Need Help Tackling Certain Tasks? Why and How to Leverage Outsourcing for Your Self-Storage Business

When Tim Davis, owner of American Storage in Helena, Montana, decided he was ready to transition from a career in construction to self-storage, he had a clear vision for how he wanted to structure his new venture. He recognized that a successful operation has many moving parts, and a facility operator must juggle them all. However, he wanted to do as little of that himself as possible.

“My whole goal 17 years ago was to have a business where I didn’t need any employees,” Davis says. “The target from the beginning was to have a business I could operate remotely by outsourcing as much as possible. I don’t want to be on a lawnmower or snowplow. I want to rent storage units and take payments.”

Davis does more than just those two tasks, but he’s built his organization so that he doesn’t have to do much more. He also focuses his time on updating the company website, managing local marketing and, most importantly, answering every phone call. Everything else is outsourced, especially any physical maintenance or repairs and his digital marketing.

Thanks to outsourcing, Davis has seen his vision become a reality. The business that began with one self-storage facility and 165 units has since expanded to three locations with 1,060 units, all while remaining a one-man operation.

“I’m a firm believer in automation and have been since the start,” Davis says. “When I only had one facility, I was never on site. Now, I hire the same people to take care of all three.”

That’s the elegance of outsourcing. While the concept is the same for self-storage operators of all sizes, there’s endless flexibility in how you apply it to meet the specific needs of your business.

Why Consider It

One of the biggest challenges for all self-storage operators, regardless of company size, is deciding how to allocate limited time and resources, especially when you’re being pulled in multiple directions. Juggling everything required to run a successful facility can feel like walking on a treadmill. Yes, you’ll continually make progress, but there’s no actual end. Real estate investment trusts and other large players often have dedicated departments or teams to oversee specific areas, but smaller operators may not have enough staff or the skills to manage them successfully.

Outsourcing can be the solution by freeing you and your team to focus on the most important tasks that allow your business to flow efficiently and generate more revenue. By hiring an outside expert to cover an aspect of your operation that you are ill-equipped or disinclined to manage, you oil the wheels to turn more smoothly.

“Outsourcing is anything that you can’t handle in-house between ownership or employees along with whatever tasks your employees can’t complete because of time, money or skillset,” says Alex Erbs, vice president of business development at The Storage Mall Management Group, which operates 60 locations in the Midwest and Northeast. “This may be a specific task, something that’s performed daily for the operations of the facility, or anything that’s not specifically contracted to another group.”

While certain functions are essential, wearing too many hats can limit your ability to develop your self-storage business strategically. Outsourcing can address vulnerabilities and fill critical gaps. Bringing in an outside vendor allows you to tap into their expertise and resources. They can often complete the job more efficiently, plus they’ll be well-versed in legal and compliance issues.

Just be aware that there can be pitfalls. While your hired partner might be great at what they do, they likely won’t care as much about your self-storage facility as you do. Pricing should always be a concern, as should the level of service provided.

“I feel, generally, if you choose the right vendor, the pros will far outweigh the cons,” says Adam Gray, sales center manager for Guardian Storage, which operates 37 locations. “You’re dealing with professionals who do these things every day and are less likely to make a mistake.”

Opportunities Abound

The list of jobs that you can outsource on behalf of your self-storage operation is long and diverse. Whether it’s for the interior or exterior, seasonal or daily, operational or physical, your choice for what you hire out is extensive. Some of the most common choices include:

Depending on the needs and structure of your company, you might also seek assistance with:

“We outsource gardening and unit cleaning,” says Kris Fetter, senior manager at A Storage Place, which operates 38 locations in Arizona, California and Colorado. “Many of our facilities are so large, they can’t have managers pulling weeds, cleaning units, spraying for bugs and not be in the office. We would be outdoors for hours, and we can’t do that and answer phones.”

When to Leverage It

So, when does outsourcing make the most sense for your self-storage business? Once you’ve recognized the need for help, there are many things to ask yourself:

Small self-storage operators struggle with not having the bandwidth to handle all the necessary tasks and lacking the budget to outsource as many as they’d like. There either aren’t enough hours in the day or money in the bank.

“If you’re not sure if you can afford to outsource or are hesitant to dive in, just get a taste and find out,” Erbs says. “Maybe just hire someone part-time or have a short-term agreement with a vendor. You can always unwind a third-party relationship and go back to how things were done beforehand.”

