The Fifth Rule of Thumb – Managing and Buying an Existing Facility

Most of the time you will buy an existing facility. There will be times when you build a new self-storage facility. When you take over a new facility, you want to make sure that you prevent a max exodus by handling the change correctly.

Many of your tenants will be nervous about probable changes. They have no idea what you are going to do and so they will imagine the worst, immediate rate increases. On top of that, you are going to limit their access, inspect their units, and any other ridiculous thing you can think of. You want to stop the fear before it starts.

Your first priority when taking over is to make sure that your tenants know that you are going to keep things the same or make it better. You want them to be reassured that they want to stay. You need a really fantastic welcome package. Start by introducing yourself. Be as friendly as possible. Reassure them that nothing is going to change for the worse. If you are changing something phrase it in a way that they will feel that it is helping the facility become safer or more structured.

When you make changes, make sure that you word them in a way that feels positive so they will understand how it will benefit them. For example, if you are changing the hours for the better, show them that you are allowing them more access to their belongings. If you happen to also be increasing the late fees, put that in after to soften the blow. The people who are always on time won’t care and the people who are late might start trying to be on time.

Give your welcome package to new tenants as well. Your welcome package can help impress new tenants and help with word of mouth referrals. Your package should have a list of rules. It should review the hours that the self-storage facility is open and how to access the facility. Your package should go over your referral program and how they can take advantage of that program. It should also review what they can and cannot store in a unit, it can give tips on how to store for maximum usage. You can also review payments, late fees, and lockouts. You also want to review what happens if a payment is returned. This should also be in your lease.

Your welcome package can review security. Show them how safe their belongings are so that they feel more comfortable storing with you. When you have a large facility or a complex facility, include a map that will help them find where their unit is. Your welcome package should be designed for someone who has never used self-storage before.

By setting a positive tone with your new tenants, you are less likely to have people move out. You will be able to establish your new rules and get your new lease signed. This is a great way to meet all of your tenants and let them know that you are there to make things better. As always, happy investing.