It’s an exciting time for self-storage development! Ground-up sites and conversion projects are opening across the globe as more investors join the industry and existing owners expand their portfolios. But as anyone who’s built storage facilities can attest, the endeavor is both challenging and rewarding, perhaps in different measure during the pandemic. There are many critical steps, each of which must be handled prudently, from feasibility and site selection all the way to grand opening.

In this thread on Self-Storage Talk, the industry’s largest online community, an owner walks you through his development journey, highlighting every aspect of the project and including photos. Others are chiming in with questions and sharing their own stories. More than a year in the making, this thread has nearly 100 comments! See what you can learn from others’ experiences and apply to your own project, or jump in with personal advice.

Self-storage is consistently ranked by analysts as offering one of the best investment returns in commercial real estate. As a result, new investors clamor to get their foot in the door, while those who are already in the business look to solidify their standing. Whether you want to build a new project, convert a non-storage structure or expand an existing facility, there’s a great deal to consider. With so many variables, it can be difficult to make decisions, which is why the best way to begin and gain confidence is with a feasibility study.

Self-storage isn’t like any other industry (hospitality, office space, medical buildings, etc.). It’s unique, with its own regulations, terminology, nuances, financial strategies and operational standards. Don’t try to go it alone or learn on the fly. Doing so may only damage your investment results. Find yourself a good consultant with actual storage experience and invest in a solid feasibility report.

Market Concerns

Self-storage is need-driven and recession-resilient, but that doesn’t mean you can build wherever you want. You must pay careful attention to what’s occurring in your target market as well as other dynamics that could negatively impact investment outcomes. Let’s look at why feasibility is important and how it can guide your decision-making.

A feasibility report is a market-specific study that provides a professional opinion on the financial viability of a proposed self-storage project. A good one will answer the following:

What are the area demographics? Your report should shed light on trends within the market. You need to know whether the population is increasing or decreasing as well as the average number of people per household, median income, number of vehicles per household, etc. These all influence your product and service mix.

What competition will you face? This should only include facilities that are class-C or better. Anything lower would be like a McDonald’s vs. a high-end restaurant. Both are nice and have their patrons, but they’re an entirely different product. Any new self-storage project should be built and operated to attract market share, capturing and retaining a substantial portion of an inferior operator’s clientele.

What’s the demand? The current national average is about 6 square feet of self-storage per person; however, this number differs in every state. Your feasibility study should look at national and state averages to help determine if there’s enough unmet demand in your target area. This number doesn’t make or break any project, but it’s one you should consider.

What unit sizes should you build? Your report should identify the proper unit mix for the area, one that reflects the needs of the market. Do not use a “banker’s mix” approach; and don’t fall in love with a certain rental rate per square foot, which is often much higher on smaller units. Though it may look great on paper to include a lot of small spaces, you’ll wind up building too many and collect nothing when they sit empty. In any given market, there’s only so much need for a specific unit size, which is why you must build based on demand.

What products should you offer? If you’re going to enter a market, you need to know what services and amenities will attract customers. Things to consider include climate- or temperature-controlled units; enclosed, covered or outside vehicle storage; and profit centers like truck rentals, wine storage, records storage, mailbox rentals and more. Your report should make recommendations in this area.

What level of security is necessary? Considerations include video cameras, individual door alarms, magnetic locks, mobile access, motion sensors and more. All of these options need to be examined in the market.

How should units be priced? You need to know what your rental rates should be when you first open and how to structure increases. One of the beauties of self-storage is you can raise rates as often as necessary with only 30 days’ notice. Your feasibility report should consider competitor pricing, demand and service offerings, and outline what you can reasonably charge for your own product.

Investment Concerns

In addition to identifying what’s occurring within your desired market and which service options make sense for your potential site, your self-storage feasibility report should help you address investment-related considerations. The goal is to determine whether moving forward makes smart financial sense.

Lease-up period. The report should help you forecast a breakeven point for your investment. It should also help you account for all the necessary capital leading up to breakeven.

