A self storage property management company can better track its progress by monitoring key metrics; this helps the owner assess whether the company is healthy, competitive, and growing. Key indicators often include occupancy and performance, expense and revenue management, and daily operations, including customer service. Here are some recommendations to help track them:
Tracking Occupancy and Performance
Self storage facilities can maximize revenue by increasing occupancy rates. By monitoring trends, such as how many units are occupied and which units appear to struggle, patterns often emerge. Many of these patterns stem from leasing issues or seasonal declines; they may be addressed by increasing unit flexibility and implementing seasonal rate adjustments. Focusing on which patterns have the greatest impact helps self storage property management become more efficient.
Accurate financial reporting helps a storage business determine how and where to focus its resources. These overviews can guide a storage facility in assessing its financial sustainability; they’re often a prelude to recommending necessary changes. Some automated rental systems monitor occupancy rates, which can inform acquisition, retention, and marketing strategies.
Tracking Expenses and Revenue Management
Financial reports and analytical tools help self-storage property owners track and evaluate monthly financial performance using statements and budgets. These tools may include tracking revenue trends, monitoring expenses, and evaluating profitability; they also help assess unit availability. If a self-storage facility hasn’t changed its unit rates for an extended period and needs to adjust for something like inflation, these tools often help make the rates more competitive.
Some third-party property storage companies use software and market analysis to set optimal pricing. They may base rates on unit size, location, and seasonal demand; several systems offer business collection models to help reduce late payments. Some facilities adjust rates for month-to-month tenants as market values rise, enabling them to grow even when units are at full capacity.
Self-storage property managers often use online rental and management software to track payments and monitor inventory, both for their own sake and for their customers’. Because this technology provides real-time updates on available units, it can help potential clients and prevent double bookings that would affect both parties. Others offer automatic invoice generation and online transfers to the company’s bank account; accounting software is available to help address business tax and financial reporting challenges.
Tracking Daily Operations and Customer Service
Operations at a self storage property can include everything from customer service to facility maintenance. Tracking progress in these areas often involves new technologies, but monitoring also depends on assessments based on soft metrics, such as human judgment, qualitative data gathering, and peer evaluations. For hard metrics, new technologies and their tools can monitor and streamline processes, such as:
- Operational expenses, including property taxes and utilities
- Property management for rent collection, security, and maintenance
- Maintenance schedules to track, record, and manage or repair
Self-storage facilities should conduct inspections to determine whether storage units are in good condition; they can also be used to verify that maintenance and security equipment are functioning properly. Tenant satisfaction is sometimes reflected indirectly through effective customer service and maintenance efforts. Progress in these areas may also be reflected, in part, by a facility’s retention rate.
Track Your Self Storage Property Management
While the metrics your self storage property should focus on can change daily, a few key ones are worth exploring. These include paying close attention to how occupancy, finances, and daily operations intersect and how those relationships often reveal useful patterns. Those patterns can highlight where efficiencies or gaps exist and how they inform operational adjustments. If you are evaluating outside support, look for a third-party storage management company with experience tracking and interpreting these metrics.
