Parting with a self storage management company is one of the most important decisions you can make for your investment. If you are like most self storage investors, you got into the self storage industry to create passive wealth, not deal with the day-to-day management of a business.
Self storage is unique in the commercial real estate industry as it is both an investment AND an operating business. The business demands time and attention to give a strong return on investment.
Whether you want to free your time to chase more deals or relax on a beach, we suggest hiring a self storage management company (like us!)
If you are like most of our customers, you have some questions before you are ready to give a management company the keys to the kingdom. We get it. Here are some things to think through before you decide on hiring a self storage management company.
Who should you partner with?
There are basically three options in regards to self-storage management companies: REIT, Private Storage Management Company, or Boutique Self Storage Management Company. To hire a REIT, your store has to meet specific criteria. It will be integrated into a network of hundreds of facilities very quickly. The operating systems, marketing campaigns, sales programs, and facility reporting come pre-installed. Your store will be re-branded (at your expense) to the REIT name and identity. If you decide to cancel management at any time, you need to re-brand back to your original name.
A REIT management company may choose to purchase your property when you decide to sell. A private management company is privately owned and may have 5 – 200 properties. Private management companies may or may not make you rebrand your property. There is less consistency among private management companies, so be sure to do your homework to make sure they are a good fit. A boutique management company (like Atomic), is a true partner in your company. Boutique companies believe it is their obligation to run your storage business to the best of their ability and take care of your asset.
Boutique companies give their customers care and attention and do not just see them as a number on a spreadsheet. They focus on the small things that matter to yield the largest benefits for their customer. They focus on the bottom line just as much as the top. At the end of the day, it all comes down to who you feel comfortable with? What are your goals for your business?
February 29, 2024