Operational challenges. It should help you determine if you’re ready to take on the marketing and management aspects of the business or if outsourcing makes more sense. In addition to what you can glean from the analysis, consider consulting with a third-party management company, which can give you more specific information and help you choose the best path.

Budgeting. Your feasibility study should help you crate a line-item budget that takes you through “maturity,” which is typically when the facility hits 85 percent to 90 percent occupancy. This is the point at which your construction and mini-perm loans will be done and it’s time to get a permanent loan. The budget will help you forecast exactly which month you’ll be able to cover the debt service. You can also use this initial plan as the property budget once you receive your Certificate of Occupancy.

Important note: Never use a budget based on percentages vs. hard dollars. While materials costs are essentially the same everywhere, your land cost and rental rates will be different in each market. For example, a 10-by-10 unit on the East Coast may get $210 per month, while the same space in the Midwest may be $79. If you use percentages rather than dollars, your budget won’t reflect the nuances of the market.

Cost of construction. This should also be a line-item budget and will differ depending on the type of facility you expect to build. Will it be single- or multi-story, or both? Will units be drive-up, climate-controlled or a mix? Will you offer boat/RV storage, wine storage, etc.? Every project is unique, and the construction budget should be based on the project type and scope.

If you’re considering the conversion of an existing structure or buildings, you may see significant savings in construction costs. However, you also need to estimate other expenses for things such as HVAC, electrical work, roof repairs or any other necessary upgrades. There are times when the cost of “updating” a building may be too high or the orientation of the existing structure won’t be ideal for project flow, in which case it might prove beneficial to tear it down and rebuild.

Using the Report

Your completed feasibility report should give you a good idea of what to expect if you move forward with your self-storage development plan. Once you’ve read it thoroughly, schedule a time to review it with the provider to ensure all your questions are answered and you’re able to make a yes or no decision regarding the viability of the project.

If the results aren’t what you were expecting, do not force a square peg into a round hole. Move on and look for a better option, possibly with the help of your consultant. Yes, this process takes a lot of work and time; however, the returns on a project done correctly can, in many instances, be larger than you may have anticipated.

Stephan Ross is owner of Cutting Edge Development LLC and a managing member of Cutting Edge Self Storage Management & Consulting. He’s been in the self-storage industry since 1984 and has performed hundreds of feasibility studies in the United States and Canada. During his career, Steve has directed the development and daily operations of more than 2 million square feet of storage space. He’s been a contributing writer for industry publications and a featured speaker at self-storage events. To reach him, call 801.273.1267; email [email protected].

The Small Business Administration (SBA) has released new directives to streamline the forgiveness process for self-storage and other businesses that received Paycheck Protection Program (PPP) loans of $150,000 or less. It also launched an online portal that allows borrowers to apply for forgiveness directly through the agency rather than their lender.

The PPP was launched last year to help business owners who were negatively impacted by the COVID-19 pandemic. It was designed to forgive loan repayment as long as borrowers adhered to the terms and conditions, such as using the funds to maintain payroll, pay rent on a business building or make company mortgage payments.

The revised forgiveness process includes a COVID Revenue Reduction Score that can be used to document the required reduction for second-draw PPP loans. In addition, the SBA extended the loan-payment deferment period for borrowers who make an appeal with the SBA Office of Hearings and Appeals (OHA). Borrowers won’t be required to make payments on their PPP loans while the OHA considers their case, as long as they filed in a timely manner.

The online portal allows lenders to review forgiveness applications and submit their decision directly to the SBA. Previously, they had to collect applications on their own and send their decisions to the SBA for approval. Thus far, more than 600 banks have opted into the direct-forgiveness program, allowing more than 2.17 million borrowers (accounting for about 30% of loans) to apply through the portal, according to an SBA press release.

Using the portal isn’t mandatory, however. If a bank doesn’t opt in to the system, borrowers must continue to submit loan-forgiveness applications directly to their lenders, according to a source.

“The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses—including many sole proprietors—who used funds from our PPP loans to survive the pandemic,” said SBA Administrator Isabel Casillas Guzman. “The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.”

