Five Digital Marketing Tools Every Self Storage Facility Needs

With online commerce becoming an ever-growing necessity, having a presence online for your self storage facility is non-negotiable anymore. Don’t lose sleep over your digital marketing efforts. You can make sure your self storage facility is reaching your customers effectively with these five digital marketing tools. 1. Website A website is the place customers often visit more frequently than a physical location because it’s a fast, easy and constantly open digital store front. It’s a place for your customer to get to know your self storage facility and the products…

How to Set Competitive Self Storage Rates

One of the keys to success in the self storage industry is setting your rental rates competitively. So, what does it mean exactly to have competitive rates? Pricing your self storage units competitively means that you strategically set the rental rates relative to the competition in your market. Competitive pricing occurs in industries where the products being sold are pretty similar to each other like toothpaste, gasoline and, of course, self storage units. To many customers, a storage unit is a storage unit. That means if you offer a 5×5…

Self Storage and Zoning Woes: How Planning to Appease Could Make All the Difference

While self storage may be the current darling of pandemic-wary investors and REITs, a growing number of townships, municipalities and cities are less affectionate. Push back from zoning commissions is nothing a seasoned developer hasn’t encountered and should rarely come as a surprise. Your team’s initial research should include past zoning objections and expected areas of opposition. Some of the most common complaints can be answered in the earliest phases of planning, as explored below. Self storage facilities gained a bad reputation for being unsightly, often described as large, windowless…

Pitfalls of a Database: Why Good Data Management Matters for Your Self-Storage Operation

In self storage, your ability to make the right decisions is dependent on your data quality. If your database contains outdated, inaccurate, or incomplete data, you’ll lack visibility to the information you need to reduce costs, retain tenants and grow your business. The Business Benefits of Effective Data Management Despite the risks, poor data management continues to be a widespread problem in self storage. On average, Experian reports that 33% of organizations‘ existing customer and prospect data is inaccurate. With the right data management strategy, your self storage operation can…

Your Due Diligence

So, you want to buy a storage facility? Before you get to negotiations, you want to ensure you have done your due diligence or audit of the property. Inspecting the property is critical and will determine if you’ve struck gold or need a very large pitcher for the lemon in which you just invested. The following is a list of things to consider when buying a storage facility. INSPECT what you EXPECT.  Complete a detailed walkaround to make sure your expectations are confirmed. Are units occupied? Do you see or detect…

Pitfalls of a Database: Why Good Data Management Matters for Your Self Storage Operation (Part One)

As a self storage owner or operator, much of your ability to make the right decisions hinges on your data quality. If your database contains outdated, inaccurate or incomplete data, you will lack visibility to the information you need to reduce costs, retain tenants and grow your business. With technology quickly becoming a determining factor in self storage success, effective data management plays an even more significant role in your operation’s bottom line. But what is data management? And how can you improve data management to achieve better outcomes for…

The Basics: Cap Rates and Self Storage Investments

It’s not uncommon for self storage investors and those in the industry orbit to have a limited understanding of cap rates. Certainly, they may know what’s considered a “good” cap rate but may not have a full mastery of the equation that created it. In this article, we’ll define and demystify cap rates, apply it in a real-world example and offer guidance on their importance in self storage investment decision-making. Cap rate, short for capitalization rate, is a core measurement used to estimate a property’s ROI. Imagine having a crystal…

Third-Party Management Fuels Acquisition Activity at Life Storage

Third-party management is turning out to be an acquisition goldmine for Life Storage. Joe Saffire, CEO of the Williamsville, NY-based self storage REIT, said roughly one-third of the 75 facilities purchased so far this year were part of Life Storage’s third-party management platform. Saffire called the company’s third-party platform a “robust acquisition pipeline.” “The hard work of our acquisitions and third-party management teams over the past several years executing on our relationship-based strategy to be well positioned when opportunities become available is clearly paying off,” Saffire said in a Nov.…

Investor Demand for Self Storage Soars – What Does This Mean for the Sector?

The self storage industry has transformed over the last decade with acquisition volume increasing by more than 35x since 2011 – annual acquisition volume in 2011 totaled approximately $508 million and is expected to reach $18 billion for the year 2021. The resiliency, stable cash flow and low CapEx requirements continue to draw real estate investors to self storage, but more than anything, investors have recognized its relative value versus other real estate asset classes. As stabilized cap rates in the multifamily and industrial sectors compress to historic lows (below…

Protecting Your Investments from Inflation

In today’s investment market, the main concern on everyone’s mind is the potential for a significant uptick in inflation. Over the past ten years, the average rate of inflation in the U.S. was about 1.8%. However, many experts are now calling for higher than normal inflation due to the impacts of the coronavirus stimulus bill, low interest rates and a rapidly recovering economy flooding the market with cheap money. The result will be increased competition for goods and services resulting in rapidly rising costs and inflation. The general way to…