Top 3 Traits for a Self-Storage Property Manager
The self-storage property sector has played to its strengths in the past couple years, but choosing the right manager for your property can make a world of difference.
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Self-storage facilities can be highly profitable investments for their owners. The asset has been a relatively safe bet as far as investments go — the sector is one among few that did not buckle under the burdens of the economic uncertainty of the pandemic. Even so, many self-storage owners don’t necessarily have the motivation, skill set, or time to actually handle property operations. In many cases, an investor will engage a property manager to handle the day-to-day operations.
How Property Managers Drive Growth for Your Self-Storage Business
With that said, hiring the right property manager can be a critical factor in the success of your business. It is the job of a property manager to not only handle the day-to-day operations of the facility but to also be the main point of interaction for tenants. Hiring a good property manager can increase an asset’s revenue through new sales opportunities, customer satisfaction, and a motivated staff — but not all property managers are created equally.
Below are three critical considerations for choosing the right property manager for a self-storage asset:
1. Customer Service
Customer service is arguably the most important job of a self-storage facility’s staff. The very nature of self storage makes customer service the only real need for staff in the first place (apart from security, of course). This is why the customer experience is so important to the success of a self-storage asset — and property managers play a significant role in customers’ rental experience.
Investors should look for a motivated, friendly, and helpful property manager. From tending to existing tenants to giving facility tours to potential new customers, a self-storage property manager should aim to make customers feel welcomed, listened to, and cared for. Good communication skills are of the utmost importance.
2. Sales Experience
While customer service should be the primary concern of a self-storage property manager, sales performance is just as critical. It’s one thing to preserve the business of current tenants, but to actively sign new tenants is a whole other ballgame. Hiring a property manager with some professional sales experience can have substantial benefits for investors. A property manager proficient in sales can not only sell potential tenants on renting at the facility but could help to identify and build useful business strategies to grow the business further.
3. Thoroughness
Even with such great potential for profitability, the smallest of issues can hamper a self-storage investor’s returns. Having a detail-oriented property manager helps keep such issues at bay. Ideally, every customer concern or complaint should be addressed with some sense of immediacy. Little things such as timely cleanup and a tidy office can go a long way. This is also essential for identifying maintenance issues at an early stage, which not only benefits customers but also increases the value and longevity of your facility. Even something as simple as ensuring that all of the lightbulbs are changed as soon as they blow helps to show customers the facility is well maintained and worth their rental dollars.
This skill is also important to office tasks. Self-storage facility rental agreements may not be as contractually heavy as, let’s say, a multifamily lease — but they do require some due diligence and proper recordkeeping. Having confidence in a property manager who can uphold every aspect of such a contract and keep discrepancies to a minimum greatly reduces the stresses associated with operating a self-storage facility.
Related Questions
What qualifications should a self-storage property manager have?
When looking for a property manager for a self-storage facility, it's important to consider the following qualifications:
- Experience in the self-storage industry
- Knowledge of local laws and regulations
- Ability to manage tenant relations
- Ability to manage financials and budgets
- Ability to manage maintenance and repairs
It's also important to look for a property manager who is organized, detail-oriented, and has excellent communication skills. Source
What are the most important skills for a self-storage property manager?
The most important skills for a self-storage property manager are customer service, marketing, financial management, and problem-solving.
Customer service is key for a self-storage property manager, as they need to be able to interact with customers in a friendly and professional manner. They should also be able to handle customer complaints and inquiries in a timely and efficient manner.
Marketing is also important for a self-storage property manager, as they need to be able to promote the facility and attract new customers. They should be able to create effective marketing campaigns and use digital marketing tools to reach potential customers.
Financial management is also important for a self-storage property manager, as they need to be able to manage the facility’s finances. They should be able to create budgets, track expenses, and manage accounts receivable and payable.
Finally, problem-solving is an important skill for a self-storage property manager, as they need to be able to troubleshoot any issues that may arise. They should be able to think critically and come up with creative solutions to any problems that may arise.
For more information, please see this article about the top 5 emerging self-storage markets.
What are the key responsibilities of a self-storage property manager?
A self-storage property manager is responsible for overseeing the day-to-day operations of a self-storage facility. This includes managing the facility's finances, marketing, customer service, maintenance, and security. The manager must also ensure that the facility is compliant with all local, state, and federal laws and regulations. Additionally, the manager should be knowledgeable about the local market conditions and be able to identify potential opportunities for growth.
The property manager should also be able to provide loan products to customers, such as long-term financing, short-term financing, and bridge loans. They should also be able to provide advice on the best loan products for customers, such as fixed-rate loans, adjustable-rate loans, and balloon loans.
The property manager should also be able to provide advice on the best ways to maximize the value of the self-storage facility, such as by increasing occupancy rates, improving customer service, and implementing new technologies.
What challenges do self-storage property managers face?
Self-storage property managers face a few challenges, such as needing to have on-site staff, higher operational costs if all units are climate controlled, and needing on-site security. According to selfstorage.loan, self-storage property managers need to have strong organizational skills, be able to multitask, and have excellent customer service skills.
How can self-storage property managers increase occupancy rates?
Self-storage property managers can increase occupancy rates by offering competitive rental rates, providing a variety of unit sizes, and offering amenities such as climate control, 24-hour access, and security features. Additionally, they can offer flexible leasing terms, such as month-to-month leases, to attract more tenants. Additionally, they can advertise their facility through online listings, local newspapers, and other marketing channels. Finally, they can offer discounts or promotions to attract new tenants.
For more information, please see the following resources:
What strategies can self-storage property managers use to reduce operating costs?
Self-storage property managers can reduce operating costs by not always needing on-site staff, as tenants are not generally demanding. Additionally, climate-controlled units and on-site security will increase costs, so these should be avoided if possible. Lastly, self-storage properties have relatively low operating costs compared to other types of commercial real estate, so net operating incomes are easier to keep in the black. https://selfstorage.loan/blog/top-3-traits-for-a-self-storage-property-manager and https://www.commercialrealestate.loans/net-operating-income-calculator/