Thus far in 2021, the SBA has approved more than 6.5 million loans, totaling more than $275 billion. In all, 96% of loans have gone to businesses with less than 20 employees compared to 87% in 2020. The average loan size this year has been about $42,000 compared to $101,000 in 2020, the release stated.

Sources:
Forbes, Borrower Friendly PPP Loan Forgiveness Regulatory Changes Provided by the New SBA Regulation
Small Business Trends, PPP Loan Forgiveness Portal Now Open
SBA, PPP Loan Forgiveness
SBA, SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal

A U-Haul self-storage facility in Binghamton, New York, was damaged last week after a car crashed through the fence and slammed into one of its buildings. The incident happened at 262 Front St. at about 1:30 a.m. on Friday. Three 8-by-10-foot units were affected, according to the source.

A woman who lives across the street told investigators she heard a loud noise. When she looked outside, she spotted a silver or gray car next to the building. The male driver looked underneath the vehicle for a few minutes, then got back into the car and drove away. The vehicle had front-end damage, she said.

Police later found the car and driver, who was taken to a local hospital for evaluation. Though the accident is under investigation, it’s unclear whether files will be charged in connection with the crash.

Established in 1945 and based in Phoenix, U-Haul owns and manages more than 72 million square feet of storage space nationwide.

Source:
WNBF, Binghamton U-Haul Storage Facility Damaged in Smash-and-Run Crash

Around a million people a year rent a moving truck when relocating. Capturing a piece of that market boils down to one simple thing: Thinking outside the box.

While advertising to prospective self-storage tenants isn’t always easy, custom-branded rental trucks have proven to be a great resource for company recognition. These vehicles are seen on the road and attract attention, putting you top-of-mind for customers when it comes time to rent a storage unit or make a move. There’s no question that when marketed correctly, a branded moving truck will help you gain new tenants. Consider the following advice to make the most of your efforts.

Focus on Design

Eye-catching graphics on the outside of your self-storage trucks create a personalized, moving billboard. The vehicle advertises your facility anywhere and everywhere it happens to be, day and night, 24/7. It’s large and noticeable, and a constant promoter of your storage business.

Vehicle wraps give your company the best market exposure at a low cost. In fact, one wrap can generate up to 70,000 daily impressions! Viewers recognize a brand on a wrap advertisement 15 times more than on any other ad type. Most important, 30 percent people base their buying decision on seeing vehicle wraps, according to the Outdoor Advertising Association of America.

Designing custom graphics is the most exciting part of having your own self-storage rental truck. The art is so dynamic, and the possibilities stop only with your imagination. You could wrap your truck from headlights to the back ramp or go with a more conservative design. Graphic designers can help bring your vision to life. Moreover, wraps can fit just about any budget.

Use QR Codes

When quick-response (QR) codes debuted in 2011, they didn’t gain much traction. They were such a cool concept, but we didn’t have the right technology to leverage them. Now, they’re being used more often. These scannable, 2D codes can prompt a visit to your website, social media profiles or any hyperlink you use for your business. You can fulfill a variety of objectives such as linking to a landing page, directing users to leave you a review, accessing a special offer, viewing your Google Maps location and more.

One of the most obvious places to put a QR code is on your self-storage moving truck! You can easily add it to your graphics. You can also add it to your business cards, postcards and print advertising. It can be a tool to bridge your online and offline marketing.

Optimize Your Google Listing

Google My Business (GMB) is a free tool that can help self-storage facilities show up in local searches. Creating a listing is simple and will offer searchers detailed information such as property location and operating hours. Adding products and services like truck rental is useful for ranking in relevant searches, so be sure to add it to your listing. A complete description will appear when the user clicks on a product. Google might also link to your products from the section of categories.

It’s also important to upload photos to your GMB listing to showcase your truck. Adding pictures and videos regularly will show Google you’re active, and it’ll rank your business higher in search results. If someone is looking for a rental truck, Google might even recognize and show your vehicle.

