Sometimes self-storage owners consider contracting with a management company if they would like to step away from the day-to-day operations. Some have other personal and business interests, and may not be in a position to extensively monitor their investments daily activities. Many owners live long distances away from their investments and, along with the travel time spent to visit their investment and the consistent monitoring of properties, too much time is taken away from other preferred activities.
A management company offers owners freedom to be as involved or uninvolved as they wish. A good management company will keep the owner informed of any major changes while keeping the nonessential items in check, allowing investors to pursue other endeavors.
By utilizing professional management services you can eliminate daily worries of facility operations, yet feel satisfied your property will continue reaching operational targets under the guidance of the management company.
Just a Piece of the Pie
Most entrepreneurs don’t start in the storage industry. They come from many different walks of life: banking, real estate, construction, healthcare or a combination of many career pursuits. Typically, they are diversified in several industries other than self-storage. It could be a self-storage facility was acquired or built as an additional income resource, an addition to an investment portfolio, and perhaps is not an owner’s priority.
Self-storage differs from managing apartment complexes, warehouses or parking garages, etc., because it requires daily reviews of manager activity, knowledge of the market surrounding the property and the constant need to keep up on changing laws in a specific locale. The storage industry is regulated by the laws of the state where the facility is based. Along with keeping state laws straight, a facility owner must include budgetary items, marketing plans and industry jargon unfamiliar to other industries. In other words, it’s not as easy as it looks from the onset.
A management company can keep all self-storage activity from spinning out of control. Most people with business smarts would never allow a cashier at a local supermarket to perform surgery on them, or ask their CPA for a haircut, yet many owners and potential owners will attempt to run or purchase a self-storage facility without any professional advice. For the easily identified and not-so obvious reasons, this could be futile. But a management company can come to the rescue and help property owners develop facilities into the investment vehicles they desire.
A Tune Up
Over time, a facility’s management style sometimes becomes stale. Operational strategies that worked previously may not produce the returns the owner expects or needs to continue to operate the self-storage investment. Perhaps a different perspective on facility operations could have a positive effect on the property’s income and freshen up things.