership has increased by more than 62% over the last 20 years.  Many boat, RV, and vehicle owners feel storage provides a secure way to protect their investment.

Market Considerations

According to Matthews Real Estate Investment Services, the most in-demand cities for self-storage are New York, NY, Houston, TX, San Antonio, TX, Miami, FL, and Phoenix, AZ, and the US Census Bureau notes Texas, California, Indiana, Arizona, & Florida as states that have cities on the top 10 list for fastest growing.  Research by StorageCafe, predicts the self-storage industry to grow by over 54 million additional square feet in 2024. 

Although positive news for storage owners, understanding the dynamics specific to your market is a better approach to track and respond to changes in demand. Begin by looking at your location.  Is the market urban, suburban, or rural?  Is your facility near a military base or college/university?  Are new people or businesses moving to your market, thereby causing it to grow? Each of these factors can impact your rental season and why understanding your specific market is important. 

Further, consider your market conditions, what is the availability of land in your area? Is your market over or under-built in terms of self-storage? What barriers to entry exist for developers looking to build new self-storage? If your facility is in a growing market with high barriers to entry, you will be able to capture more customers and charge them a higher rate. 

Data Considerations

Consumer data allows storage owners to develop a customer profile which can be extremely beneficial in preparing for the rental season. 

Consider what you know about your customers and what you would like to know. Are you currently collecting data on your customers? If yes, use this data to structure a more complete picture of who you are preparing for when rental season starts. Consider providing customers with entry and exit surveys.  They are one of the best ways to identify patterns that can be used to improve operations and gather data.  The surveys do not need to be complex, with just a few simple questions you can gather valuable data.  Typical survey questions inquire about the customer’s demographics, length of rental, reason for rental, preferred methods of contact and/or payment, and other storage needs.  Determine what information is important to you, and create your survey based on this. 

Require your store manager(s) to monitor data on customer trends.  Which days of the week or times of the day are customers contacting the facility? How are customers contacting the facility? Phone calls, internet searches, and/or foot traffic are all great data points that can drive the decision-making process.  Have managers track what questions future customers are asking.  Cost, amenities, requirements, payment options, etc. can all be compiled by your store manager to create valuable insights. If you determine most of your customer traffic comes from internet searches, you can make a better decision when deciding on staffing. 

Data points allow storage owners to be prepared for the rental season because owners can adjust advertising, staffing, pricing, and budgeting allowing the facility to run more efficiently. 

Operational Considerations

Before the start of the rental season, it is a good time for owners to evaluate their operational needs.  When considering staffing, the goal is to ensure you have sufficient coverage for the expected rental season without sacrificing quality. Hiring part-time or seasonal employees may offer a solution, especially if your location has a considerable amount of foot traffic.  If your facility tends to source more customers online, consider utilizing technology to manage them. Meeting the people where they are allows owners to capture more new customers. If surges in the sales cycle have become a hassle, spend some time researching management companies to alleviate the issues associated with the rental season. Third-party managers can be a great solution for owners to retain their assets yet want to defer the responsibilities of cyclical increases in the sales cycle. 

Always consider the customer experience.  If you plan to hire new employees, make sure they are fully trained before they begin working with customers. Investing in training can avoid a loss of revenue in the long run.  Clearly state your expectations and goals and the metrics you will use to evaluate them.  When employing new technology, do a test run as a customer to determine how easy (or frustrating) the technology is to use. Ask the company providing the technology what data they will be tracking and reporting to you.  If you determine third-party management could be a good option, research companies that specialize in self-storage and compare what they offer.  Consider their projected returns, client testimonials, and interest in your facility. If you are not interested in selling, be sure to find a company that plans to manage, not purchase, your property.

Additional Considerations

Check Your Curb Appeal

Although you can’t change your location, you can take steps to make sure your facility presents well to current and future customers.  Work on your facility’s curb appeal, remember first impressions are made in the parking lot. Make sure your location is clean and safe by investing in landscaping and lighting.  Identify any additional safety hazards, such as potholes and/or large cracks. Assess your front office and make sure it is organized and presenting opportunities for increased sales.  Clean, organize, and improve your front office so it is welcoming to customers.  Perform a walkthrough of your facility, perhaps it could use a fresh coat of paint, new signage, or has needed repairs/improvements.  Even if it is necessary to hire contractors to perform these tasks, the investment is money well spent.   

Marketing

Don’t neglect marketing strategies. Check your Google listing and website and update any outdated information. Spending time on your listing will allow customers to find your facility and communicate with your staff more effectively.  Consider starting or continuing a social media campaign. If you do not have a website, create a business Facebook page so local residents can learn more about your facility.  Look to partner with local businesses and establish mutually beneficial relationships. Real estate agents, moving companies, construction companies, boat/RV dealerships, interior decorators, home improvement retailers, furniture stores, and/or colleges and universities could all prove to be strong business allies.  

