Taking over a self storage business

[Mike A.]

We're moving into Self Storage.  We just took over a around 300 unit self storage unit outside of New Haven, CT.  Keeping the same team, but installing a general manager to oversee the operation.  Brings in around 30k a month, but the one problem I have is that about half of that is in cash. I do not like handling cash, and the banks do not like cash either. However, I am concerned that if I push the clients who are paying in cash to credit, they will leave. There are two other self storage businesses within two miles of ours; and one of them is already modernized. 

Any tips on the best way to manage this business? I am also looking for ideas and suggestions on the best ways to modernize it as well. It was an old 1900's warehouse that was converted back in the 90s into a self storage building.

[Michael Wagner]

Move to credit gradually. We run our properties 100% cashless. I don't think you will get appreciable push back but to be safe, just do it slowly. Start with the 20% of the clients that have the highest discounts relative to current street rates and raise their rates by X percent but offer to only raise it by .5x percent if they go to autopay...then repeat until you moved everybody over. Doing so will allow you to absorb Any "move outs" and you'll replace them with people at higher rates anyways!