ISS BLOG – Go All In! A Case for Why Self-Storage Operators Should Fully Embrace a Remote-Management Model

Remote management is on nearly every self-storage operator’s mind right now, and for good reason: It can dramatically improve business efficiency and profitability as well as the customer experience. Many of you have already implemented some form of remote management by offering online rentals, employing a call center or adding a kiosk to your site. Some have even integrated live video-conferencing technology, allowing virtual customer-service representatives to oversee multiple locations at once.

These are all great steps, but if you want to truly realize the benefits of this model, the best approach is to go all in. Go fully remote. Here’s why. 

It Enhances Efficiency and Profit

The implementation of remote management for a self-storage operation results in greater net operating income (NOI). How? First, it removes the need to have staff on site at all times, thereby reducing payroll expenses. It doesn’t eliminate the need property managers entirely. Rather, it allows your team to be more focused. No longer do they have be good at all facility tasks including sales, collections, maintenance, repairs and marketing.

Remote management also allows your self-storage customers to rent units and access their belongings during off-peak hours. Why have an employee sitting in the office when tenant needs are sporadic at best? This doesn’t mean you offer zero customer service; it means you deploy resources only where and when they’re needed, which in turn creates a more consistent customer experience.

Self-storage facilities that are on a fully remote management model are maximally efficient. They streamline operation through automation, monitoring vacancies and late fees and automatically notifying tenants of improper locks, overdue payments and more. Right now, many owners want to improve their infrastructure rather than acquire new sites, a result of high interest rates and falling rents. Remote management allows them to boost profit and improve occupancy, all without expanding their physical footprint.

You can grow your self-storage business without buying or building now! When the time for physical growth comes, self-service systems can easily scale and adapt to changing tenant preferences and technological advancements. But for now, any savings can be reinvested into your facility in the form of better lighting, advanced security and other amenities that make it more attractive to consumers, boosting competitiveness in a time of declining occupancy.

Remote management reveals compelling fundamentals while delivering the experience customers increasingly demand. Let’s see how.

It Improves the Customer Experience

Remote management gives consumers the independence they desire. A survey by HRC Retail Advisory found that 95% of retail shoppers prefer to be left alone unless they need help. The same goes for self-storage renters. Most don’t want to be walked around the property by a manager or told what unit to rent.

The history of online shopping provides helpful context. When e-commerce was first introduced in the 1990s, it was met with skepticism. One news story derisively called it an example of the “infohypeway.” Another said the internet was “missing a most essential ingredient of capitalism: salespeople.”

This suspicion was justified to some extent. In the early days, websites were difficult to navigate. Often, a web page would direct customers to call an 800 number and speak with a representative to place an order. Retail giants thought it would be helpful for remote salespeople to walk customers through the process and suggest what to buy.

But this wasn’t what shoppers wanted. They wanted websites to be simple and safe to use without assistance. Retailers eventually created the online environment we recognize today, which allows buyers to independently shop 24/7, with customer service available if needed.

The same lesson applies to the self-storage industry. Customers want a simple, streamlined and consistent rental process that grants them self-sufficiency. They want help when something goes wrong, but not before. This is why some operators have opted to move customer service to a centralized call center, where just a few employees can support multiple properties at all hours of the day, sometimes via two-way video. Properties that function on a fully remote management model have embraced—and are profiting from—this insight to customer preferences.

It’s a Win-Win

Remote management is better for self-storage operators and their customers. Operators get higher NOI and more flexibility. Tenants get the autonomous, simplified experience they want. When deciding how to plan for the future, remember the history of e-commerce. New technologies will usher in an era of business success for those who adapt and tailor their offerings to the wants and needs of today’s consumers.

Jackson Stevens is CEO of SpareBox Technologies, which is bringing technology innovation to self-storage operators nationwide. He previously worked as director of customer experience and innovation at SpareBox Storage, where he helped scale the organization from zero to 108 properties in 18 months. To reach him, email [email protected].