Every market presents a different scenario, which means there is no one-size-fits-all pricing strategy. For example, when comparing average rate data for the top five states by search interest to the bottom five, the bottom five actually had higher rental rates on average than the top five. One might expect higher rents in markets with the most demand, but this is not always the case. States with higher demand tend to be more competitive in pricing. Operators in these areas often rely on discounts and promotions to attract and convert tenants. This effect is most pronounced in densely populated urban and suburban markets where operators are concentrated. Many high-demand markets are also still absorbing new supply from the last development cycle, which further limits price growth.

In contrast, states with lower search demand typically have more limited self-storage supply. Operators in these markets have more pricing power and flexibility to experiment with rent increases. They often benefit from a more stable and mature tenant base, particularly in select suburban and rural areas.

Pricing Strategies for Self-Storage Operators

When setting a pricing strategy, operators need three key pieces of information:

• The level of demand in the market

• The current supply in the market

• The facility’s occupancy objectives

From there, operators can adopt a pricing strategy that aligns with their goals, whether pushing rates or raising occupancy. Three main strategies are commonly used in the self-storage industry.

Market-Based (Dynamic) Pricing

Market-based pricing, also known as dynamic pricing, adjusts rates in real time based on factors such as local demand, occupancy, and competitor activity. Automated revenue management systems raise rates when units are filling quickly or competitors increase theirs, and they reduce rates or offer promotions when demand softens. This approach is widely used by REITs and large operators who rely on data-driven optimization.

The advantage of market-based pricing is its ability to maximize revenue per unit while responding quickly to local demand shifts. However, frequent rate changes can confuse or frustrate tenants, and dynamic models require accurate data and active monitoring. 

A market-based strategy is best suited for competitive markets with moderate to high demand and balanced supply, where the goal is to grow revenue and optimize yield rather than simply fill units.

Storable Easy offers automated revenue management, which provides rate recommendations based on changes in facility occupancy. This simplified and cost-effective approach to market-based pricing allows operators to optimize rates relative to demand while maintaining control of setting rates.

Value-Based (Segmented) Pricing

Value-based pricing sets rent according to perceived customer value. Units with features such as climate control, drive-up access, or convenient locations can command higher rates. Pricing can also vary by customer type, including students, movers, or businesses, based on their willingness to pay. This approach emphasizes the unique advantages and convenience of the facility rather than competing solely on price.

The strength of value-based pricing lies in aligning rates with customer experience, allowing operators to capture higher margins without relying on discounts. The main challenge is understanding customer behavior and clearly differentiating the facility to justify premium rates. This approach works best in markets with steady or growing demand and moderate supply, where the goal is to maintain occupancy while improving overall revenue quality.

Cost-Plus (Baseline Margin) Pricing

Cost-plus pricing is the most straightforward approach. Operators calculate operational costs and add a target profit margin. Rates are typically reviewed periodically rather than adjusted continuously, making this model appealing to smaller or independent operators who prioritize simplicity and predictability.

This approach is easy to manage and builds customer trust through stable, transparent pricing. The tradeoff is that it may miss revenue opportunities during high-demand periods or struggle in highly competitive markets. Cost-plus pricing is most effective in areas with low to moderate demand and stable supply, where the primary goal is to maintain occupancy and steady cash flow rather than chase rapid growth.

What About Low-Demand, Over-Supplied Markets?

Markets with low demand and high supply present the greatest challenge. In these conditions, the main objective shifts from maximizing revenue to driving occupancy and retention. A full facility, even at lower rents, is often more valuable than empty units with premium pricing.

Operators in these markets often rely on aggressive move-in discounts, short-term promotions, and flexible lease terms. Combining market-based pricing with value-based strategies, such as bundling free amenities or emphasizing service quality, can differentiate a property without eroding perceived value. Cost-plus pricing is generally less effective unless costs can be substantially reduced. Success in oversupplied markets depends on flexibility, creativity, and maintaining customer loyalty.

Choosing the Right Strategy

Selecting the right pricing strategy depends on where a facility sits in its local market cycle and its short-term goals. In competitive, high-demand areas, market-based pricing can help operators maximize revenue from every unit. In stable markets, value-based pricing can strengthen margins and build customer loyalty. Cost-plus pricing provides consistency and simplicity when market conditions are predictable.

Many operators find that blending strategies works best. Using dynamic tools for move-in promotions while applying value-based principles for long-term tenants can balance growth, stability, and profitability. Whatever your pricing approach, operators who carefully assess supply, demand, and occupancy objectives are best positioned to achieve their revenue and retention goals.

