Over the past five years, the industry has grown up and come into its own as a recognized commercial real estate investment. Self storage has grabbed the attention of private equity companies and real estate investors. Cap rates have dropped like a rock and development has increased to a frenzy. With so many people eager to invest in self storage, we must consider if self storage is a good investment.
Self storage marketing is the foundation of a good management company. You might have a lot of questions about what they do and don’t do. Hopefully, this article can help you out a little!
Here are a few good questions to ask a management company:
“What is their marketing plan? How will they close leads and rent units? Do you have a marketing plan in place with a cost associated with that? What should be included in your marketing plan?” As competition heats up in our industry, you need to know how your self-storage management company plans to take on this challenge.
Having a marketing plan in place will significantly increase your chances of weathering the storm.
Below is a list of things to consider when asking about marketing plans: Internet presence – may include a website, social media, aggregators, pay per click, etc. Ground-based Marketing – advertising at local businesses such as apartment complexes, realtors, moving companies, etc. Referral/discount programs Design of marketing materials Timing – how often will you run your marketing plan? Once a quarter, yearly? Reporting and tracking – How do they track it? Make sure they include how potential customers are tracked and followed up with. Because this helps to determine how successful (or not) a marketing plan is. Once a marketing plan is complete, implementation of that plan is just as important. Most self-storage managers are not natural marketers, so proper training is critical. How will the staff be trained and by whom? The facility managers must be able to close these leads to make a difference.
It’s vitally important that any management company you choose takes the time to implement this type of training. Customers have less patience than ever, so the best plan will win. Check out what we did for our customers! http://Client Stories
Parting with a self storage management company is one of the most important decisions you can make for your investment. If you are like most self storage investors, you got into the self storage industry to create passive wealth, not deal with the day-to-day management of a business.
Self storage is unique in the commercial real estate industry as it is both an investment AND an operating business. The business demands time and attention to give a strong return on investment.
Whether you want to free your time to chase more deals or relax on a beach, we suggest hiring a self storage management company (like us!)
If you are like most of our customers, you have some questions before you are ready to give a management company the keys to the kingdom. We get it. Here are some things to think through before you decide on hiring a self storage management company.
Who should you partner with?
There are basically three options in regards to self-storage management companies: REIT, Private Storage Management Company, or Boutique Self Storage Management Company. To hire a REIT, your store has to meet specific criteria. It will be integrated into a network of hundreds of facilities very quickly. The operating systems, marketing campaigns, sales programs, and facility reporting come pre-installed. Your store will be re-branded (at your expense) to the REIT name and identity. If you decide to cancel management at any time, you need to re-brand back to your original name.
A REIT management company may choose to purchase your property when you decide to sell. A private management company is privately owned and may have 5 – 200 properties. Private management companies may or may not make you rebrand your property. There is less consistency among private management companies, so be sure to do your homework to make sure they are a good fit. A boutique management company (like Atomic), is a true partner in your company. Boutique companies believe it is their obligation to run your storage business to the best of their ability and take care of your asset.
Boutique companies give their customers care and attention and do not just see them as a number on a spreadsheet. They focus on the small things that matter to yield the largest benefits for their customer. They focus on the bottom line just as much as the top. At the end of the day, it all comes down to who you feel comfortable with? What are your goals for your business?