Do-It-Your-Self-Storage: Kiosks!

Kentucky Avenue opened in 2007 with the goal of attaining 50 percent occupancy after one year of operation and 80 percent during the second year. This rental activity would trigger a favorable financing package allowing the owner to start the development of the second phase of the project. By achieving the higher occupancy rate, Leslie’s operation acquired new financing for Kentucky Avenue’s expansion sooner.

"We can’t lock into a permanent lease until occupancy reaches 70 percent to 80 percent," he says. "So the faster the lease-up, the better the term of the loan you get for the next phase."

The additional rentals taken in by the kiosk allowed occupancy to exceed the 80 percent level faster, thus accelerating the timetable for expansion. Kentucky Avenue’s second phase will consist of 295 units with 41,000 square feet, bringing the project to 76,000 square feet total.

Leslie believes the added convenience of the kiosk better accommodated customers’ work schedules. "In that particular community, we have a lot of people working until 5 p.m. or 5:30 in the evening," he says. "They’ve been coming in after hours and renting a unit at 7 p.m. or 8 p.m. We’ve had some customers come in at midnight to rent units. We found the kiosk adds great value to our operation."

Kiosks Collect Late Fees

Leslie discovered another added bonus of the kiosk: the ability to always collect late-fee payments. When he reviewed his balance sheet, he made a startling discovery.

"We’re actually collecting more late fees than ever through the kiosk. It’s generating additional income," Leslie reports. "It allows customers to come in and pay their late fee without having to face my managers, and they have immediate access to the facility. If someone wants to get into their unit after hours, they’re going to have to pay the late fees to get in. They don’t have to contact the manager or the owner asking to get a break. The first time a customer is late we normally waive that late fee. When they come in after hours, there’s no one here to waive that, so the kiosk automatically charges the late fees."

The Kentucky Avenue facility collected more than $2,100 in late fees during the first two months of the year, which was more than the amount collected all of last year. The trend duplicates a similar experience at Leslie’s other Indiana facility, Avon Self Storage Locker. During the first two months of 2008, Avon collected approximately $4,000 in late fees, which was almost $1,500 more than the same period in 2007.