Investing in self-storage facilities can be a lucrative venture. However, it is also important to pay attention to the challenges and costs that come with managing staff, customer service, bookkeeping, and marketing. The good news is there is another option: remote self-storage management.
Remote management is revolutionizing the self-storage industry, offering a hassle-free solution that is both time and cost-effective. Let’s explore the game-changing benefits of remote self-storage management and why it’s an attractive option for those looking to increase the return on their investment and save time.
Dedicated Remote Management Team
One of the most significant advantages of remote self-storage management is eliminating the need for in-person staff. Instead, a dedicated remote management team handles all aspects of your business and works together to support the needs and growth of your facility. For decades, owners have relied on a single manager to be an expert on all aspects of a facility. That manager had to deal with every tenant communication, marketing the facility, and maintaining the facility while being a one-person sales army.
With remote management, you can rely on specialized departments that only focus on their respective areas of expertise. This allows for better efficiencies and significantly better performance of each task. In addition to better performance, cutting payroll might be an even bigger perk. Removing the on-site manager alone will decrease costs anywhere from $40,000 to $70,000 per year. According toSalary.com, the national average salary for a self-storage manager was $59,271 in July 2023. Being a remotely managed facility means you no longer have to worry about the complexities of managing employees or dealing with associated costs such as salaries, benefits, and insurance. Remote management provides ease that allows you to focus on other critical aspects of your investment.
Comprehensive Customer Service
Providing exceptional customer service is crucial in the self-storage industry. With remote management, there is sometimes a fear that the customer experience will feel less personal or that the team might lack information to answer specific industry-related questions. However, this is far from the truth. With remote management, you gain access to a professional call center that specializes in self-storage. The call center is staffed with knowledgeable representatives who handle customer inquiries, payments, and any issues that may arise.
A remote self-storage management company’s No. 1 job is to rent and reserve units. This utilization of a call center allows for a dedicated sales team that knows how to close rentals and upsell services. This special force can take hundreds of sales calls per day instead of the one to two sales a typical on-site manager might have in day. A facility cannot grow, maintain, and thrive without a healthy influx of new tenants. These remote call center experts ensure that every customer receives top-notch service, enhancing their satisfaction and increasing the likelihood of repeat business. Additionally, your customers will be able to get their questions answered quickly in their preferred communication style at the time of day that is most convenient for them.
Streamlined Bookkeeping And Financial Management
Remote self-storage management takes the burden of bookkeeping and financial management off your shoulders. A specialized accounting team handles day-to-day financial tasks such as rent collection, invoicing, and expense tracking. With advanced automated software and systems, they maintain accurate and up-to-date records, providing you with real-time financial insights. Having an accounting team that only deals with self-storage can save hours of time and countless headaches. This streamlines your operations and allows you to make data-driven decisions to optimize your investment.
Strategic Marketing Support
Marketing is crucial for attracting new customers and maximizing the occupancy rate of your self-storage facility. Remote management offers strategic marketing support to ensure your facility stands out in the market. Digital marketing is especially important in today’s market. We are seeing more price-sensitive tenants who are willing to commute farther for a better price, so making your facility easy to find online is crucial. The remote team leverages its expertise to develop targeted marketing campaigns, utilize digital advertising platforms, and optimize your online presence. By employing effective marketing strategies, remote self-storage management helps drive traffic to your facility, resulting in increased inquiries and higher occupancy rates.
Advanced Technology Integration
Remote self-storage management is at the forefront of incorporating advanced technology into facility operations. This includes implementing digital access systems, remote monitoring, and smart security solutions. Customers can conveniently access their stored belongings using digital locks and personalized access codes, enhancing the overall user experience. Remote monitoring systems allow you to keep an eye on the facility’s security and performance remotely, ensuring that everything runs smoothly, even when you’re not physically present.
The best part is that you can utilize whatever amount of technology fits your facility’s needs. You can use more high-tech products like Bluetooth locks and unit alarms. Or you may find your facility only needs lower cost products like combination locks and a simple integrated keypad. Remote management allows a wide range of management styles and costs to ensure your facility has exactly what it needs.
Other Ways To Maximize Efficiency
Serving the customer should be simple, and automation can support that. Chat services such as Swivl can help automate customer interactions by answering simple questions or connecting tenants to the correct person. Online rentals can also create a level of ease for the customer. They can easily make rental reservations at their convenience rather than waiting on hold or scheduling it during traditional working hours. Most of the modern facility management software allows for automated processes like texting, emails, calls, and even mailing. It has become easier than ever to replace the “old-school” manager tasks with more efficient and cost-effective solutions.
Maximize Returns And Simplify Operations
In the ever-evolving world of self-storage investments, remote self-storage management is revolutionary and cost saving. This innovative approach changes the industry by eliminating the need for in-person staff, providing comprehensive customer service, streamlining bookkeeping and financial management, offering strategic marketing support, and integrating advanced technology. Therefore, remote self-storage management is the way to go if you’re considering investing in self-storage facilities to maximize your returns and simplify your operations.
Hiring a remote management team will reduce expenses, increase revenue, enhance the customer experience, remove hiring challenges, and significantly lessen delinquency. Here are some examples of how remote management increased revenue and decreased operational expenses.
There was a storage facility recently purchased in Tennessee for $1.375 million. Copper Storage Management was their remote management team, and the investment was appraised for $4.2 million in less than 18 months after Copper Storage Management implemented changes. Copper Storage Management was able to achieve this substantial value add by cutting payroll costs, raising rates, and cutting collections.
In Holt, Mich., a 31,200-square-foot property was built for $1.8 million. After just 11 months, the property was at 74 percent occupancy, with $21,000 expected in monthly income. The current asset is valued at $2.8 million, but we expect the value to continue to grow to $3.8 million once the property is 90 percent occupied. Copper Storage Management was able to facilitate a quick lease-up by providing a fast and easy rental process for customers. Tenants can rent 24/7 on their own via the website or rent with a person 12 hours a day, 7 days a week, via their phone.
Investing in a self-storage facility does require thoughtfulness, intentionality, and preparation. However, the long-term investment can outweigh the upfront time and energy if you invest wisely. Using a self-storage management company like Copper Storage Management will provide peace of mind while simultaneously saving you money.
For the last five years, Brett Copper has worked with hundreds of self-storage owners and operators on management, marketing, acquisitions, feasibility, and training for facilities all over the United States. Seeing a growing need for alternative management solutions in the industry, Brett, along with the rest of the Copper family, created Copper Storage Management. Today, Copper Storage Management has become the largest (non-REIT) third-party management company specifically catering to remote self-storage facilities, and currently manages nearly 200 stores nationwide.