With features like automated revenue management, Storable Easy delivers effective tools and services to power your self-storage business. Reach out to us to get started.

The post 3 Pricing Strategies for Self-Storage Operators and When to Use Them appeared first on Storage Unit Software.

The industry is always changing, and whether you this is your first rodeo or you are a seasoned pro, knowledge is power. The more you know, the better you can adapt to market conditions or adjust your marketing to generate new business. 

We will update this page as new information comes in, so be sure to check back often.

How Big is the Self-Storage Industry?

• 57,900 self-storage facilities currently operate in the United States. 
• 2.6 billion square feet of self-storage space is available in the United States
• There is 7.83 square feet of self-storage space per person in the United States
• Texas has the most self-storage facilities of any state with more than 6,200 facilities 
• The self-storage market is projected to grow to $68.75 billion in 2025. 

Self-Storage Industry Trends

Self-Storage Rental Rate Trends

The average cost to rent a 10×10 self-storage unit was $105.09 per month during Q1 2025. That is 7.8% lower than the same time period last year.

Self-Storage Occupancy Rate Trends

Occupancy has declined slightly over the past year, with operators shedding 1% during that time. 

Self-Storage Industry Ownership

• The majority of self-storage facilities are owned and managed by independent operators.
• Five public companies (REITs and U-Haul) own about one-fifth of all storage facilities.
• The market share of the public companies dropped to 20.9% in 2024, down from 22.5% the previous year. Smaller operators gained market share.

Self-Storage Customer Behavior

• 11% of U.S. households are using a self-storage unit
• 72% of tenants rent a storage unit for the purpose of long-term storage
• 46% of tenants are using storage for items they do not have room for in their primary residence
• 58% of renters rent from the first facility they contacted
• Millennials make up the largest share of self-storage customers, making up 38% of renters
• 49% of self-storage renters stay for more than one year, 24% stay for more than 2 years.
• 54% of U.S. households dedicate between 100-500 square feet of space in their homes to storing belongings.
• 39% of households have converted a guest bedroom into a storage space at home in the last year.

Self-Storage Technology

• Automatic recurring credit card payment is the top most preferred payment method for 19.3% of storage renters 
• 71% of facilities use access control keypads 
• 36% of potential customers are open to entirely remotely operated self-storage facilities
• 25% of customers would be willing to pay more for 24/7 access
• 63% of storage tenants use online search engines to find self-storage facilities

Sources: 

2025 MSM Storage Almanac

2023 SSA Demand Study

Storable Industry Pulse Report

MSM and Janus Industry Survey, 2024

Storable Tenant Insights Report

Storable Cost of Clutter Report

The post Self-Storage Industry Facts & Figures appeared first on Storage Unit Software.

The industry has quietly become a go-to strategy for smart investors looking to diversify their portfolio. Why? Because self-storage facilities are simple to operate, resilient in economic downturns, and driven by a basic human need: storage space. From downsizing Boomers to urban renters with too much stuff, demand isn’t going anywhere. And now, thanks to technology, it’s easier than ever to run a self storage business remotely.

But how passive is running a self-storage facility, really? 

Let’s break down how to turn storage units into a serious low-hassle income stream.

Why Self Storage Investing Works

Traditionally running a self-storage business could be fairly intensive, requiring paperwork and budgeting for multiple tenants coming on and off the rent rolls on a regular basis. In addition, staff would be required to take phone calls and interact with walk-in customers. 

Thanks to modern technology, storage businesses today can be effectively managed remotely without daily hands-on effort or hiring full-time employees. With the right tools and systems in place,  it is completely possible to turn your storage investment into a passive or semi-passive income stream.

So, what do you need to make it happen? 

1. Choose a Management Software: Automate to Accumulate

One of the key tools to making your self storage business truly passive is choosing the right management software. The best platforms automate almost everything—billing, late fees, tenant communication, and so on. They also automatically compile reporting on business performance, giving you a live look at occupancy rates, payment status, and earnings. 

Choose a management solution that offers online move-ins, which enable customers to sign their lease agreements electronically. With an integrated mobile-friendly website, customers can self-service their account and pay rent through an online portal. Encourage Auto-Pay to ensure a continuous stream of revenue while reducing delinquency. 

2. Go Remote with Cloud Access Control

When operating remotely, keeping your self-storage investment secure is a topmost concern. 

With cloud-based gate and unit access control systems,  it is easy to generate gate codes for new tenants and send them securely to their mobile devices. Logs track who comes and goes, and you can grant access or revoke it instantly. These systems are not only convenient, they’re essential.

