3rd party self storage management companies help small- and medium-sized operators run their businesses. These companies handle almost all daily operations in exchange for a share of your profits.
The right management company can boost your returns despite the upfront costs associated with their services. Here are more details on self storage management:
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What Is 3rd Party Self Storage Management?
3rd party self storage management involves using another company to work between you and your customers or tenants. In self storage, the company runs the daily operation of your business. They can take payments, perform maintenance, run your marketing, talk to customers, etc.
Some companies may involve you in decision-making. Others may not need your input except when it involves cash checks. Many operators use third-party management as it takes the headache out of operating a business.
These companies deal with most problems in exchange for a certain percentage of the profits. They have the expertise to do most of the work needed to operate your self storage business.
What Are the Benefits of Self Storage Property Management?
If you own several facilities spread out over different places, getting a good return on your self storage business can be hard. For this reason, some owners may turn to third-party management companies specializing in the self storage industry. Here are the benefits of hiring a management company:
Reputable management companies hire professionals in the self storage industry. These professionals have hard-earned experience and a wealth of knowledge that can benefit your self storage business.
They know how to hire and manage their staff. They can find the right people to clean your facility, talk to clients, fix broken parts, etc. These professionals also know ways to save money, such as doing preventative maintenance and identifying areas to upgrade.
A management company can access your area and identify the right pricing for your business. The process requires expertise and can take time if you want to optimize it by yourself. These companies have protocols set up to change pricing depending on different conditions.
Management companies can handle your marketing. This service can be valuable if you have a new business with no existing client base. They can help you create a website, create branding, plan ad campaigns, and other marketing strategies.
What Should You Look For in a 3rd Party Management Company?
Before signing up with a specific company, select the right one for your needs. When evaluating potential possible companies have these considerations in mind:
The company should be licensed to provide self storage management services in your area. A license proves that they are legitimate. Your state has different rules and regulations in place for getting a license. Once the company is licensed, it must follow the state’s regulations.
Find out the fees charged and how the company calculates them. Many management companies charge a specific percentage of your business’s gross income. The percentage can decrease or increase based on the size of the facility. Consider also any other additional fees such as maintenance or setup.
A reputable company should offer a clear vision of the quality of service they provide to storage customers.
Find out how they maintain control over each property and how often their representatives visit each site. Get to know their audit procedures and if they have a contingency plan in case of an emergency.
Find out the level of training provided to new employees and how applicants are screened. A good company should offer continuing education to seasoned staff. Ask if the managers are employees of the property management company or if they are your employees.
If you trust your self storage business to a management company, you need to know they can optimize it for maximum success.
Hire a 3rd Party Self Storage Management Company
Find a self storage management company that offers personal storage solutions with attention to detail as they work with you through the rental process. Choose one with a good track record and proven ability to decrease expenses, increase occupancy, and meet your goals.
They should provide competitive, honest upfront pricing with no hidden fees or deposits. Prioritize a company specializing in self storage management to get consistent and quality services.