Short answer: Visible, modest improvements signal to customers that a facility is safe and well run, which supports rent increases. Mark plans them during due diligence so work can start right after closing.
What Mark did in one turnaround #
During due diligence on a large facility he later bought, Mark’s team designed a capital improvement plan: fixing metal roofs, painting buildings, painting or replacing doors, blacktopping and generally making the property more appealing.
- Landscaping was upgraded, nothing elaborate, to soften the property and make it more welcoming, especially to women.
- Security got the most visible change: an upgraded camera system and screens behind the manager’s desk in a remodeled office showing every camera view, so anyone walking in could see their belongings would be watched over.
- Retail displays went into the remodeled office at the same time.
The total was modest relative to the size of the facility. Rent increases began within the first few months after the improvements were finished.
Mark’s takeaway from that project: there was nothing extraordinary in the steps. It took a plan, patience and consistent execution.
Related answers #
- Why should self-storage owners auction delinquent units promptly?
- What add-on revenue can a self-storage facility offer?
- Why should self-storage operators sell benefits instead of competing on price?
Source: Mark’s post Turnaround Playbook: 4 Steps I Use to Revive a Storage Facility