Once inside the gates of the facility, tenants with access can make their way to their unit. Generally tenants are required to provide their own lock for their unit. With unmanned facilities, a vending machine that dispenses locks provides convenience to customers and generates additional revenue for your business. 

3. Target Customers with Online Marketing

People searching for storage units go straight to Google. So meet them there. Use SEO, paid ads, and listings on aggregator platforms to fill units fast. With online leasing, your customers can sign contracts, pay, and get access without ever speaking to you—or anyone. 

Social media is another key place to advertise, as your ads can be matched to profiles of likely movers or other demographics showing a propensity to need storage services in your area. This allows for more efficient marketing spending, which yields predictable and scalable results. 

Self-storage is a competitive business, and the large real estate investment trusts are heavy online marketers. Beating them at their own game requires knowledge and expertise and the learning curve can be significant. That’s why outsourcing your SEO and online marketing is often your best bet, especially if your aim is a truly passive income stream.

4. Boost Income Streams with Add-On Services

Want to maximize your cash flow? Don’t just rent the box—sell the extras:

• Add vending machines for boxes, locks, or snacks. 
• Create space for outdoor boat and RV storage, which commands premium pricing.
• Lease rooftop space for cell towers or solar panels
• Offer tenant protection plans and share earnings while protecting your customers’ stuff. 

All of these expand your income potential with very little additional effort.

5. Reduce Overhead, Maximize Margins

Remote management = less payroll. And with the right tools, you can also reduce utilities and maintenance costs as well. Install motion-detecting lights, climate control systems, and even AI-based customer service tools. All of these reduce labor and energy use—while improving the tenant experience. That’s what makes the self storage industry so powerful: you can leverage technology to create a lean, profitable machine.

Reinvest and Profit Long Term

In a world of noisy investments and risky startups, self-storage stands out as something refreshingly simple. People always need space. With the right tech and strategy, you can meet that need—and get paid for it—without trading your time for dollars.

As cash flow builds, reinvest. Pay off any loans, upgrade your facility, or buy another one. With strong due diligence and initial legwork, self storage investing can become a long-term strategy for wealth building and financial freedom.

The post Can You Generate Passive Income with Self-Storage? appeared first on Storage Unit Software.

As we delve into the various aspects of modern self-storage operations, we’ll examine how small operators can leverage their unique strengths to meet and exceed customer expectations. From embracing new technologies to refining security measures and pricing strategies, this guide aims to provide a comprehensive roadmap for success in the evolving self-storage landscape of 2024 and beyond.

1. The Changing Landscape of Self-Storage Demand

Data from Storable Tenant Insights Report 2024 reveals that 43% of survey respondents are considering moving within the next year. However, our latest poll shows that number has increased to ~60%+, fueled in part by the Federal Reserve signaling nearterm rate cuts. This statistic highlights a potential surge in storage demand, especially if interest rates decrease as anticipated. For small operators, this presents both an opportunity and a challenge.Key Takeaways for Operators:

• Prepare for increased demand by optimizing your space utilization.
• Consider flexible lease options to accommodate short-term storage needs.
• Stay informed about local real estate trends to anticipate demand fluctuations.

2. Balancing Technology and Personal Touch

While technology plays an increasingly important role in self-storage, the human element remains crucial. Our Tenant Insights Report indicates that 31% of respondents consider technology very important when choosing a facility, but 39% also prioritize responsive customer service.Strategies for Operators:

• Implement user-friendly online booking and payment systems.
• Offer a mobile app for unit management and access control.
• Maintain a personal touch with on-site staff for customer assistance.
• Train staff to provide exceptional customer service, differentiating your facility from larger, more impersonal competitors.

Consider integrating management software that blends advanced features with an intuitive user experience. This approach can enhance your technological capabilities while supporting your commitment to exceptional customer service, and help streamline operations while maintaining a personal touch.

3. Security: A Top Priority for Tenants

In the self-storage industry, security is not just a feature—it’s a fundamental expectation that can make or break a facility’s reputation and success. In fact, we found that theft prevention is the most significant concern for 43% of respondents when choosing a storage facility. This statistic highlights a critical area where small operators can differentiate themselves and build trust with potential customers.

Enhancing Security for Facilities:

• Install modern security systems, including surveillance cameras and access control.
• Consider individual unit alarms as a premium feature.
• Regularly maintain and update security infrastructure.
• Communicate your security measures clearly to potential and current tenants.

Learn more about Tenant Protection and how it can bolster your security infrastructure and provide peace of mind to your tenants.

