Inside Self-Storage

APR 2019

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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THE OVERLOCK PROCESS IS CHANGING… Call Us today with questons or to order at 919.241.7600 Learn more and order a FREE Demo Lock at www.DaVinciLock.com THE PAST -The MANAGER Removes The Lock -Wastes the Manager's Time -Costs $5.00 per lock to buy -Has no recurring costs THE FUTURE -The CUSTOMER Removes The Lock -Saves the Manager's Time -Costs $5.00 per lock to buy -Has no recurring costs Visit us at ISS World Expo, Booth # 820 Know and Communicate the Rules To overcome customer objections, you need to be educated about your facility policies and rental agreement. This will help you be confident. If you're not familiar with your rules, you won't be able to effectively communicate them to new renters. First, know your state laws. These change often, so it's important to be current on what's happening in your region. You also need to understand your lease so you can explain it to customers if and when questions arise. You should also be able to clearly explain your site rules. These are in place to protect everyone, especially tenants. They should cover things that might not be in your contract, such as: • Leave hallways clear. • Never block another tenant's unit door. • Smoking is prohibited except in designated areas. • Never leave building doors propped open. Explain Fees Airlines charge bag fees, hotels charge resort fees and utility companies charge convenience fees for online payments. In storage, the admin fee is a one-time, non-refundable fee charged at the time of move-in. Ranging from $10 to $25, it's used to offset the cost of setting up a new customer account and typically replaces a security deposit. Once you explain the reason for the fee, your customer will understand it's simply the cost of doing business. Some facilities offer a free lock as compensation, which is a great way to guarantee your customer is using an approved lock. Now, let's talk about late fees. We all have tenants who want to argue about them. While some facility operators are inclined to waive them to keep the peace, doing so only enables customers to pay late. If you charge a late fee the first time a tenant is late, he'll know you mean business. Late fees are simply non-negotiable. Spell this out clearly to the tenant at the time of rental. Utilities, credit card merchants and lenders don't waive late fees, and you shouldn't either. This is the same for lien fees. It costs money for to follow default procedures. We have to send letters, inventory units, advertise, post photos online, and share our profit with online-auction companies or auctioneers. These fees should be passed on to the tenant. Explaining this upfront will, hopefully, lead to fewer objections later. Be Smart About Rent Increases A storage facility's expenses go up every year, including things like taxes, insurance, maintenance and payroll. Managers can make or break the success of rental increases, so it's important to understand the need for them and how to respond to pushback. Late fees are simply non-negotiable. Spell this out clearly to the tenant at the time of rental. 50 ISS I April 2019 www.insideselfstorage.com

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