INSIGHTS

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.