4. The Price-Value Equation

Pricing strategy in the self-storage industry is a delicate balance between competitiveness and profitability, complicated by varying customer perceptions of value. Our Insights Report provides crucial insights into this dynamic, revealing that while 69% of respondents cite price as a very important factor, many are willing to pay more for premium features. This presents a nuanced opportunity for small operators to differentiate themselves in a price-sensitive market.

Pricing Strategies for Operators:

• Offer tiered pricing based on features like 24/7 access, climate control, and enhanced security.
• Implement dynamic pricing to optimize occupancy and revenue.
• Create value-added packages that bundle storage with additional services.

5. Marketing in the Digital Age

In today’s digital-first world, effective marketing is crucial for small self-storage operators to stand out in a crowded marketplace. The report highlights the importance of online visibility, with 63% of respondents learning about storage facilities through online search engines. This statistic reinforces the critical role of digital marketing in attracting and engaging potential customers.

Digital Marketing Tips for Operators:

• Optimize your website for local SEO to improve visibility in search results.
• Encourage and manage online reviews, as they significantly influence customer decisions.
• Utilize social media for community engagement and to showcase your facility’s unique features.
• Consider targeted online advertising to reach potential customers in your area.

SEO & Online Marketing services can amplify your digital presence, helping you attract more customers and stand out in search results.

6. Adapting to Diverse Customer Needs

The self-storage industry serves a wide array of customers with varying needs and motivations. The Storable Tenant Insights Report 2024 highlights this diversity, noting that 40% of respondents use storage for moving, 18% for downsizing, and 13% for lifestyle changes. Understanding and catering to these diverse needs is crucial for small operators looking to maximize occupancy and customer satisfaction.

Catering to Varied Needs:

• Offer a range of unit sizes to accommodate different storage requirements.
• Provide resources and tips for efficient packing and storage.
• Consider specializing in niche markets, such as business storage or vehicle storage, to differentiate your facility.

7. Emphasizing Cleanliness and Maintenance

In the post-pandemic era, cleanliness and facility maintenance have become more important than ever in the self-storage industry. Customers are increasingly aware of hygiene and expect storage facilities to maintain high standards of cleanliness. A well-maintained facility not only attracts new customers, but also encourages existing tenants to stay longer.

Best Practices for Small Operators:

• Implement and communicate regular cleaning and sanitization protocols.
• Maintain well-lit, clean, and organized facilities.
• Regularly inspect and maintain units to prevent pest infestations and environmental damage.

8. Leveraging Data for Informed Decision-Making

In today’s competitive landscape, data-driven strategies can give smaller operators a significant edge. The ability to collect, analyze, and act on data can lead to more informed decision-making, improved operational efficiency, and enhanced customer experiences. For smaller self-storage operators, leveraging data effectively can be a game-changer in competing with larger, more resource-rich competitors.

Harnessing Data for Success:

• Utilize management software to track occupancy rates, customer preferences, and revenue trends.
• Analyze seasonal patterns to optimize pricing and promotions.
• Use customer feedback and surveys to continually improve your services.

For smaller self-storage operators, success in 2024 and beyond hinges on adapting to changing customer expectations while leveraging their unique strengths. By focusing on personalized service, strategic use of technology, robust security, and targeted marketing, small operators can not only compete, but thrive in this evolving landscape.

The key to standing out in a crowded market lies in your ability to offer a more personalized, flexible, and data-driven service. Small operators have the advantage of agility – you can quickly adapt to market trends, implement new technologies, and adjust your offerings based on customer feedback. This responsiveness, combined with a deep understanding of your local market, can be your greatest asset.

The importance of building strong customer relationships cannot be overstated. In an industry where customer trust is paramount, your ability to provide a face to your business, to remember customers by name, and to go the extra mile in service can create loyal customers who not only return, but also recommend your facility to others.

As you implement these strategies, remember that the goal is not just to meet current customer expectations, but to anticipate future needs. Stay informed about industry trends, keep an open dialogue with your customers, and be willing to innovate. Whether it’s offering new services, adopting emerging technologies, or finding creative ways to add value to your storage solutions, your willingness to evolve will be key to your long-term success.

Are you ready to elevate your self-storage facility to meet modern customer expectations?

Request a free demo today. 

The post Evolution of Self-Storage: Meeting Modern Customer Expectations in 2024 appeared first on Storage Unit Software.

So what exactly is a merchant cash advance and how can it help facility owners?

A merchant cash advance is a type of financing that provides cash upfront in exchange for a percentage of future sales. This can be a great option for storage facility owners who may have trouble securing traditional loans due to a lack of collateral, operating history, or a less-than-perfect credit score.

