Frequently Asked Questions
Why do I need professional management?There are many reasons such as increased cash flow even after fees, minimizing exposure to liability issues and other legal problems as well as a very important one - the freeing up of an owner’s time to pursue other interests.
What is meant by the term “conversion rate”?The conversion rate is the ratio of rental contracts written as a percent of rental inquiries. For example, if during the month you receive 60 rental inquiries and write 45 contracts, you have a 75% conversion rate.
What do you do with this conversion rate number?We calculate the conversion rate for all sizes in all facilities every Monday morning. If a particular unit has a low conversion rate, the problem is either the pitch or the price or a combination of both. Generally the problem is the price so we discount that unit size to increase the conversion rate. Our conversion rate goal is 75%.
How do you know your managers are handling rental inquiries properly? The conversion rate generally tells us when a manager has lost her edge. We also use role-playing quite extensively as well as mystery shops.
What would you say are the most important factors in managing a self storage facility? There are many factors but I would say that most important ones are competent well trained on-site staff, really good customer service and consistently competitive rental rates adjusted for current unit inventory.
Is wine storage a big deal? We have experience with wine storage and I’d have to say the jury’s still out on this one. The proforma looks great but the trick is filling it up. Rather than case lot storage, bulk storage may be the way to go.
How about climate controlled units?For some items like fine wooden furniture they’re great but in northern California they generally aren’t necessary nor are they cost effective for the consumer.
What about security? Obviously an owner needs to do everything he or she can to protect the customers’ goods. There are a lot of fancy electronic systems on the market that are very expensive and not infallible. In my opinion surveillance (by camera and managers patrolling the storage area) during the day along with entry code access and motion detectors at night provide the most cost effective security.
What is your “territory”?Unless there are special circumstances, we like to have the facilities we manage no more than two hours from Marin County. That said, we manage – quite successfully – a facility in Boulder, CO.