People who utilize self-storage units are people who own an excessive amount of tangible items that they do not have space for. However, these goods are valuable enough — whether emotionally or financially, to keep and pay to store. People trust that their material possessions are safe and accessible and agree to pay the price for ease and peace of mind. Security cameras around a facility provide tenants with a sense of safety and security. There is a continual demand for self-storage, and therefore, owning or investing in a self-storage facility can be incredibly beneficial, especially if you know how to maximize your self-storage profit margin.
Why Invest in Self-Storage?
Self-storage is a giant industry; it’s also a very profitable one. According to One Desk, “the global self-storage market was valued at $48.02 billion in 2020,” and “the average profit margin of the self-storage industry is 41%.” This is significant, especially when compared to other businesses. Additionally, “more than 90% of the self-storage industry is in the United States.” While self-storage might not be discussed as casually as flipping single-family houses is, the investment is worth it.
Wondering How to Maximize Your Self-Storage Profit Margin?
If you’ve already invested in or are considering investing in self-storage, there are many ways you can maximize your self-storage profit margin. Here are five of the most powerful ways to save money and squeeze every dollar out of your investment.
1) Keep Your Units Full
This may sound obvious, but there are important tactics to consider when considering how to keep your units full. This is how you’re bringing in revenue right? It’s one thing to bring in new customers; it’s another thing to retain long-term customers. Many companies make the mistake of investing in one-time market research at the beginning of an investment but failing to revisit it. Thoroughly research your competitors, especially local competitors. Compare rates, target audiences, messaging, etc. to thoroughly understand the marketplace. Provide specials for customers who agree to longer terms and reward long-term clients with access to amenities or discounts. Additionally, use quick surveys to ask customers about their experience to gain further insight.
2) Optimize Your Website
Your website is your best salesperson! It’s how many of your customers will find you. Spend the time to invest in building a robust site where customers can view services, read testimonials, make online payments, and easily chat with a support team. Additionally, optimize the back end of your website as well by taking the time to do some keyword research and execute a thoughtful SEO strategy. This is how clients who are searching for generic non-branded phrases will find you! You might even consider taking the time to contribute to a blog to have regularly updated and relevant content available on your website for Google to crawl. Also, your website should be efficient, user-friendly, intuitive, and consistent.
3) Lower Expenses With a Remote Management Team
Hiring a remote management team will help maximize your self-storage profit margin. You will save money on a full-time in-person staff, and instead, invest a fraction of the cost into a team that can handle everything from talking with potential new customers to signing leases to assisting a new customer access their new unit. This team can also implement a remote call center and assist in revenue management. These services not only save you money but also provide you with peace of mind.
4) Invest in Marketing
While “near me” searches are beneficial, and you should list your business locally, marketing services can take your self-storage investment to the next level. Brand recognition can create a consistent look and feel for your company, and graphics like facility signage will help draw customers in. Pay-per-click campaigns can help potential customers easily find you through sponsored ads. Using SpareFoot to increase where your site is ranked in search is another avenue to obtain rentals.
5) Consider Maintenance Consulting
Maintenance requests can be very frustrating and time-consuming. Maintenance requests must be fulfilled timely and efficiently for customers. By investing in maintenance consulting, which can also be handled by your remote management team, you can efficiently handle your maintenance requests with ease.