EES Capital vs. Traditional Financing

While a cash advance isn’t the ideal option for every financing need, it does carry several advantages that we believe make it one of the most accessible and simple capital options for facility owners today:

Fair Access

One of the biggest challenges for SMBs is access to capital – 50% of SMBs had less than a month of cash buffer on hand. Accessing funding from traditional lenders is difficult and time-consuming. Lengthy applications often require personal credit checks and substantial operating history. ESS Capital requires no application or credit check. Owners are pre-approved for an offer based only on their bookings performance.

Flexible Payments

Merchant cash advances are unique in their payment flexibility. Rather than being tied to a fixed monthly repayment schedule like a term loan, the payment of the cash advance is based on a fixed percentage of sales. This means that if sales are slow, the payment amount will be lower, and if business is booming, the payment amount adjusts accordingly. This is ideal for facility owners that are concerned about the minimum monthly payment requirements of a traditional term loan.

Fast Funding

Funding speed is another significant benefit of cash advances. Unlike traditional loans, which can take weeks or even months to be approved and disbursed, merchant cash advances through ESS Capital can be funded in as little as 1-2 days. This means that storage facility owners can get the cash they need to make necessary repairs or upgrades to their properties, or to invest in marketing efforts.

What Can I Use Capital For?

Remodel & Repair

Whether your facility needs some light TLC or a full refresh, a cash advance can quickly get you the capital you need for upgrades. Renovations give new and existing customers peace of mind that their items will remain safe and secure.

Marketing

Even the most convenient and up-to-date facilities still need to drive leads through a mix of traditional and digital marketing efforts..

Expansion

You can use capital to help fund the purchase of your next facility and grow your portfolio.

Security

Safety and security are paramount for customers. Use your funds to add peace of mind with the security measures and equipment that are right for your facility.

If you’re a facility owner looking to grow your business, a merchant cash advance may be right for you. With its flexible payment terms and fast funding, it can be a great way to access the financing you need to take your business to the next level.

The post Why We Introduced ESS Capital appeared first on Storage Unit Software.

Creating a lease agreement can be a daunting task. Because of this, you may wonder if taking the time to create one is worth the effort. The short answer is absolutely! Lease agreements are one of the most important aspects of a self-storage business because it protects the facility owner and the business. Below are a few reasons why it is important to create a cohesive and complete lease agreement.

1. Outlines the rules of the facility. A good lease agreement should reflect upon the rules of the facility. For example, it should outline the hours tenants are allowed to enter the facility, what the facility allows tenants to store in their units, cleanliness requirements, and even information about giving notice before vacating the unit.
2. States require certain information. In most states there is information that is required to be given to customers. (Reach out to your state association to find out what your state requires.) It is easiest (and safest) to give them the information via a contract that they are required to sign. This protects you and your business in case of any legal issues.
3. Legal standing for collection. Because a lease agreement is a legally binding contract it outlines the cases in which you are able to lock tenants out of their units. It can protect you from lawsuits regarding tenants being unable to access their belongings.
4. Protects you from liability issues. Lease agreements typically include clauses to protect the facility owner from liability for a number of things. One specific liability clause mentions that the owner has no liability for tenants belongings or anything that happens to them.

These are just a few- among many- reasons why a lease agreement is extremely important to have and to always have signed.

**For more information on laws in your state, and requirements for your agreement reach out to your legal advisor or state association.**

The post Lease Agreements: Why? appeared first on Storage Unit Software.

Easy Storage Solutions recently released two-way texting! This means you can send and receive text messages to your customers right from the software.

Once your customer receives the custom text message they can reply to it from their cell phone and it will show up in your self-storage software where you can view their response and reply to it. The software will also track any automated text messages sent out such as invoice reminders. You’ll be able to view these in the same conversation view as your custom text messages!

This feature is now available in the United States and Canada! To learn how to enable two-way texting check out this article.

Additional Updates

Easy Storage also released some additional updates in the month of June including:

• Units Can Now Be Rotated on the Site Map
• Daily Close Batch Report
• Occupancy & Occupancy History Reports
• Recurring Fees Shown on Customer Profile
• Due Date for Fees & Products
• Allow Managers to choose Default Login Page
• Limits on Reservation Length

For more information on these awesome updates check out this support article!

The post Recent Software Updates appeared first on Storage Unit Software.

What is Tenant Protection?

Tenant Protection is a convenient way for an owner to offer an affordable form of protection to their tenants. Offering Tenant Protection is free of cost to the owner; in fact, owners can generate revenue from these plans! Tenant Protection provides coverage against a number of major issues such as: theft, vandalism, fire/smoke damage, rodent/vermin damage, and more!

