How to Manage Properties with Storage Facilities
Managing properties with storage facilities can be a lucrative investment for real estate investors, homeowners, and agents. However, it requires a strategic approach to ensure success. In this article, we will discuss the various aspects of managing properties with storage facilities, including the benefits, challenges, and best practices. We will also provide relevant examples, case studies, and statistics to support our points.
Benefits of Investing in Properties with Storage Facilities
There are several advantages to investing in properties with storage facilities. Some of these benefits include:
- High demand: The self-storage industry has been growing steadily in the US, with a market size of $39.5 billion in 2020. This growth is driven by factors such as urbanization, downsizing, and an increase in the number of people renting homes.
- Stable income: Storage facilities can provide a steady stream of income for property owners, as tenants typically sign long-term leases and pay rent on a monthly basis.
- Low maintenance: Compared to other types of real estate investments, storage facilities generally require less maintenance and upkeep, which can result in lower operating costs.
- Diversification: Investing in properties with storage facilities can help diversify your real estate portfolio, reducing the risk associated with relying on a single type of investment.
Challenges of Managing Properties with Storage Facilities
While there are many benefits to investing in properties with storage facilities, there are also some challenges that property owners and managers should be aware of:
- Competition: The self-storage industry is highly competitive, with many new facilities being built each year. To succeed, property owners need to differentiate their facilities and offer unique features or services.
- Regulations: Storage facilities are subject to various local, state, and federal regulations, which can impact the operation and management of the property. Property owners need to be aware of these regulations and ensure compliance.
- Security: Ensuring the safety and security of tenants’ belongings is a top priority for storage facility operators. This requires investing in security measures such as surveillance cameras, access control systems, and on-site personnel.
- Marketing: Attracting and retaining tenants is crucial for the success of a storage facility. Property owners need to develop and implement effective marketing strategies to promote their facilities and attract new customers.
Best Practices for Managing Properties with Storage Facilities
To effectively manage properties with storage facilities, property owners and managers should consider the following best practices:
1. Implement a Robust Security System
As mentioned earlier, security is a top concern for storage facility tenants. To ensure the safety of your tenants’ belongings, invest in a comprehensive security system that includes surveillance cameras, access control systems, and on-site personnel. Regularly review and update your security measures to stay ahead of potential threats.
2. Offer Competitive Pricing and Flexible Lease Terms
To attract and retain tenants, offer competitive pricing and flexible lease terms. Research the local market to determine the average rental rates for storage units and adjust your pricing accordingly. Additionally, consider offering discounts or promotions to attract new customers and incentivize long-term leases.
3. Maintain and Upgrade Your Facility
Regular maintenance and upgrades are essential for keeping your storage facility in top condition and attracting new tenants. Schedule routine inspections and repairs to address any issues promptly. Additionally, consider investing in facility upgrades such as climate-controlled units, improved lighting, and enhanced security features to stay competitive in the market.
4. Develop a Strong Online Presence
Having a strong online presence is crucial for attracting new tenants and promoting your storage facility. Create a professional website that showcases your facility’s features, pricing, and availability. Additionally, leverage social media platforms and online review sites to engage with potential customers and showcase positive testimonials from satisfied tenants.
5. Provide Excellent Customer Service
Providing exceptional customer service is key to retaining tenants and generating positive word-of-mouth referrals. Train your staff to be knowledgeable, friendly, and responsive to tenant needs. Additionally, implement a streamlined communication system to ensure that tenant inquiries and concerns are addressed promptly and efficiently.
Case Study: Extra Space Storage
Extra Space Storage is a leading self-storage provider in the US, with over 1,900 facilities across 40 states. The company has achieved success by focusing on customer service, security, and facility maintenance. Some of their best practices include:
- Offering a wide range of unit sizes and types, including climate-controlled units and vehicle storage.
- Implementing state-of-the-art security measures, such as 24/7 video surveillance, electronic gate access, and individually alarmed units.
- Providing exceptional customer service through a well-trained staff and a user-friendly website that allows tenants to easily Reserve and manage their units online.
- Regularly investing in facility upgrades and maintenance to ensure a clean, safe, and attractive environment for tenants.
By following these best practices, Extra Space Storage has become a trusted and reliable storage solution for thousands of customers across the country.
Managing properties with storage facilities can be a profitable investment for real estate investors, homeowners, and agents. However, it requires a strategic approach to overcome challenges such as competition, regulations, and security. By implementing best practices such as robust security measures, competitive pricing, facility maintenance, a strong online presence, and excellent customer service, property owners can successfully manage their storage facilities and maximize their return on investment.