Self-Storage Newbie - 30 Days to Launch

Self-Storage Newbie - 30 Days to Launch

Investor · San Francisco, CA · Member since 2015 · 201 posts · 95 votes

Greetings BP Self-Storage gurus,

I'm a 5 year active multi-family investor and landlord but am closing on my first self-storage in about 30 days.  I picked it up for a song when looking for commercial as my bandwidth managing residential is getting stretch with my day job commitments.  

Here's the basckground: It's a $100K small, 60-unit facility that has been terribly managed.  Only 10 units are occupied and current on rent with just 1 move in the last 2 years.  Every other facility in town in 85%+ full.  It's run down - many of the doors are hard-to-impossible to open, it needs painting and marketing in non-existent.

I live in San Francisco and it's in Bonham, Texas so I'm hiring for a local part-time manager paid on a commission basis.  Maintenance is already schedule for the doors and painting so marketing and "features" are where I'm seeking wisdom.  Current prices are 20% below the competition.

 want to fill those 50 units and fill them fast at market rate.  Bonham is a small country town of around 10,000 people.  I'm thinking website launch, newspaper classifieds, Craigslist, Google AdWords geo-targeted to the city, a large storefront signage and building personal relationships visiting realtors, local businesses that might need storage and banks.

Beyond maintenance I could add features like security cameras, moving supplies retail, and graveling the area around the units - currently it's just grass.

Here's the advice I would love: when you take over a facility, what are the first things you do to promote it?  What works the best, especially if you are in rural and less tech-saavy market.  What features do you find most appealing to clients?  What should I plan for in the weeks leading up to taking the keys and what should I do after taking over?

Thank you!

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Certified Public Accountant · Chattanooga, TN · Member since 2008 · 279 posts · 151 votes
10y

id recommend you get cloud based software that includes a website so you can track your activity and allow tenants to rent online.  I use Easy Storage Solutions.

Then I'd recommend you work on seo and Google pay per click to drive prospects to your website. There needs to be a phone number with someone to answer the inquiries as well.

Good luck

Michael

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  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Look up George Fitz on here. He owns and focuses on Self Storage. There are a few others on here as well.

  • Certified Public Accountant · Chattanooga, TN · Member since 2008 · 279 posts · 151 votes
    10y

    id recommend you get cloud based software that includes a website so you can track your activity and allow tenants to rent online.  I use Easy Storage Solutions.

    Then I'd recommend you work on seo and Google pay per click to drive prospects to your website. There needs to be a phone number with someone to answer the inquiries as well.

    Good luck

    Michael

  • Engineer · Victorville, CA · Member since 2015 · 27 posts · 11 votes
    10y

    Get on Yelp too. Probably a good idea to do that after you have made the upgrades. There are auxiliary businesses that can be run through a storage location such as truck rentals and moving supplies. Don't do any "first month free" deals. That just attracts the worst customers and you'll have to deal with kicking them out. A better deal would be gift certificates to a popular local steakhouse with a lease. You could advertise that on the radio.

  • Cedar Rapids, IA · Member since 2014 · 33 posts · 21 votes
    10y

    Congrats @Ryder Meehan  I own a 60 unit facility in a small town and it's been good to me.  We don't have a website to push google adwords to so we use Sparefoot.  We tend to charge a premium price because of the fee that they charge for a successful move in.  Overall I like them and it has helped us fill a few empty spots.

    The only downside I've found to using Sparefoot is it seems to bring in a lot of last minute people who won't be there long.  One even wanted a daily rental rate!  We've largely taken care of that by explaining we need a minimum 2 or 3 month commitment.

    Good luck!  Would love to hear about your progress.

    James

  • Investor · San Francisco, CA · Member since 2015 · 201 posts · 95 votes
    10y

    Any other sources of referrals working well for you?  I want to come out marketing guns blazing the minute I take those keys!

  • Cedar Rapids, IA · Member since 2014 · 33 posts · 21 votes
    10y

    Off the top of my head I think it's $60ish for anything 10x10 or larger and $40ish for smaller sizes.  So not cheap but it's another tool to use to help drive customers to your facility.  They have a huge affiliate network through something like 60 different moving web sites.  We've had people book our units even though there were many places closer to where they lived.  The good thing about sparefoot is you can turn it on and off easily so if you only want to sell a couple through them you can do that and then turn availability off.  

    If you call during normal business hours they will have a sales rep walk you through everything.  Everyone was very helpful, they called after we got our first rental through them to ask if we had any problems or questions.  At the end of the month they send an email and ask you to verify which customers actually moved in and that is what you pay for.

  • Specialist · Victor, NY · Member since 2013 · 823 posts · 844 votes
    10y

    Great tips so far.  I too like Sparefoot and spend about $200 per month on Google Adwords Express to "ramp up" when we put a new building up.  I also use Craigslist, renewing ads every three days or so.  

    With a facility like the one you describe I would work to get on Sparefoot from day one.  They have a second payment option where they take a percentage of each month's rent for as long as the customer stays.  Its steep but you will be making more than if the spot were empty.  So the strategy should be to use them in ramp up and then remove units from their inventory as you get close to (75%---guess) full on that size unit.  Then you fill the rest by yourself at full street rates and gradually squeeze sparefoot out as thier customers move out and you refill without their help.

    There are other self storage aggregator sites worth looking at too.  www.usselfstorage.com www.selfstoragelocator.com are two that come to mind.

    I don't know your market at all but I am willing to guess that you will be pleasantly surprised by how far you will get just by answering the phone!!! 

    NO need for yellowpages.

    Hope some of that helps.  Good Luck!

  • Rental Property Investor · Malvern, PA · Member since 2015 · 82 posts · 28 votes
    10y

    Hey Ryder, congrats on the purchase! Sounds like it was a great deal. Focusing on commercial storage (realtors, contractors, etc) is a great idea, and will get you those long term bread and butter tenants. I would definitely add security cameras, gravel, and maybe a fence if I was in your shoes. One thing I would strongly encourage you to do is not skimp on a manager and on your website -- those two things will take you a long ways with maximizing your investment's potential. Make sure you also study how self storage works in contrast to traditional multifamily -- I've written a few blog posts on that topic, and will be writing more. Keep in touch!

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