When you are a self storage facility owner, you quickly learn that the key to making money is to push the facility to be worth more than what you paid for it. There is a well-established formula for doing this. Here are a few of the top tips that can be applied to any facility.
Improve the Entry
A large percentage of the time you can make your entry more attractive. Most of the time noting extravagant has to be done to accomplish this! Think about simple changes such as a new sign, new fencing, better lighting, some attractive flags. It is important to know that customers are buyers based on “first impressions”, that is how your facility looks at first. The entry is extremely important.
Use the Internet to Increase Occupancy
If a facility is well established then chances are it has been run by a different generation. If this is the case, you will typically find that the internet hasn’t been used to it’s fullest potential. You would be shocked at how much more traffic you will see just by simply getting your business listed by Google! If the internet isn’t something that you are comfortable or confident in, find someone who is! We are living in the technology age and finding help won’t be difficult.
Focus on Retention
Do you know what is even better than signing up a new customer? Keeping the ones you already have! They have a track record of paying on time and you don’t have to worry about a vacancy period. How can you improve your retention rated? By making connections. Send them personalized newsletters or thank you cards. Keep your facility well maintain. If calls or stops by to cancel their lease, do everything you can to change their mind. If you can’t do that, find out why they are leaving. If it is because they are dissatisfied with something, take the appropriate steps to fix that problems so you don’t lose anymore customers for the same reason.
Raise Rents Where Possible
One of the biggest mistakes owners can make is to keep rent levels low when everyone else has gone up. This may seem like a selling point, there are reasons why the rates go up. If you aren’t following those rate trends, you will end up losing money at your bottom line. Raising rents on existing customers is not always easy or fun, but it is necessary.
Find Ways to Cut Costs
This is something that sounds simple, but once started is harder than expected. Even if it seems impossible to lower costs, keep looking for things that could get the axe. Have you considered renegotiating things that can’t be eliminated? Look for cheaper insurance, cheaper lawn services, etc. It is quite amazing what you can do when you put your mind to it!
There are always ways that you can increase your income stream for your facility and increase the value of your facility.