10 Crucial Tips When Running a Self Storage Business

From managing our first facility to overseeing more than $350M in assets, our journey in the self-storage industry has been one of trial and error, continuous learning, and collaboration with industry professionals. Below, we’ll explore the key elements that have driven our success and can help you achieve yours.

In this article, you’ll learn why it’s better to focus on improving what already works before chasing new ideas, how staying consistent, tracking important numbers, and building strong connections can help you succeed. Whether you’re new to the business or managing multiple facilities, these tips will guide you through challenges and help you grow.

1. Balance Occupancy and Revenue

Occupancy and revenue are critical to success in self-storage, but they are not absolutes. Many operators mistakenly focus solely on occupancy, believing it to be the ultimate goal. However, lowering rates to achieve high occupancy can often reduce overall profitability.

For example, if your facility is 95% occupied, it’s an impressive milestone. But as occupancy rises, adjusting rates to optimize revenue is essential. You might be 95% occupied, but your tenants are only paying $10/month. Wouldn’t it be better to be 60% occupied with tenants paying $100/month? Balance these metrics with data-driven strategies to maximize both.

Keep in mind that high occupancy is not equal to revenue.

2. Focus on Revenue First

While cutting expenses is important, revenue is the lever that drives real growth. Sacrificing revenue to increase occupancy or cut expenses often leads to diminishing returns. Instead, focus on effective revenue management by:

• Analyzing data to adjust pricing.
• Avoiding random decisions around expenses or pricing.
• Creating repeatable strategies for success.

With data-driven insights, you’ll be able to communicate these decisions clearly to employees, partners, and vendors, ensuring alignment and effectiveness.

3. Keep Momentum in Any Market

When business is booming, it’s tempting to relax—but don’t. Success is fleeting, and the key is to maximize every opportunity. Whether the market is thriving or challenging, maintain focus, urgency, and drive. Consistent effort ensures resilience and long-term growth.

4. Think in Reverse: Identify Failure to Ensure Success

Sometimes, the best way to succeed is by identifying potential failure points. Ask yourself: “What steps would I take to destroy this business?” Our brains are naturally wired to find negatives, so this exercise can yield actionable insights. Once you have a list of potential pitfalls, invert them to create a roadmap for success.

Basically, identify the good by identifying the bad.

5. Improve What Works Before Trying Something New

Chasing new strategies or technologies can be exciting, but it’s often risky and time-consuming. Instead, focus on refining what already works.

Ask yourself:

• Are there existing processes or systems that could be optimized to yield better results
• Can you enhance customer satisfaction or operational efficiency using current tools?

For example, if your team’s sales process is effective, look at training opportunities to sharpen their skills rather than introducing a new tool.

By maximizing proven strategies, you save time, reduce risk, and position your business for sustainable growth. Once these refinements are in place, exploring new initiatives becomes far more strategic and less resource-intensive.

6. Optimize Processes Before Upgrading Products

Enhancements like new gates or security systems can boost facility value and drive occupancy, but these improvements often require significant investment. If budgets are tight, prioritize process improvements. Streamline operations to make them faster, more convenient, and efficient. Strong processes lay the foundation for future product upgrades and revenue growth.

7. Track Key Metrics

You can’t manage what you don’t measure. Effective management hinges on tracking the right performance metrics. Without measurement, priorities can drift, and tasks may go undone. Consistent tracking ensures:

• Clarity on what’s important.
• Alignment across employees and teams.
• Accountability and performance optimization.

Remember: what isn’t tracked often isn’t accomplished.

8. Plan with the PACE Framework

The PACE framework—Primary, Alternate, Contingency, Emergency—is a structured approach to planning. It ensures you’re prepared for any scenario:

• Primary: Your main plan of action.
• Alternate: A backup plan if the primary doesn’t work.
• Contingency: Steps to mitigate issues as they arise.
• Emergency: Actions to address critical failures.

Note: Having good insurance is incredibly important! Insurance should cover the costs when something goes wrong - you don’t want to cut corners here.

Lets say your storage facility is in an area prone to hurricanes, it’s important to have a solid plan. Start by regularly inspecting and maintaining the facility to ensure it’s ready for severe weather. For a backup plan, consider temporarily closing the facility to protect staff and customers during a storm. If the facility is damaged, your contingency plan should include having a list of pre-approved contractors for immediate repairs. Finally, in the event of catastrophic damage, focus on safety by accounting for staff and customers and keeping them updated about their belongings and the facility’s recovery timeline.

Having a structured plan reduces risk and ensures smoother operations.

9. Details Matter

The key to retail is in the detail. In the competitive self-storage industry, small details can differentiate your facility. From the customer experience to the facility’s appearance, every detail impacts perceived value and boots revenue. Invest time in refining these aspects to stand out from competitors.

10. Build a Strong Network

Success isn’t a solo journey. Surround yourself with supportive investors, partners, and mentors. Join industry groups like Self Storage Income or attend events like the Self Storage Income Live Event to connect with professionals who can share insights and opportunities. A strong network is invaluable for growth and success.

By focusing on these principles, you can navigate the challenges of the self-storage industry and build a thriving business. Success comes from strategic thinking, continuous improvement, and learning from every experience. Remember, every step you take to refine your operations today sets the foundation for a more successful tomorrow.