From The MSM Archives: It's a Choice! Spring Ahead Or Fall Behind By John Traver

Posted by MiniCo on May 14, 2013 12:00:00 AM

From The MSM Archives: It's a Choice! Spring Ahead Or Fall Behind By John Traver

Springtime in the self-storage business spells the beginning of opportunity for most facilities. Springtime usually means move-ins, new tenants, busy days, and hopefully a highly occupied facility by mid-summer. Unfortunately busy work does not always translate into our most profitable work. Sometimes, that busy season provides us with rentals that may only put us out in front temporarily. Springtime strategy should include the moves required to keep you out in front for the longer haul!

Consider these two processes when approaching the busy season:

  • Balance the type of tenants you are leasing to.
  •  Successfully manage your response time to all incoming leads.

The busy rental season can quickly put a facility into “reaction mode,” causing a sink or swim response to rentals. So before getting on the busy season “treadmill,” consider these strategies for your long-term growth!

Commercial vs. Residential Tenants

Current industry statistics show us that the average commercial tenant is worth roughly $2,000 more than the average residential tenant. The average rent is higher ($135 vs. $75) and the average commercial tenant stay is longer (24 months vs. 11 months) for a residential tenant. Year-round, operators should have a strategy in place for moving in two or three new commercial tenants each month—and this includes during the busy season! These are the months that will make your occupancy look a lot better when the fall and winter months roll around.

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