Regularly reviewing your numbers is key to running a profitable self storage property. Check out our podcast to listen to how to review the numbers weekly and keep a finger on the pulse of the properties that we provide third-party self storage management services to.
Here are a few numbers we review each week. Each is compared to the prior week and prior year:
As we review our numbers, we are watching for growth trends, red flags for theft, gaps in training, and to create our plan of attack for the week.
Don't forget to review your occupancy rates:
Watching unit occupancy isn't enough. Pay attention to economic occupancy as well, which is the primary metric to look at the money. Economic occupancy is the amount current customers are charged vs. the gross potential of the property. If you give away every single unit, you are 100% full but making no money and 0% economic occupancy. Large management companies are notorious for dropping rates well below the market to increase unit occupancy.
Unit occupancy is a vanity number that doesn't pay your bills. If you are in the market for self storage management, be sure the company you select has a solid approach to revenue management that does not sacrifice economic occupancy for unit occupancy.
Listen to our podcast on the importance of auditing here: https://www.atomicstoragegroup.com/podcast/episode/3310321a/atomic-self-storage-show-10-the-importance-of-auditing-your-self-storage-facility
Reviewing numbers isn't enough. Be sure to create your plan and EXECUTE during the week to hit your self storage goals.
For those owners who want to be proactive and predict the numbers, rather than react to them, start tracking each demand event. Demand is a great tool to create proactive pricing and allow the smart self storage owner (or management company!) to capitalize on every opportunity at the property.
Using a solid demand tracking system coupled with solid competitor shopping allows us to make decisions that optimize the income of our self storage properties and increase the value for the owners and investors. At Atomic, one of the reasons people chose to have us provide self storage management services is our proactive approach to revenue management, which begins and ends with demand tracking.
Atomic Storage Group offers self storage training and consulting in addition to our full-service third-party self storage management services. To learn more about our services, email us at firstname.lastname@example.org.