Why should you do automatic payments in self-storage instead of cash

There are several reasons why you want to set your clients up on automatic payments. Most people are inherently complacent. Once their stuff is out of site, it is out of mind. They like having it tucked away nicely where they don’t have to deal with it. If you force them to think about it each month, they are more likely to realize that they are paying for things that aren’t worth as much as they are paying each month. They will come in and evaluate what they have and likely move out.

On the other hand, if you have people on automatic payments, they will move in and never come back. They won’t remember what they are storing, until the holidays. Most people think that they are only going to need a storage unit for a month or two. They end up staying for 27 years. This is why large companies offer move in specials where the first month is free. Once people have moved in, they are much less likely to move out again. They are going to leave their belongings nicely packed up and stored where they are.

When you are in the RV & Boat storage business, people are more likely to get up and move when the next, nicer place comes along. With self-storage, people don’t want to take the time or the energy to move their stuff every few months. Once it is tucked away, they are going to leave it that way. Because of this, you want to try to get people to store their personal belongings as well as their Boats or RV’s. This way they are less likely to move when the next storage place opens up.

Another reason that you want to have your clients on automatic payments is that it cuts down on late payments. We are not in the business to collect late fees. We are in the storage business. By having their cards on file, you automatically get your money each month. There may be some cards that don’t go through and then you still have to chase down the payment, but it will cut down dramatically on the number of late payments.

Finally, when you have clients brining in cash or checks, your manager has to keep better track of the payments. This takes more of your manager’s time. In addition, you are going to have people who forget or are late, or don’t have time to get it to you today. This also takes more of your manager’s time. You want your manager focused on making you more money.

If you have to offer a slight discount to get an automatic payment, it is worth it in the long run. You are going to raise your rates over time anyway. If you have the card on file, then you save yourself and your manager a lot of time and hassle. As always, happy investing.