If you find that managing the day-to-day operations of your self storage is proving to be more difficult than normal, then it may be time to get outside help. A third party management service can help to take some of the hassle out of running a self storage facility. The decision to hire a third party management company is not one that is made lightly. However, there are some common misconceptions that surround these management services. Facility owners often question whether or not they will get a good deal and if the service provided will be of a high quality.
Let’s first examine the cost since affordability plays a major role in making these kinds of decisions. Third party management companies all have different fee schedules. Some charge a flat monthly fee while others will take a percentage of the facility’s gross income. Since there are many options to explore, we suggest taking the time to do assess your needs and budget before making a choice. If your facility needs a lot of work in terms of organization, marketing and renovation, then expect to pay a little more than average.
The price should also be used when determining how to evaluate on whether the management company. If you are seeing a steady rise in profit then this indicates that things are being handled efficiently. However, if you are constantly spending money on the service but at the end of the month, things are balancing out, then it might be time to reevaluate things and find another alternative.
Another issue with third party management services in self storage is the misconception that the companies won’t work very hard when managing the facility. This is simply not true. Since many management companies also own self storage facilities as well, there is a lot of experience involved in the process. The people who operate these management companies work as hard on the managed facilities as they do on the ones they own.
When making this decision about hiring the a self storage management company, facility owners also fear that they might lose their brand, employees and control of the company on a whole. While this trepidation is normal, it is unnecessary. The terms and conditions of the management contract will be well outlined so you will have time to peruse it before making a decision.
Management companies such as Universal Management Group and Professional Self Storage Management, LLC work hard to ensure that the investments self storage owners put into their facilities are well protected. You will be treated as a partner by the management service and still have decision making power. Remember, self storage management services seek to work with and empower you, not completely take over your business.
There is a wide variety of third party management services so don’t think they are all alike. Some companies operate all facilities alike and other take a more hands-on approach. Once you decide on a company, work closely with it in order to ensure that you get the most sensible return on your investment.