Lean on Your Team

The easiest, fastest way to implement your truck-rental marketing strategy is through your self-storage staff. When they answer the phone, they can say something as simple as “ABC Storage! Home of the free rental truck! How may I help you?” After they determine the tenant’s move-in date and unit size, they should ask how the customer plans on moving into the facility. This is a great closing tool. They can reveal when the truck is available and reserve it for the customer immediately.

Create marketing materials with pictures of your rental truck. Feature your vehicles on all print materials including business cards, fliers and local advertisements. Provide some of this collateral when networking with local businesses, which is another great way to market your offering. Ask them to share the info with any customers who might need a truck. They can also notify other companies that your truck is available for commercial use. The more people who know about your vehicle, the better the word-of mouth.

Get Noticed

Trucks left hidden at the back of your facility are a wasted opportunity. It’s like never turning on your facility lights and signage at night. Your truck is a billboard that should be parked where everyone can see it. If your site isn’t on a main road, park your truck in a location that can direct people to you. You can do this by exchanging use of the truck for parking spots at local businesses. Taking your truck on errands around town creates more visibility as well.

Charities also have various needs for a rental truck. Offer your vehicle to nonprofits and other organizations for community goodwill. It might even end up on their social media or the local paper.

There are many ways a rental truck can provide exceptional marketing and advertising opportunities for your self-storage business. As with any profit center, seek the services of a specialist in this area to guide you. Just as you’re committed to providing your tenants an exceptional experience, rental-truck specialists will help you maximize your success with this unique service offering.

CJ Stratte is the marketing director for On The Move Inc., which offers a complete rental-truck program to the self-storage industry. Working at a storage facility has given her insight to the truck-rental experience, and she welcomes the opportunity to share tips for a successful program. To reach her, call 800.645.9949 or email [email protected].

The Self Storage Association of the United Kingdom (SSA-UK) has partnered with government and law-enforcement agencies in an effort to reduce the amount of counterfeit and illicit goods stored inside self-storage units by tenants. The campaign includes a code of practice to help facility operators identify illegal goods and suspicious individuals, and help officers seize goods before they enter the marketplace, according to a press release. It’s being promoted with the verbiage “The Tick Box: Keep It Real. Keep It Legal.”

As part of the effort, SSA-UK has partnered with the Intellectual Property Office (IPO), the U.K. government entity responsible for intellectual-property rights including copyrights, designs, patents and trademarks. The national and London Trading Standards groups, which ensure consumers are protected from unfair trading, are also involved.

Self-storage operators can participate in the program for free, receiving a Tick Box logo and code of practice for display. The materials are designed to discourage criminals and give confidence to law-abiding tenants, demonstrating the operator’s commitment to keep their facility and community safe. In addition, all participants will ask their customers to agree to the program standards when they sign their lease agreement.

Trading officials are also advising self-storage operators on their legal responsibilities in relation to copyright, product-safety infringement and trademark, and providing the appropriate training on regulatory requirements, according to the Tick Box website.

“Unsafe and illicit goods, such as counterfeits, create real social and environmental harms in our communities, and criminals have used self-storage units as part of their activities,” said Tim Moss, CEO of IPO. “Self-storage providers signing up to the code of practice will now have absolute confidence [that] they are doing everything possible to deter criminals who target them in this way, while reassuring legitimate customers that their belongings are in safe hands.”

Thus far, 45 U.K. self-storage companies representing a total of 343 facilities have signed up to participate in phase one. More than 1,200 facility employees have received training. Targeted enforcement action related to the effort “has resulted in the seizure of thousands of counterfeit items” estimated to be worth millions of pounds, the release stated. The campaign will continue to be rolled out nationwide, officials said.

“The self-storage industry welcomes the opportunity to work with Trading Standards and local enforcement agencies to identify and deter criminals looking to use the industry for storage of unsafe and illicit goods,” said Rennie Schafer, CEO of the SSA-UK. “Many of these goods can cause real damage to the local communities that the self-storage businesses are part of. As an industry, we want to do all we can to eliminate such activity from our stores and the community as a whole.”

Established in 1995, the SSA-UK is the principal trade association representing self-storage operators and suppliers in the U.K. It has approximately 440 members.

