Self storage owners can take varied approaches to operating their businesses. Some enjoy being active in their company. Others are passive investors that are new to the industry and don’t have the experience to manage a successful business. The option for this type of owner is third-party management. To understand what a third-party management company can do to help owners reach their business goals, read the following article.
People get into the self storage business for good reasons. Self storage provides a stable, predictable income stream, low maintenance, and low operating costs compared to other types of real estate assets. Additionally, self-storage is a historically safe asset class with long-term growth potential. There are, however, varied approaches to operating this type of business.
Some owners enjoy being active operators who thrive on the challenges and tasks associated with running a successful facility. Others are passive investors who may be new to the industry and don’t have the expertise to manage a successful self storage business. Fortunately, there is an option that allows this type of owner to capitalize on the benefits of their investment: a third-party management company.
A third-party management company, like Pinnacle Storage Managers, with proven operational and marketing experience, can improve your profitability while minimizing the time you spend on day-to-day operations.
The Benefits of Using a Third-Party Management Company
Choosing a third-party management company to operate your self storage facility is one of the most important business decisions you will make. The following information will help you to better understand how a third-party management company can benefit your business.
Flexibility
A third-party management company gives you the flexibility of how involved you want to be in your business. You can participate in every aspect of your business, or you can step away and leave it up to the experts. Whatever you decide, be sure you’re working with a company that gives you the option of being involved as little or as much as you desire.
Cost Savings
Third-Party Management companies help you reduce expenses by allocating costs over multiple facilities. These cost savings will vary based on the size of the company. The more facilities your company has, the more savings you will realize in areas like maintenance, marketing, and property insurance. Long-term relationships with reliable vendors enable management companies to add value to your property. Collective buying agreements with call centers, credit card processing companies, marketing services, and countless other vendor contracts allow management companies to obtain substantial discounts.
Training
Your facility managers should be prepared to handle the ever-changing landscape of the self storage industry. Managers continually face new challenges, and they have to be on top of best practices and current technologies. Properly trained managers optimize your business more effectively and show increased job satisfaction, leading to less job turnover and happier customers.
Revenue Management
The right revenue management system can take the guesswork out of managing potential and actual revenue in order to maximize return. A Third-Party Management company has the technological tools to compete in the current environment. They can maximize your revenue because they understand the market, can predict customer activity, and measure customer reactions. When prices fluctuate, they will know how to respond.
Marketing Strategy
Most of the time you’re so heavily involved in everyday business operations that you lose sight of other priorities like how to attract traffic, convert leads, and manage your reputation. We can help you sort through the thousands of marketing technologies available and assist you with a performance-based marketing program. A relationship with the top self storage marketing company in the industry enables Pinnacle Storage Managers to implement the right marketing initiative to fit your business needs. We’ll work with you to plan, develop and execute strategies that yield results.
Accounting
You can depend on your management company to monitor your accounting processes while reducing your tax liabilities and increasing your profits. They will provide accurate financial data that will enable you to track expenses, manage cash flow, and capitalize on growth opportunities. Regular financial statements will keep you updated on your profitability, allowing you to make informed financial decisions.
Summary
Your facilities are unique in market, location, and personality. Choosing a third-party management company that will be good for your self storage business is one of the most important decisions you’ll make relative to your company performance. Look for a company with a passion for self storage, a proven track record, and a management style that fits with your company culture.