ISS BLOG - Feeling Pain From Today’s Economy? Flex Your Strength By Doubling Down on Your Self-Storage Business

After months, possibly even years, you’ve finally opened your new self-storage facility. Congratulations! Now it’s time to sit back and watch the rentals roll in, right? Well, not exactly. Everyone who’s ever opened a new business—self-storage or otherwise—understands that getting to opening day is really just the beginning. To keep afloat, especially during those few first critical months, it takes patience, perseverance and maybe a bit of luck. This is true of self-storage, even though the industry enjoys accolades as being a solid investment.

Yes, it’s true, self-storage can hold its own in good times and bad. But long-term success isn’t a guarantee. Furthermore, it’s a bit harder in today’s economic climate to maintain high occupancy, which is the golden goose everyone is chasing. The industry enjoyed huge numbers and high rental rates during the pandemic, and many became accustomed to this favorable situation. Things are different in 2024. While demand remains good in most markets, investors, developers and owners must be more diligent these days. This means doing your homework before selecting a site for a new build and properly assessing a potential acquisition.

In a new thread on Self-Storage Talk, the industry’s most active online community, a member shares their distress about opening a new facility in today’s environment. The property is in a growing suburb. Its marketing is on point. The facility incorporates the latest and greatest industry technology including smart locks and kiosk. Yet the first 14 days of operation only netted seven renters. Is it time to panic?

Not according to other SST members. While they empathize with the new operator, they also note that seven isn’t so bad. Rather, they suggest to just stay the course, maybe offer some good deals, answer the phone promptly and market, market, market. Senior member lady5563 even says, “Struggling would be no rentals since you opened!”

Look, just about every industry is hurting right now. Retail stores are shuttering. Malls are pretty much a thing of the past. Restaurants are closing. It’s happening. According to S&P Global Market Intelligence, 346 companies filed for bankruptcy during the first half of this year. It’s the highest number since 2010. A survey by messaging service Slack states about 40% of small-business owners think 2024 will be a “make or break” year for their business.

These numbers shouldn’t be surprising in light of what’s happening in today’s economic climate. We’re all paying more for everything—gas, food, prescriptions, clothes, entertainment. The housing market has taken a serious hit. Rent for multi-family housing is astronomical. When people aren’t moving, the self-storage industry will be affected.

While all this can be disconcerting, don’t lose hope. Rather, it’s time to double down on your business. The economy will change, hopefully for the better. And, as I said, self-storage has staying power. In the meantime, consider these pointers.

Marketing. While it might seem silly to spend money on marketing right now, it can be effective to attract new renters. And it doesn’t have to be expensive. There can be a higher price tag for advertising, such as pay-per-click, but there are also low-cost options. Try sponsoring a local sports team. Offer a unit for free or at a discounted rate to groups such as churches, nonprofit organizations, law enforcement and schools. In exchange, ask them to promote your brand. Many even have email newsletters in which they can mention your company or add your logo with a “thank-you” note. More than likely, they’ll be more than happy to do this.

Grassroots marketing is making a comeback, even as we embrace more technology! Community events are a golden opportunity to meet potential renters. Host a chamber of commerce get-together, car wash, food drive or animal adoption. The holidays are just around the corner and there are a plenty of nonprofits that’ll be seeking support.

Digital marketing can often come with a price tag, but social media is free. Post regularly on your Facebook, LinkedIn and Twitter pages, and even Pinterest. Here are some ideas on what to say to gain follower and engage them. Another freebie tactic is to launch an email marketing campaign.

The customer experience. No doubt, you’ve witnessed the decline of businesses that offer a truly great customer experience. I certainly have! Don’t fall into this category. Providing a superior customer experience is actually very simple. Be on time. Look and act in a professional manner. Keep your facility safe and clean. Call people back when you say will. Resolve problems. Think Disney-level, not McDonald’s.

This means in person and on the phone but also online! It’s imperative to manage your business reputation to monitor and improve the public perception of your self-storage company. People talk. Make sure when it’s about your facility, it’s always positive.

It isn’t easy to be a business owner, no matter what’s happening in the world. There are many stressors, a lot of irons in the fire and time is rarely your friend. Exercise patience and be kind to yourself and others. When you embrace a positive outlook, you’ll achieve your goals.