How To Manage A Storage Unit Facility

How to Manage Your Facility: Basics

You probably thought about high profits, low construction costs or increasing demand when you started investing in self-storage real estate.

It’s likely that you were less concerned about the amount of work required to manage your facility.

Self-storage facilities require a great deal of maintenance, even though they are considered low to moderate in comparison to other commercial properties. Rent must be collected, tenants accommodated, and business management skills are needed.

This article will explain what it takes to manage a self storage facility, and give you three options for management that you can consider when starting your business. Read for more info –  storage facilities in Auckland.

What Is Involved In Managing A Self-storage Facility?

What does it take to run a self storage facility smoothly? Here are a few key responsibilities.

The Security Of Your Own Home

Storage facility owners must take steps to deter theft and reassure tenants. This includes hiring security or installing it within the facility. You can’t ensure the safety of the items that your tenants store (and they should acknowledge this legally in the rental agreement ), but you can provide the best possible security without spending a fortune. This means that you have two choices: either hire security personnel and manage their schedules and payments, or install technology such as smart locks, alarm systems, mobile entry, and monitor and maintain these devices.

Maintenance

Self-storage units will not need you to hire plumbers to fix a leaky faucet or replace broken appliances, but they still need maintenance. For a self storage owner or manager, monthly maintenance means:

• Cleaning interior walls by wiping them down and removing debris
• Checking the walls and doors for damage
• Checking for tears or splits in insulation
• Pests can be removed by removing them.
• Mold or mildew can be treated as environmental contaminants
• Cleaning climate-control units
• Roll-up door mechanisms: inspecting and lubricating

Do not forget to clean and maintain the common areas of your storage facility. Regular cleaning and maintenance includes:

• Interior halls (for indoor access facilities)
• Parking lots and driveways
• Gates, fences and locks for security
• Dumpsters
• Electricity and climate control abilities
• General Landscaping

Marketing/Advertising

Marketing is the main driver of customers for any business. You’re unlikely to achieve the revenue that you’d hoped without a good marketing strategy. Learn how to manage this part of your business by reading our articles on Marketing and Advertising your Self-Storage Units.

Lease

Every rental business relies on leasing. Because the self-storage business is one that has a high turnover rate, you will need to be prepared to manage, track, sign and write hundreds of leases each month with different tenants.

Rent Collection

Rent collection is the core of any rental business. Rent collection is automated for landlords using online payments. However, you will still need to monitor and manage transactions, make sure receipts and records have been made correctly, and impose late fees if necessary.

Accounting and Finances for Facilities

As a manager of a self storage facility, you will also be responsible for finance and general accounting. This includes tracking monthly expenses, insurance costs and revenue. It also involves analyzing these metrics in order to keep track of the financial health your investment. You will need to keep up with your tax and accounting documentation if you do not outsource this work to a CPA.

Hiring Employees/Contractors

Do you have employees who are accountants, lawyers, managers, maintenance personnel, or security staff? If yes, then managing your employees (their salaries, benefits and daily tasks) is a responsibility.

Renewals and Terminations, Turnovers and Evictions

Storage facility owners prepare for high turnover of their units. Self-storage units are typically leased on a month-to-month basis, since many customers only need short-term storage. Owners and managers must stay on top of lease terminations, renewals, turnover and, in rare instances, self storage evictions. It’s important to keep track of the lease status for each customer, send notices for renewal and termination in advance, watch for move-outs for departed renters, as well as assist new tenants with their move-in.

Option 1: Manage Your Facility On Your Own

Let’s look at a few options to fulfill these tasks. You can manage your self-storage facility by yourself, or with the assistance of contractors and employees. Hand-updating documents, managing renters, and updating leases will be part of your daily routine.

You can still hire help if you manage your facility on your own. You can hire an accountant to do your taxes or a maintenance company to handle the upkeep of your facility. On-site security personnel could be hired, as well as leasing agents who meet with clients and sign leases.

Pros

• No management fees. You won’t need to pay a lot of money to a management firm each month.
• Hands-on approach. You will be involved in your company’s day-to-day activities.

You Can Also Find Out More About Cons

• Broad expertise required. As a landlord, you have to be a master of all trades. You are responsible for all aspects of management, including marketing, advertising and leasing. Other responsibilities include customer service, employee management and accounting. You may require more assistance than you expected.
• Must work on-site. This option won’t work remotely. It may be difficult to hold a W2 job.
• Management and employee salaries. Even if you hire someone to manage your employees, you will still need to manage them. You may lose money on employee compensation if you cut back on outside management costs.

Option 2: Hire an Self-Storage Management Company

Can also hire a self-storage company. This company will assign one or more property manager to your facility who will take on the daily operational tasks as outlined in their contract.

By outsourcing management, you can reduce the stress of managing your business and help it grow into a successful enterprise. You can also access the company’s expertise and knowledge from years of experience. You don’t need to waste time trying to learn new skills, or experimenting with marketing or leasing techniques you haven’t tried before. You can relax knowing your investment is in the capable hands of experts.

Pros

• Little day-to-day management. Third-party management may be the best option if you have multiple properties or a full-time job. You can juggle all your responsibilities.
• Expert advice. Management companies are more experienced in managing than you, and they can use their experience to help your facility achieve real results.

You Can Also Find Out More About Cons

• High management fees. Fees for management companies can be more than 6% your gross monthly income. Although it’s not as expensive as managing a commercial property, the fees are still significant. The more your business expands, the higher the costs.
• Hands-off approach. Management companies allow you to be less involved in your company. While this is often a positive, you may find yourself less involved in your business and more distant from it.

Use Property Management Software

Self-storage unit software allows you to maximize your gains while minimizing costs. All internal tasks, such as rent collection, leasing, financial reports, and maintenance management, can be managed online. Many of these tasks can be automated by software, so you have more time for the parts of your business which require personal attention. You can manage your self storage facility using an account just like you would manage a traditional commercial or residential property.

Pros

• Free or low cost. Our software is available to all self-storage owners and landlords at no cost.
• A simplified approach. The software is an all-in-one solution for documents, messages and data related to your rental properties.
• Remote management. You can manage your property remotely with the help of property management software and reduce office costs if you wish. Software features such as online rental collection, digital esignatures and outdoor-access units can be used in conjunction with kiosks or mobile entry.
• Convenience. It’s convenient. You can sign leases and manage tenants from your couch.

You Can Also Find Out More About Cons

• Technology expensive (for full-remote). You’ll need smart locks, self-service kiosks and security cameras to be able to fully manage your facility remotely. These devices are expensive to install and maintain.

The Conclusion Of The Article Is:

Even though it is less work than managing traditional leased properties, managing a self storage facility can be a difficult task. By utilizing the available tools and resources and selecting a management solution that is right for your business, investors can profit from this lucrative market.