Self-storage property management is an attractive, hands-off method of real estate investing compared to more traditional methods. However, even though it may be less work than managing an apartment complex or single-family home, self-storage management still requires a lot of time and effort from the owner.
Because of this, some landlords choose to outsource their management responsibilities. Self-storage management companies take on many of the day-to-day tasks that owners normally handle and ensure that the business runs smoothly while the owner tends to other matters.
Below are some of the key responsibilities and benefits that come with hiring a self-storage management company.
Primary Responsibilities
Anything involved with keeping your self-storage business up and running (like marketing, lease agreements, training, etc.) can be completed by your self-storage management company. You, the owner, hire them to take some or almost all of the management tasks off your to-do-list. So, what are some of the specific responsibilities that management companies handle?
Policy and Procedure Standardization
Hiring a self-storage management company can be an advantage because of the breadth of experience and knowledge they possess. They know which industry standards and common rules should be followed, so standardizing your facility’s policies are one of the tasks they may do for you. Although you know your business better than anyone, management companies know the self-storage industry better as a whole, so they can suggest and inform you on what methods you can implement to organize your business practices.
Rent Collection
Collecting rent is the most important part of keeping your business profitable. Consistent revenue is crucial to any real estate investment venture, and self-storage management companies can help you stay on top of rent collection using online tools and storage unit software. Usually, your management company will help you implement these tools and then monitor them, since rent collection is largely automated. This monitoring process will ensure that you are getting your funds in a timely and consistent manner.
Financial Reporting
For some, the accounting aspect of business management is confusing and anxiety-inducing. Thankfully, when you hire a management company, they handle the bookkeeping and calculation responsibilities of the landlord. They can calculate, analyze, and present important financial metrics in a readable and understandable way. They can also organize your data in a way that makes tax season much less stressful since all your important documents are already streamlined and ready to send off to your accountant or tax professional.
Regular Reporting
Beyond financial reporting, a self-storage management company should always communicate with you, the owner, regarding any concerns with the property. Keep in mind that the facility is yours and you have invested your hard-earned money into it. Your management company works for you and should be keeping you abreast of all the happenings within your business. A good management company will give you all the required information and allow you to make the important decisions.
Alternatives to Self-Storage Management Companies
Some landlords have trouble relinquishing control in their business. This is completely understandable, and luckily there are alternatives.
If you want to manage your self-storage facility on your own, it’s best to learn and utilize technology in your self-storage units. You can install electronic/keyless entry and research quality property management software platforms to streamline, automate, and monitor your business.
Hiring a team of employees to manage certain aspects of your business may be helpful as well. You can hire leasing agents or a security team to take some management responsibilities off your plate.
Conclusion
You should consider hiring a self-storage management company if you own multiple facilities, need expert advice, or want to scale your business. Although taking this jump does require some access to capital, the potential for your business to grow and thrive is high. You can’t go wrong with hiring a self-storage management company, so take the information above into account and continue to do your own research to decide if this route is what’s best for you.