Sources:
Intellectual Property Office, Cracking Down on Criminals Who Target Self-Storage Industry
The Tick Box, Website

Charity Storage, a nonprofit that serves the self-storage industry, has reorganized its operating structure and changed its key leadership. Kerry Henriksen, executive director, and Mariela Pattinson, director of marketing and development, have resigned. Mario Macaluso, a board member and industry veteran, will serve as program manager to educate and enroll self-storage operators in the program, according to a press release.

As part of the transition, Charity Storage headquarters will be housed within the Phoenix corporate office of OpenTech Alliance Inc., a provider of self-storage kiosks, call-center services and other technology. OpenTech has recruited dedicated staff to provide infrastructure, accounting and marketing to support the organization.

“Today’s announcement marks a reorganization that will position Charity Storage for continued success, building on the legacy the existing team has worked so hard to create,” said OpenTech CEO Robert Chiti, who’s also chairman of the nonprofit’s board of directors. “These shifts represent a critical step to streamline our operations in a way that will enhance our ability to maximize funds raised for local charities and achieve our goal of becoming a self-sustainable organization. In addition, we have strengthened our ability to support the success of participating self-storage operations.”   

During their tenure, Henriksen and Pattinson built strategic partnerships with industry members, helped establish and improve organizational processes, and dedicated countless hours to the advancement of charitable causes nationwide, the release stated.

Macaluso is the founder of Best Self Storage Insurance and a founding member of SBOA Tenant Insurance. “Though my time on the board has been limited, my passion for Charity Storage was immediate,” he said. “As a member of this community, I know how fortunate we are to operate in a ‘recession-proof’ industry. Charity Storage is an easy way for operators to pass that good fortune along and have a direct impact in the communities and to the local causes that matter to their team.”

Charity Storage uses self-storage auctions to raise money for charitable causes. Participating facilities establish donation drop-off centers at their sites, and engage their community to collect donations and raise funds for local nonprofits through their storage auctions.

One of the most damaging myths about corporate branding is it’s solely a marketing function. This couldn’t be further from the truth. Your self-storage brand isn’t just pretty colors and a nice logo. A good brand increases the value of your company, provides your team with motivation and makes it easier to acquire new customers.

Branding is actually the act of communicating and positioning your company. It’s how you’re perceived by customers. Consider this quote from Amazon Founder Jeff Bezos: “Your brand is what other people say about you when you’re not in the room.” What do you think people would say about your self-storage business?

The Benefits of Branding

In the self-storage industry, some professionals think there’s no reason to build a brand. No one rents a storage unit because they remember who you are. Storage is just a commodity. Well, I’m here to tell you those ideas are wrong. Here are some reasons why building a brand for your business is important.

• It improves recognition. The visual elements of your brand are the “face” of your company. Your logo is the most used graphical symbol. A professional one is simple enough to be memorable, but powerful enough to present the desired impression.
• It creates trust. A professional appearance builds credibility. People are more likely to spend more and purchase from a business that appears polished.
• It inspires staff. When employees understand your mission and reason for being, they’re more likely to feel the same pride and work toward the same goals.
• It generates new customers. Branding enables your company to get referrals. Would it be possible for you to tell a friend about the new shoes you love if you couldn’t remember the brand?
• It supports advertising. Your brand is displayed across every piece of publicity—both the medium chosen and the targeted demographic. It’s about consistency.
• It builds financial value. A strong brand or just a cohesive presentation gives the perception of guaranteed future business. Branded companies are perceived as more valuable. The greater a company’s desire to build brand value, the better the financial return.

A Solid Foundation

Again, a brand is more than just a logo. Creating a true brand means developing your company purpose, position, promise, personality and identity. As you begin yours, here are some questions to ask yourself:

• Your purpose: Why do you exist? What pain points do you solve?
• Your position: Who is your ideal customer or target audience? Gender? Age? Do they have specific personality traits?
• Your promise: How do you make your customers feel? Why do they trust you?
• Your personality: If you could give your brand a certain set of human characteristics what would they be?
• Your identity: What colors inspire you? What font speaks to your brand?

