During the coronavirus pandemic, lots of things have changed. We’ve made serious adjustments in our personal as well as our professional lives. The economy also adjusted to the new way of life and, one might argue, opened new opportunities. To help you stay on top of things, in today’s episode we’re discussing various tactics for self-storage investing in the current economy.
My good friend Tron Jordheim will be joining this conversation with his unique insights into the industry. He’s a business consultant, a self-storage investor, and an honorary speaker in our Self-Storage Academy.
Beginning with Self-Storage During the Covid-19 Pandemic
While a lot of people have been seriously affected by the pandemic and the economy is slowing down, when it comes to this business, Covid-19 isn’t slowing progress. The self-storage industry is actually recession-resistant!
Storage space is crucial for both people and businesses that are downsizing. Units are occupied by people who are looking to save money on rent but don’t want to get rid of all their precious belongings.
Social distancing doesn’t affect vacancy rates at all. In fact, most self-storage facilities are (or at least should be) “no contact.” One person may go to the facility and get a rental unit without worries of potentially dangerous contacts. Tenants can lease units on kiosks, pay with a card, and get their things without any contacts at all. For investors, this means a completely hands-off approach. Just invest money and receive passive rental income.
To start investing in commercial real estate you should conduct thorough research to find suitable projects, properties, and syndicators. With the right partners, you can grow your investment completely remotely! Even if you want to be more involved, you can co-own a facility without dealing with the hassles of tenants, toilets, or trash.
Self-Storage and the Pandemic
“No contact” systems are crucial for succeeding in the midst of the Covid-19 pandemic. You need to ease the mind of your customers and assure them that your remote systems are convenient and safe. Renting from the phone and getting an access code in an instant is the new norm in the industry. If you don’t adjust, your competitors will get all your customers.
Providing quality service is always important, regardless of the pandemic. Being kind, helpful, and understanding of customers’ situations will get you far. A user-friendly interface and polite employees will make business easier. The most successful company helps its clients with their problems!
People are coming to self-storage facilities due to unemployment or because they are working from home. In both cases, they need understanding and compassion, and it’s our duty as self-storage investors to make renting units as easy as possible.
You also need to help your current customers. We don’t know what the future holds, and it’s much more expensive to replace a customer than to keep a customer. Waiting on late fees, canceling auctions, or setting a schedule for future payments can be good ideas. Some operators are choosing to approach things a bit more aggressively, with no tolerance for late payments.
This pandemic puts both investors and tenants in a tricky situation. There isn’t just one right answer, so we must adapt along the way. Naturally, we should try to reduce the overall costs with the help of available technology, which will help both our customers and us.
Starting in Self-Storage Is Easy
While it’s important to be cautious, you should take advantage of lucrative opportunities. Self-storage is open to beginners, no matter the economy! But, if you still have fears about investing in these current times, don’t fret – we’ve got you covered. Check out more information on how you can make smart investments during the pandemic.