How does Tenant Protection benefit your customers?

Your customers will have peace of mind knowing they are covered from most major problems, and there is no deductible!

How does Tenant Protection benefit you and your business?

Tenant Protection is not insurance and therefore does not have the same red tape and regulations, so no licensing of any kind is required. There are also fewer regulations on compensation; meaning that you can even generate revenue for your facility! Victor Gonzalez (Easy Storage’s Tenant Protection Specialist) says: “Facility owners should offer Tenant Protection Plans because your tenants won’t have to worry about making a claim against their homeowners or renters insurance. Additionally, by offering protection plans, you reduce your liability and have a set procedure ready if tragedy does happen. Even better, you now have an additional source of revenue for your self-storage business”.

Easy Storage Tenant Protection Program

Easy Storage Solutions now offers in-house Tenant Protection Plans (TPP) for our clients! These plans are fully integrated into our management software, are backed by Easy Storage’s dedicated support team, and offer the same great benefits as previously discussed! Additionally, Easy Storage Solutions provides online claims support for your tenants, keeping your involvement to a bare minimum! There are various plans available for your tenants; Click here for more information!

References:

1. Schaller, M. (2018, February 05). The Facts About Self-Storage Tenant Insurance vs. Protection Plans. Retrieved from https://www.insideselfstorage.com/insurance/facts-about-self-storage-tenant-insurance-vs-protection-plans
2. Tharpe, S. (2017, November 28). Why You Should Offer a Self-Storage Tenant-Insurance Program and How to Get Customer Buy-In. Retrieved from https://www.insideselfstorage.com/companies-and-products/why-you-should-offer-self-storage-tenant-insurance-program-and-how-get

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As interest rates rise and the prospect of a market correction looms, many lenders are tightening standards across the board. That means borrowers in the self-storage space may have to consider an array of different lending options, including new alternative approaches to finance.

If you are seeking funding for your self-storage business, consider the following sources of finance:

• Merchant cash advances for self-storage
• Lines of credit for self-storage
• SBA 504 loans for self-storage
• SBA 7(A) loans for self-storage
• Conventional loans for self-storage
• Bridge loans for self-storage
• Construction loans for self-storage

Merchant cash advances for self-storage

Merchant cash advances provide easy to access funding that can be used to help run and grow your business. Cash advances are not loans and don’t charge interest. Rather, you agree to sell a portion of your future sales in exchange for financing now, with just a simple, fixed fee.

Additionally, because your payments are tied to a percentage of your sales, a cash advance is more flexible than traditional financing. If your sales slow down, the amount of your payment goes down as well. If your sales go up, you’ll pay a little bit more. You can use a cash advance to pay for any business expenses you have. There are no sign-up, late, or annual fees.

Lines of credit for self-storage

A business line of credit from a lender may also be used to help pay short-term expenses for a self-storage business. You use a line of credit only when you need it and pay interest on any amount that you borrow. In that regard, it’s similar to a credit card.

SBA 504 loans for self-storage

One of the best financing options for self-storage owners are SBA 504 loans. They are an especially good option for operators that aren’t able to qualify for conventional financing.

The 504 loan provides long-term, fixed-rate financing of up to $5 million for buying, building or rehabbing a self-storage facility. SBA loans are issued by community development corporations (CDCs). CDCs work with banks and credit unions to fund loans.

504 funds can be used to buy existing buildings or land, build new facilities, or to improve and modernize existing facilities. Funds cannot be used for working capital or repaying debt. Repayment terms are typically 10 or 20 years.

A 504 loan consists of a conventional first mortgage, typically for 50% of the project cost, from a third-party lender. The SBA-backed portion of the 504 loan will be a second mortgage, accounting for up to 40% of the financing. The borrower typically is expected to put the remaining 10% down.

SBA 7(a) loans for self-storage

Another financing option provided by the SBA is the 7(a) loan program. These loans provide financing assistance to small businesses and can be used for working capital. 7(a) loans have a maximum term of 25 years.

Loan sizes vary, with a standard loan offering up to $5 million, while a 7(a) small loan provides up to $350,000. Interest rates are pegged to the Federal Reserve prime rate. Currently they range between 9.25% and 11.75% depending on the amount borrowed and how quickly the loan is paid off.

Proceeds from a 7(a) loan can be used for short- and long-term working capital, refinancing business debt, purchasing assets, buying property, construction or completing renovations.