These are just a few of the questions you need to answer to begin building a solid foundation. A brand isn’t something that can be built in a day. It takes time and thought. After all, it’s put on display every time you advertise your business. It’s on your signage, website, business cards and more. It’s that consistency that builds recognition within your community.

The Creation Process

You don’t build a brand just because you’re told you should. You do it because it adds value to your business! So, let’s get started. The following can help even the most novice of self-storage owner create a brand that stands out from the crowd.

Know your typical demographics (aka buyer personas). Make a list of the ideal traits your customers should have. These might include age, household income and hobbies. For example, if your business is boat/RV storage, your target audience is going to be different than that of traditional self-storage.

Pick your tone of voice. It’s smart to use colloquial language. Nothing kills customer interest faster than industry jargon and overcomplicated details. Speak to people the way you would speak to your friends. If possible, include some humor!

Decide on your color palette. This can be incredibly important, as colors connect to emotions. Think about your high school or college colors. You probably feel a strong loyalty and pride when you see them. Storage is a hyper-local business. If you’re in a community where you can incorporate colors from a school or sports team, consider it. Your customers will have an instant emotional tie to your brand.

Choose a great name. Start by gathering a list of ideas, then select a few names that are clear, descriptive and easy to remember. Make sure your final selection can be easily carried into your logo. For local businesses, I recommend incorporating something that ties into the community. For larger, multi-facility brands, you might use a local modifier of the city or town name in addition to your brand name.

Create a visually appealing logo. This should be more than just your business name in Arial or Times New Roman font. In other words, it shouldn’t look like you just typed it in Microsoft Word. Your logo should be polished and memorable. Try to incorporate an icon or symbol that complements your brand.

Weave your brand into everything you do. If there’s one piece of advice you should write down as a takeaway, it’s to create consistency. Every piece of your brand should be seen across all that you do, from the way your managers speak with your customers to how you’re communicating online and across all the signage on your property. That consistency is what creates credibility and trust.

Top 5 Mistakes

With branding, knowing where to start is only half the battle. It’s just as important to recognize the common mistakes to avoid. Here’s a list of the top five. Some of these have already been subtly mentioned above, but they’re important enough to repeat.

• Confusing branding with marketing. Your brand defines who and what your company is. Marketing makes people aware of your brand.
• Equating branding to a logo. Remember, branding is about your business purpose, position, promise, personality and identity. It’s much bigger than just a graphic.
• Lacking consistency across channels. Once you’ve created your brand, ensure it’s represented similarly across all channels—print, Web, social media, signage, etc.
• Attempting to appeal to everyone. We get it: Everyone uses storage. But you can’t be all things to all people.
• Disregarding professional help. Don’t allow a sign company to create your logo because you think it’s only going to be on your pole or building. It’s going to be everywhere!

Do you know the biggest mistake of all? Doing nothing! Your self-storage brand should be an interconnected suite of expectations, experiences, promises, benefits and identifiable symbols that deliver your story to the masses. It’ll take thought and effort, but great branding is worth it!

Christina Alvino is the owner of FineView Marketing, which specializes in working with small and mid-sized self-storage operators. She’s served as an executive-level marketing leader in the storage industry since 2011. Prior to launching FineView, she worked in marketing and operations for several large self-storage operators including Great Value Storage, Guardian Storage and LockTite Storage. For more information, call 724.413.6195; email [email protected].

Self-storage isn’t the “build it and they will come” business it was 20 years ago. It’s much more competitive and sophisticated now. To properly operate a facility, it takes data analytics, marketing expertise, exceptional customer service and even contractor-level maintenance knowledge. And that’s just to get through Tuesday!

I often see owners falling behind and making less money than they could because they’re holding onto the reins of their business too tightly. They won’t release day-to-day control to anyone, but they also don’t have the bandwidth to do everything, let alone do it well. This is kind of funny when you consider that some of them simply want to own storage, not manage it.

There are two realities every self-storage owner must accept: You likely can’t do everything yourself, and working with a team is better than going it alone. Outsourcing certain aspects of your business may be key to its success. It’s a fantastic way to make more money, have more time, and free yourself to do the work you most enjoy (or not do anything at all). It allows you to retain control of the operation while still being accountable for the results.

