This is Part 10 of a multi-part series on investing in Self Storage assets.
Today’s post will focus on considerations to keep in mind for management and operations of this asset.
Many people falsely assume that self storage involves a simple management process. This may be true for facilities designed in the 20th century and those that don’t have the technology that’s available today, but that’s not the case with the high tech facilities of today’s marketplace.
The increasingly competitive nature of self storage has intensified the management requirements associated with running a facility. Today, more emphasis is placed on hiring and training management personnel. Recent innovations in management techniques include the widespread use of computer software designed for self storage operations and the addition of auxiliary businesses to the self storage complex, thus increasing the use of a manager’s time. Professionally trained managers, well versed in sales, customer service, marketing, light maintenance, accounting and computer operation, etc. are the keys to a successful business.
A recent development is the growth of professional management companies that focus on self storage. These companies can provide management for multiple facilities, belonging to different owners. The management company would be responsible for hiring the managers, training, and providing supervision through a well established chain of command. Other services include pre-development projects, monthly financial reports, customer invoicing, payroll, accounts payable, etc. The typical management fee can range 6-8% of the monthly gross income or a flat fee, whichever is higher during the initial stages or lease up. Inexperienced operators may find it beneficial to use a management company during the rent up period to affect a quicker rent up schedule.
If you’d like to know how you can invest in self storage alongside me, send an email to email@example.com and let me know. Or, if you want to have a discussion with me about self storage, use this calendar link to set up a call with me – https://calendly.com/marklivingston