Summary

Getting rental season ready can be achieved by first looking at what impacts your local market and then identifying your driving factors for demand. Review what you know or need to know about your customers.  Be prepared to balance the increase in rentals with additional staffing, new technology, or working with a third-party manager so the customer experience is not sacrificed.  Put your facility’s best foot forward this rental season and become rental season-ready!

BETTER Business™ for Total Property Performance™

StoragePRO Management’s BETTER Business model™ for Total Property Performance™ unleashes proven strategies for success.  On average, StoragePRO clients typically see a 22% increase in net operating income in their first year, and 14% each successive year, increasing the property’s value and available cash flow. By joining the StoragePRO family, you have instant access to the tools, systems, and technologies needed to allow your business to thrive. 

Questions Every Storage Owner Should Ask

Opportunities are often hiding in plain sight. We have developed a business model we call BETTER Business™ to identify these opportunities and be able to deliver success for owners. We use this owner-centric approach of systems, technology, and team to maximize net operating income (NOI) and property value.

Here are some essential questions to consider about your property:

1. What is happening with EVERY unit?

This begins with a complete audit of each unit. Inspecting each to confirm its size, verify whether the doors and hasps are in proper working order, and assess if “vacant” units are truly vacant. This requires a systematic approach to ensure data is accurate, repairs are notes, and no improper use is occurring.

When clients sign with StoragePRO, a district manager who’s is assigned to your property will complete the unit-by-unit audit. They will be joined by one of our maintenance professionals to evaluate accurately any repairs that occur and steps that need to be taken. Our professionals have seen everything from tenants living in units, illicit businesses operating out of a unit, and improper “vacant” units created with under-the-table deals.

A detailed report and thorough understanding of the property and necessary actions will be provided by our team. The audit also includes the status of every tenant account to identify and begin corrective action for delinquencies.

2. Is your team performing?

Steve Mirabito, owner of StoragePRO, likes to say, “Stores don’t compete – their managers do”. A store manager’s day-to-day decisions and ongoing competency can make or break your business. Managers should understand the value of customer service and sales and know how to excel at both. Taking the time to perform a complete evaluation of management and staff and identify areas for growth will allow your business to succeed.

We perform this evaluation for clients and take the time to get to know your team in order to maximize their performance and potential. We will also analyze your operations to determine whether your store is staffed appropriately. To streamline the training process, we created StoragePRO University, a program to help managers execute proven strategies and build connections with industry peers. Led by our executive leadership team and district/regional managers, the course teaches the mix of technique and accountability that prepare store managers for peak performance.

Improperly trained employees can have harm the success of your business. They can negatively impact coworkers, drive away customers, and create unfavorable situations. These should be address promptly, whether through training and improvement processes, or other appropriate actions.

3. Are you compliant?

Sometimes the issues you’re least aware of can be the most devastating. Out-of-date or inadequately written lease agreements can cause serious legal liability for your self-storage business. With the ever-changing legal environment, trying to stay up to date with local, state, and federal laws can be overwhelming.

​Our clients can utilize our team to audit every single tenant lease agreement for your property to ensure accuracy and total compliance. This includes verifying every name, address, start/end date, payment status, and compliance with lien laws. Where needed, we will arrange with your tenants to sign an addendum or new agreement to bring the lease into compliance.

Joining StoragePRO Management means you can benefit from our team of experts who are fully versed in the laws and regulations that apply to your business.

4. Are you auditing losses?

Unfortunately, we see it all too often: Tools, equipment, supplies, and even furniture can magically seem to walk out the door and into the possess of someone else.

Loss prevention begins with a thorough Personal Property Inventory to understand what you have at your site. Every site we manage obtains a complete catalog of every computer, desk, coffee maker, weed trimmer, light bulb, and anything else your business has purchased for its operations. These audits sometimes uncover incidents of theft that might have otherwise gone unnoticed. The impact of the missing materials and equipment is not limited to the cost of replacing them – but the resulting impact of not having the items on hand when needed.

Ideally, this is not the case for your property, but this accountability allows for better business control and reduces expenses.

5. Are your daily operations efficient?

Do you have a standardized schedule? What does your customer traffic look like? How is your online presence? All of these questions are a good place to start when it comes to operational efficiency. No two sites are the same which is why is it important to analyze each site you own to determine efficiency and necessary changes.

At StoragePRO, we manage over 150 properties in 10 states allowing us to have a vast knowledge of solutions to mee the needs of your property. We understand varying market conditions, and we have the insight into the traditional best operating procedures for staffing, office, and gate hours. For example, some business could benefit from 24/7 gate access while at other locations this could invite unnecessary trouble.

​Completing a comprehensive operational review, conducting a business analysis, and optimizing your facility for productivity and profitability are fundamental steps for success.

​Were you able to answer all 5 questions?

Do you have more questions you want answered?

A PRO Forma is a good place to start to identify proactive steps to achieve Total Property Performance™. StoragePRO Management offers this no-cost, no-obligation analysis to allow you and your business to take the first step toward increased income and value.