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As a leading solutions provider in the self-storage industry, we regularly hear from self-storage owner operators who think they’re facility is doing great when rented at a 90-100% occupancy; however, we look at occupancy rates quite differently. When a self-storage facility’s rental rates are too high or too low, it can be bad for business and have major impacts on your revenue stream by not allowing you to adjust your tenant’s rental rates over time. An article published on Inside Self Storage says, “If you aren’t regularly assessing and increasing your self-storage tenants’ rental rates, you’re leaving money on the table. It’s time to take the emotion out of rate adjustments and increase your property’s value through smart revenue management”. And this is exactly why industry veteran, Troy Bix, suggests self-storage owners strive for an 80-85% occupancy rate, as this gives you the room to create more inventory, increase your property value and charge higher rental rates while staying on top of a growing industry.
In this blog, we’ll discuss optimal occupancy rates, as well as:
Being rented above an 85% occupancy rate is like backing yourself into a corner – you’re running out of inventory and it’s simply bad for business. There’s nothing worse than not having an available unit when a potential renter visits your website, calls the office, or stops by the facility with goods to store. This is the fastest way to leave money and relationships on the table.
When your occupancy rate rises above 85%, it’s time to consider revitalizing your self-storage facility to increase your facility’s property value and make room for additional profit. From robust security systems to adding relocatable storage units to your existing self-storage facility’s set-up, there are many ways to revitalize and aging self-storage facility, increase your self-storage facility’s property value and optimize ROI.
When rented above 85% occupancy, consider revitalizing your self-storage facility. Here are a couple of options:
Relocatable storage units are a fast value-add solution to any self-storage facility with idle land. Whether that’s an unused parking lot or property that sloping and unfit for traditional construction, relocatable storage units can be placed where most ground-up self-storage can’t. Best of all, these portable solutions can be constructed from the same durable components as traditional self-storage units, so you don’t have to sacrifice on quality or aesthetics when choosing a portable solution. MASS relocatable storage units can unlock a variety of benefits, including being considered as equipment which helps you bypass lengthy permitting and zoning processes!
Want to Learn More about MASS Relocatable Storage Units?
A robust security system is much more than a gate, keypad and camera installed around your self-storage facility. It’s an innovative step into technology that allows you to remotely manage and control access around your facility. With smart entry access and smart locks installed on every unit door, you can customize access for each individual tenant. And we’re not just talking about gate access into the facility - We’re talking about access to open (or not open) man doors, elevators and much more, up to individual unit doors, all controlled by a smart phone or dedicated Bluetooth key fob.
This automates processes like overlocking, releasing and even lock checks that once took so much time out of your day. With thermal motion detectors installed inside every unit door, you can pay better attention to detail and you’ll know immediately if someone is sleeping in or messing around with a unit. Not only does this tech savvy security solution allow you to take a seat of control for site management, but it brings an un-matched level of convenience and security to your tenants too. With smart features such as digital key sharing, find my unit, or one touch access, tenants can access and use your facility easier (and safer) than ever before.
When you’re rented below an 80% occupancy rate, you likely have units that are under and over performing at your self-storage facility. Take a look into your most successful and unsuccessful units, and consider remixing your self-storage unit mix to satisfy the needs in your community. If you have an abundance of vacant 10x10 units, consider putting something else in that space to optimize your unit mix. Whether your feasibility study was off, or the demographics in your area have changed over time, modifying your unit mix could be exactly what you need to serve your community, increase occupancy rates and ultimately make more money.
When rented below 80% occupancy, consider adjusting your self-storage unit mix. Here are a few options:
Climate controlled units are becoming more and more popular, as people want to store their valuables in optimal climates to avoid things like heat, moisture and mold.
Offering smaller sized units can help you target the millennial generation. After all, young adults tend to have less items to store and less disposable income.
Your unit doors say a lot about the security and ease-of-use of your self-storage facility. If they’re old or worn out, they could be the reason people aren’t wanting to rent at your facility. By replacing outdated and hard to operate doors with cost effective and sustainable solutions, you can increase your tenant experience while adding value to your self-storage facility allowing you to increase rental rates per unit.