Conventional loans for self-storage

A common way to finance a self-storage business is through a traditional bank loan. This option allows you to borrow a large sum of money from a bank and pay it back over time, with interest. The benefit of a bank loan is that you can often secure a relatively low interest rate.

However, the downside is that banks can be strict about their lending criteria, and it can be difficult to qualify for a loan if you don’t have a strong credit history or collateral to offer. Additionally, the process of applying for a bank loan can be time-consuming and frustrating for many entrepreneurs.

Bridge loans for self-storage

Bridge loans provide a temporary solution for self-storage operators looking to obtain funding for projects quickly and are ideal for operators that are upgrading or expanding a facility. Bridge loans feature short repayment periods lasting from six months to four years. They carry higher interest rates than other loans.

Borrowers need to line up long-term permanent financing to pay off their bridge loan when the term expires.

Construction loans for self-storage

Construction loans for building new self-storage facilities can require a down payment of up to 25% of the projected cost. The borrower pays smaller monthly payments over the course of the loan term with a balloon payment due at the end.

Funding your self-storage business

Whether you are seeking funds for operating expenses, enhancing your facility, or expanding your business, choosing the right loan program is extremely important for the long-term health of your self-storage operation.

While the changing market may pose challenges for borrowers, remember that there may be flexible options available designed to suit your specific business needs. Consider the multiple lending scenarios available to you and weigh the pros and cons of each. Then you can move forward with confidence.

The post Choosing the Right Funding Option for Your Self-Storage Operation appeared first on Storage Unit Software.

But the drain on staff time and resources to increase your TPP enrollment rates might not seem worth it. The good news is there’s an automated solution to simplify the process – and it couldn’t be easier. Simply by opting in, you can improve your self-storage tenant protection and see a significant return on investment as you:

• Boost the number of tenants protected
• Streamline workflows
• Increase revenue

Push to Start

Tenant protection adds an extra level of comfort for your customers. But for many managers, the manual efforts to deliver an effective and convenient coverage program is a burden that falls to them.

Automated TPPs give tenants easy, self-serve access with fewer hoops to jump through. They can simply enroll into your TPP for convenient, immediate protection.

Best of all, your customers control their coverage. They can quickly review and choose which of your protection plans is best for them. And when their coverage is about to expire, they’ll receive a reminder to renew.

Current tenants benefit too. With automated tenant protection, the system audits your leases and manages the same auto-enrollment and tracking processes for existing storage tenants without coverage.

The result? More tenants’ goods are covered with no extra effort. And as a facility owner, you earn customers’ confidence, which can lead to higher customer satisfaction, longer leases, and better reviews.

Cruise Control

Maybe you’re an owner-operator of your self-storage facility, or you have a manager tasked with sales, operations, accounting, and more.

There’s no denying that for on-site enrollment, tenant protection requires effort to produce high enrollment rates. Managers need onboarding to your in-house program, training and feedback on offering the TPP, and time to track coverage and follow up with customers on their lapsed or expiring plans.

If you’re strapped for time, putting in the effort to get a return on investment may be off-putting. When you have staff turnover, you have to invest that effort all over again.

Fully automated tenant protection manages all these responsibilities. This means you can reallocate staff time and resources to focus on your goals for new leases, tenant retention, and overall smooth operations and excellent service.

Rev Up Revenue

More coverage and simplified workflows – it adds up to a better bottom line.

Automated tenant protection makes enrollment a seamless process. After choosing to embrace a fully automated TPP, facility owners may see an immediate enrollment increase from 25% to 65% (based on Auto-Protection results of other facilities).

Imagine what that kind of boost would mean to your revenue. You’re not only supporting your tenants’ peace of mind but your own with a service that improves your business value and stability.

It’s Automatic

Tenants appreciate a protection-first mindset and, as a business owner, you need to operate a profitable business to provide that service.

Automated options give you industry-leading enrollment rates (based on industry averages for facilities offering tenant coverage), meaning more protection for your customers and a boost to your bottom line.

With a fully automated solution, you don’t have to choose between an easy, reliable protection option and increased efficiency and profitability.

The post How to Maximize Self-Storage Profits with Automated Tenant Protection appeared first on Storage Unit Software.

Multiple priorities and responsibilities can make it even harder to retain a great manager.

Commit to keeping quality staff and helping them perform at their best. Look at your manager’s day and workflows, think about your business goals, and give them the tools needed to succeed.

1. Simplify the Sales Pitch

Occupancy is the key to success for any self-storage facility. Your manager’s priority is to get tenants and keep them. Depending on your location, prospective tenants may have several options, so managers need to effectively present your facility and its benefits.