Sometimes the decision comes down to the level of involvement the self-storage owner wants to have or their business goals. Many want to focus on acquisitions and growth, so they hire a third-party management company to oversee daily operation. Others have full-time jobs outside the industry and invest in storage on the side, which means they don’t have time to look after the facility. In some cases, a property is so small, the owner is OK with getting their hands dirty.

Outsourcing might also make sense to avoid legal pitfalls such tax laws, human resources and auctions. This is especially true if you own facilities in multiple states where regulations may vary. Ultimately, hiring an expert in a field may be the better choice vs. saving a couple of dollars by doing it yourself.

“Make sure if you do something on your own that you have the knowledge to do it correctly,” Gray says. “There are times when outsourcing is needed, especially if you're growing fast. Otherwise, ask if this is something you can do yourself or does a vendor make a good case that they can do it better and it makes sense budget- and time-wise.”

Psychological Barriers

Some self-storage owners are simply reluctant to give up some control of their business. This can be true for several reasons:

Overcoming these psychological barriers requires a shift in mindset. Building trust in others, setting clear expectations and focusing on the long-term benefits can help you gradually relinquish control and empower your entity to grow.

When making the final decision, the primary focus should be on your self-storage customers. Do what you must so you can follow through on leads. Ask yourself if a task will take you away from the phone or desk. Is your company structured so you can work on it instead of in it?

Vetting Vendors

It’s one thing to decide to outsource a job, it’s another to find the right vendor to do it. You likely performed due diligence before you purchased your self-storage facility. You should do the same when hiring an outside expert.

“When you are vetting a vendor, there are three questions to keep in mind,” says Jeanne Dotson, marketing manager for The Storage Group, a digital marketing and software firm. “Do they have a proven track record of success? Do they have a deep understanding of the self-storage industry? Do they have the tools and services you need at your storage facility?”

Start by reading the candidate’s Google reviews, then consult the Better Business Bureau or your local chamber of commerce. There’s also good old-fashioned word-of-mouth.

“If you have a question, talk to other local owners, especially if you’re a new owner,” Erbs says. “There are usually one or two key vendors who work with a lot of facilities in the area. Some owners may not answer you, but most will.”

Once you select a possible vendor, there are important questions to ask. Approach it as if you’re hiring a new self-storage staff member. Clearly communicate the definition of when a job is complete as well as fees and contract terms. Ask how they follow up to ensure a job was done correctly and the process they follow if it wasn’t. What serves as proof of results? Perhaps inspect a job in person to see how things look. If the provider can’t answer your questions, it’s a red flag.

Finally, if you’re outsourcing a service to a company for which they’ll need access to your sensitive company or tenant information, make sure they don’t work with your competitors. Ultimately, trust your gut. If all is satisfactory and you decide to hire them, get everything in writing.

“If you plan on being in business for many years, you’re going to want to have vendors you can rely on,” Gray says.

A Successful Partnership

A successful relationship between a self-storage operator and their outsourced vendor comes down to two things: accountability and communication. Having providers who perform their jobs the way you expect—and respond appropriately if they don’t—is vital. Put checks and balances in place. For example, your pest-control provider or landscaper will typically have a personalized gate code that can be tracked. Make sure your digital marketer provides analytics to show how their campaigns are impacting the bottom line.

Follow-up and transparency are also key. Establish a system for effective communication from the very beginning. This can be as simple as text messaging, emailing photos of a completed job or making monthly calls.

Finally, make sure there’s a clear understanding of the tasks at hand and a mutual understanding of expectations. Don’t be afraid to ask questions about job status and quality.

“If the vendor knows you’re paying attention, then they’ll pay attention,” Gray says. “If they never hear from you, they assume everything is running smoothly, even if it isn’t.”

Final Advice

Continue to learn what you can about outsourcing within the self-storage industry, so you know the questions to ask and that you’re receiving fair pricing. Learn enough about the service you’re hiring to make sure the job is done correctly and you aren’t being fleeced.

“My message to smaller operators would be don’t be afraid to let other people do all the work,” Davis says. “Focus on the most important parts of your facility, which is getting new tenants and collecting revenue.”

If you’re still on the fence, it’s important to recognize the value of seeking help and delegating. Even the most capable leaders need assistance to manage their responsibilities.

In essence, working on your self-storage business means being proactive rather than reactive. It’s about prioritizing tasks that’ll have a significant impact on the growth and success of your operation in the long run, rather than just keeping things running in the short term. It involves leveraging resources effectively to maximize efficiency and productivity.