At first glance, managing a self-storage facility looks easy. Four walls, roll-up doors, and some locks, what could go wrong? Plenty. We’ve brokered countless deals and seen too many promising properties underperform, not because of bad locations but because of avoidable management mistakes.
Here are the most common pitfalls in DIY self-storage management and how to fix them before they drain your NOI.
1. Static Pricing
The Pitfall: Setting rental rates once and forgetting them. Meanwhile, demand shifts, competitors adjust, and your revenue falls behind.
The Fix: Think like airlines. Adjust pricing based on occupancy, seasonality, and competition. Even a modest $5 to $10 bump per unit adds significant annual revenue without adding doors.
2. Skimping on Marketing
The Pitfall: Hoping drive-by traffic or a basic Google listing fills units.
The Fix: Your competitors are using digital ads, SEO, and reviews. You need to as well. At a minimum, have a modern, mobile-friendly site with online rentals. Proactively ask happy tenants for reviews; they are gold in this industry.
3. Weak Collections
The Pitfall: Avoiding tough conversations, letting delinquencies stack up, and losing thousands.
The Fix: Automate reminders, enforce late fees, and hold auctions on time. Even implementing mandatory Auto-Pay, and tenants who elect not to go on auto-pay are required to pay an additional $5-$10/mo as a “Counter Fee” for increased administrative work. A tenant who doesn’t pay isn’t a customer; they are a liability. Protect your cash flow.
4. Expense Creep
The Pitfall: “It’s just a few hundred bucks.” Vendors raise prices, utilities spike, repairs linger, and suddenly your expenses are bloated.
The Fix: Audit quarterly. Compare expenses to industry benchmarks. Get competitive bids. Small efficiencies like LED lighting, challenging taxes, shop insurance carriers yearly, preventive maintenance protect margins and boost valuation.
5. Doing It All Yourself
The Pitfall: Owners play manager, marketer, and handyman while juggling other jobs. Burnout follows.
The Fix: Outsource where possible. Use software, call centers, or part time staff. Your role is oversight, not fixing roll-up doors or cleaning out units on weekends.
6. Poor Customer Experience
The Pitfall: Dirty hallways, poor lighting, clunky rental processes. Tenants leave and bad reviews follow.
The Fix: Walk your property weekly. Would you store your own belongings here? Fresh paint, clear signage, and 24/7 account access build tenant trust and loyalty.
7. No Exit Strategy
The Pitfall: Focusing only on today’s operations, with little thought to long term value. Sloppy records and inflated expenses slash future sale prices.
The Fix: Run your facility as if you will sell tomorrow. Maintain clean financials, track KPIs, and document improvements. Buyers pay premiums for turnkey operations.
The Bottom Line
DIY management may feel cost efficient, but the wrong approach costs far more than it saves. The best operators don’t do everything themselves, they focus on the right things, consistently, and know when to leverage professionals.
Recognize and fix these pitfalls early, and you will not only enjoy smoother operations, you will build an asset buyers will line up for when the time is right.
Ask yourself: Are you managing your facility, or is your facility managing you? The answer can be the difference between a good investment and a great one.
Article provided by:
David Perlleshi and Frank DeSalvo,
Senior Brokers, Investment Sales
Franklin Street Self Storage