As a facility owner, you’re focused on maximizing self-storage revenue and exploring opportunities to grow. Tenant protection is one area where you can add value to your tenants and boost your profitability.

But if you add that to a manager’s list of options to offer to prospects, tenant protection can easily fall to the bottom of the list. Operators with little sales experience may feel uncomfortable mentioning additional services in their initial conversation – even though tenant protection signals to prospects that you value their business and their stored goods.

Often you as the owner may lose time, too, since helping your staff build this skill requires you (or another team member) reviewing their sales conversations, providing feedback, and tracking their success.

Self-storage automation software can simplify the leasing process, especially with additional value-added services like tenant protection. Auto-enrollment makes it easy to place tenants into one of your store plans when they do not have other valid coverage. No conversation, coaching, or feedback is needed.

2. Cut Down on the Paperwork

Even the best self-storage technology solutions can’t make policy and document management disappear. But the more you ask your manager to collect, track, and update, the more time this administrative work takes away from their focus on your bottom line.

Take tenant protection, for example. Without an automated solution, managers need to track:

• Initial sign-up for new tenants
• Proof of coverage (for your plan and any alternative coverage)
• Upcoming lapses or current gaps in coverage

Automated tenant protection software will collect, manage, and track the enrollment status of all your customers, from providing an online tenant portal where customers can submit proof of coverage or choose their level of protection to sending them notifications for expiring plans.

Give time back to your manager to oversee daily operations and run a best-in-class self-storage facility.

3. Make Them Feel Indispensable

Most managers enjoy their roles because they play an integral part in their company’s success. Your manager brings knowledge and experience in customer service, facility management, recordkeeping, and more to help you run a profitable self-storage business.

Let your manager know that you recognize their diverse strengths and value their hard work without choosing to ignore additional revenue opportunities. By helping them focus where they provide the most value, your managers feel like they’re a core part of the team.

Less Burnout, More Efficiency

Automated self-storage solutions streamline your manager’s daily tasks and keep their workload focused. And for services like tenant protection, an automated approach can boost enrollment rates and revenue.

If you’re your own manager, this still applies to you. Simplify your workload and reap the rewards of a more efficient business.

The post Top 3 Strategies to Prevent Self-Storage Manager Burnout appeared first on Storage Unit Software.

The older style of gate access requires a computer to be onsite at the facility so it can run a copy of the software locally. With this comes many problems that can be resolved by cloud access control. Read on to discover seven things that make it the better option.

No more computer-based snafus

With normal gate access, there are often computer-related issues that impact the gate’s operation. When a computer is involved, there are naturally more failure points.

The computer’s antivirus program may block sync services between the controller and the management software, causing the gate to function improperly. Additionally, the computer automatically updating can result in malfunctions. Problems like these are no longer a concern if you utilize cloud access control.

Instantaneous updates

Some of the local-based access control systems have a sync time of anywhere from five to ten minutes. This means the system may only check the website every five minutes or so to see what changes have been made. With cloud access, updates are instantaneous.

If someone needs to be locked out, they now will lose access to the facility immediately. Additionally, if someone driving past the facility decides to rent storage online, they can access their unit right away.

Automatic updates

Cloud access control not only facilitates instantaneous changes but also allows for automatic updates. For example, you can set your gate up to automatically lockout a tenant if they’re a certain number of days past due.

Control of access points from anywhere

You are able to open and close any of your access points while online. If a tenant is having trouble entering a gate or door, you can open it remotely. If a potential tenant swings by the facility and wants to take a quick look around, you can let them in even if you’re not on the property. There will now be far fewer times in which you need to rush over to your facility in person.

Access to information online

Rather than going to the facility to take a look at the physical software, you can view all your gate access information online. Take a look at things like gate codes and activity logs with the touch of a button.

Varying gate access times and areas

You’re able to set different access times for individuals depending on their needs. If you have multiple gates or doors, you can also restrict individual access to some of these points.

Simplicity for tenants

Older systems assign gate codes based on the unit rather than the tenant. Now, cloud access control systems can assign one code to each tenant, meaning your customers don’t have to remember multiple codes if they rent multiple units.

Some cloud access systems give you the option to make your tenant’s gate code automatically be the last four digits of their phone number. This makes it easy for your tenants to remember their code, resulting in fewer phone calls asking you to look it up for the third time that month.

Cloud access control is a fantastic addition to your toolbox in the effort to make your facility run as smoothly as possible without you needing to be physically present. Not only will it improve your experience as the business owner or manager, however, but it will improve your tenants’ experience as well. To learn more about Easy Storage Solutions Cloud Access Control, you can request information here.

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