Think of it as a lake: You get to decide whether you dip your toe or take a full swim. Either way, you have people ready to help if you get in too deep. It’s like having arm floats for your self-storage business! You can outsource specific aspects to several vendors or hire an industry management company to handle it all. The choice is entirely yours.

What Can You Outsource?

Marketing. When you first start outsourcing, this is often a great place to begin, as marketing regularly drives revenue. When you interview potential vendors, make sure you get a clear picture of their plan for your business. Simply building a website isn’t enough. A good program includes online business listings, search engine optimization, social media, reputation management, and much more.

Accounting. This is among the first areas that come to mind when people think of outsourcing. Hiring a professional to handle these tasks allows you to focus on other parts of the business. When talking to candidates, make sure they understand your management-software program and how to handle self-storage finances. The last thing you want is someone to record your deposits without realizing they include sales tax, for example.

Human resources. To outsource your hiring and other staff needs, you need a vendor you trust to make decisions on your behalf. It should be able to handle recruiting, hiring and training.  Good self-storage managers are critical to business success, so you want ones who are trained correctly and according to state and industry standards. Further, training shouldn’t be a one-time thing, but a constant review of all the tasks that must be performed correctly. Your partner might even handle payroll, benefits and more.

Maintenance. Outsourcing in this area may be a great solution for your self-storage property, depending on its age and the level of previous care. There are many companies that can help you with preventive services or fix things that are broken. If you’re still dealing with every door, lock and screw, it’s time to consider letting someone else handle the details of site upkeep.

Management. If you’d like to outsource all your day-to-day operations so you can focus on other pursuits, hiring a third-party management company is an excellent choice. They can handle everything—marketing, revenue management, hiring, maintenance, training, payroll, accounting and so on. They’re the ultimate partner, allowing you to own storage without it owning you.

When choosing a company, it’s important to find the right fit. There are many options, from real estate investment trusts to small, independent firms. Here are a few things to find out:

• Does the company adapt a “set it and forget it” approach to management, or are they aggressive and competitive, working every day for your business?
• Will they manage your store according its individual performance, or do they manage every asset the same way according to a set process?
• Who will oversee your site, and who looks at the data?

Any good management partner will conduct site visits and have strong systems and processes in place. The thing that really moves the needle, though, is the amount of attention your store ultimately receives.

Choosing Partners

When choosing self-storage vendors with which to outsource, there are several factors to consider. Of course, price will be one, but you must also like the company and its team. Plus, its staff should be knowledgeable and understand what you need.

Be very clear about your expectations, including timelines, deadlines and deliverables. Talk to each candidate more than once before hiring and ask them to explain their approach to the work until you fully understand it. Request references. Discuss how they’ll handle potential complications. Hopefully, your new partnership will be perfect, but no relationship is all sunshine and rainbows. If you pick a vendor you like, with employees who are smart and easy communicate with, nearly any problem can be worked out quickly and reasonably.

Finally, understand the service contract. Signing a long-term agreement might leave the vendor less inclined to work as hard unless there are stipulations to enforce their performance. A shorter contract, on the other hand, will entice the vendor to show you results.

As you begin your self-storage outsourcing journey, expect to experience some bumps and roadblocks along the way. Assume there’ll be a learning curve for all parties. Be prepared to communicate your needs and speak up if a vendor isn’t meeting them. As the owner, you’re in control, and it’s your job to keep everyone on the same page. In the end, when done right, outsourcing will create the facility performance you desired when you entered the business, while giving you the freedom to enjoy it.

Magen Smith is a co-founder of Atomic Storage Group, a boutique self-storage management company, and owner of Magen Smith CPA, an outsourced accounting firm specializing in self-storage. She’s also a partner in Safe Space Development, which builds self-storage properties. Magen started in the industry as a facility manager and has held nearly every operational role. She has a passion for the industry, helping owners improve their businesses, teaching asset management and conducting self-storage audits. To reach her, e-mail [email protected].