A self-storage facility with full occupancy may seem like the perfect situation, but it’s no time to become complacent. There are ways to make even more of the situation. It’s a smart business move to continue being proactive when there are no vacancies. Bottom line is that turning away customers who may be desperate for storage space is not a good thing.

Price Hike

The principle of supply and demand applies to self-storage facilities, just like so many other services and products. According to storage experts, your prices are too low if you are at 94% occupancy or higher. Beyond 88%, the higher the occupancy rate, the greater the amount of profit you are missing out on. Raise rental rates, using strategies that do not result in a mass exodus. For instance, consistently provide good customer service, bring attention to improvements on the property, and make it a practice to raise rental costs routinely.

 

Expand or Build

Demand for storage indicates that your area is underserved. Building additional units or expanding the units you have probably makes sense, to stay ahead of the competition. Do a study on local demand plus a feasibility study on all costs associated with building additional storage units. An alternative to building new units is moving in mobile freight containers.

 

Expanding could be your best option, depending on zoning guidelines and whether or not the space is conducive to expansion. Can units be divided or combined? Are ceilings high enough to add overhead storage to existing units? Can units be converted to climate control?

 

Edit Promotions

With full or near-full capacity available, you can back off on price-cutting promotions. Eliminate specials that cut deeply into your profits, such as a half a year of half-off rental rates. Since rental units are seemingly in short supply in the area, it shouldn’t be too difficult to land new customers without a deep discount to reel them in.

 

Revenue Management

When self-storage facilities are in high demand, you may benefit from a different approach to managing your revenue. Determine whether there are certain unit sizes that are most popular, with the highest occupancy rates. Raise the rental rate on those. If you have customers who moved in at a highly discounted rate, consider significantly raising rental prices, to encourage some departures and increase the number of units available.

 

Sell!

A self-storage facility with full capacity is a highly attractive investment to people looking for a money-making venture. There may not be a better time to sell your property for a good profit. Even if you weren’t planning to sell, you may want to consider whether it’s a feasible investment strategy.

 

Contact Brokerage Services

It’s always a good idea to contact the Weaver Realty Group, if you are buying or selling a self-storage facility. Weaver is an Affiliate with the Argus Self Storage Network, which provides numerous nationwide benefits. You can count on receiving expert brokerage services with a personal touch. Contact Josh Koerner of Weaver Realty Group at 904-591-0140 today.