We are all familiar with the standard add-ons for self-storage projects, such as tenant insurance, retail items, and truck rental.
Let’s discuss some new possibilities for the modern project today.
EV Chargers
Interestingly enough, by 2026, all brands of electric cars, which also include plug-in hybrids, will use the same type of plug for recharging. Much like all cell phones (hello, Apple) now have the same kind of cord for recharging, EVs and Plug-Ins will follow.
For EV and Plug-in Hybrid cars manufactured before 2025 or 2026, like the one I have, there are, or soon will be, adapters so anyone can use a charging station.
There is usually a fee one can charge for these.
Regardless of the current political climate, electric vehicles (EVs) are here to stay. They will only grow in numbers.
This could be a great way to get eyeballs on your projects, provide a needed service, and make money at the same time. One could even toy with the idea of charging less for customers. Just a thought.
Smart Access/Technology Up-Charge
This is not a totally new revenue add-on idea, and many are already doing so. However, an owner could consider implementing a monthly tech fee for smart access and/or other high-tech services their facility may offer.
In my opinion, this would largely depend on the demographic makeup of the trade area in which the facility is located.
If the average age is, let’s say, 57, and the household median income is, let’s say, $52,000 in the southeastern US, I doubt many would choose to pay or even bother with tech add-ons.
However, in an urban, let’s say, gentrified trade area with an average age in the 30s and median household income of $63,000 and up, it would probably work great.
Just my thoughts on the day I am writing this.
This fee could help defer the cost of the tech add-ons and really add value by (1) reducing labor costs and (2) going straight to the NOI line.
I have seen tech fees in the range of $10 to $25 per month so far. The cost for a door system, for example, is usually around the $250 to $350 range.
It’s not a bad solution for return on expenditure.
Package Handling
Certain customers, such as medical representatives, often have deliveries sent to self-storage facilities. As an owner, it might make sense to charge for this service.
We used to do it as a free service. Today, we will charge anywhere from 10% to 25% more on the monthly rental rate as an add-on service fee depending on if we are opening units, just accepting packages, and depending on the frequency.
No matter if you are opening units or just accepting packages, you are (1) increasing your liability and (2) incurring labor costs.
It is only right we should be compensated for this service.
Be sure to check with your attorney and insurance company and know the risks and costs of providing this service. But it could (1) allow you to rent to a long-term good commercial tenant and (2) get more rent than normal for it.
Boat/RV Add-On Fees – Concierge Services
Depending on the class of your boat and RV storage, an owner could offer and charge for concierge services. Such services could include, but are not limited to, the following:
- Grocery Assistance: Offering a pickup service for groceries and having the refrigerator stocked upon the customer’s arrival.
- Mail and package handling: Accepting and forwarding mail and packages during customer’s travel.
- Local Area Insights: Providing information about local attractions, restaurants, and activities for destinations that customers may visit.
- Repair concierge: Partnering with local licensed vendors for on-site mechanical repairs.
- Weatherproofing: Partnering with local licensed vendors to apply basic sealant for roof and siding.
- RV Covering: Applying and removing boat and RV covers upon arrival and departure. You can also sell them as well.
- Valet Services: Offering valet parking, vehicle delivery, and pickup, streamlining the storage experience.
- Pre-trip inspections: Checking tire pressure, fluids, and other vital systems before a trip.
- Exterior and Interior Cleaning: Offering both exterior washing and interior cleaning services.
- Tire services: Partnering with local licensed vendors to offer routine pressure checks, adjustments, and potentially tire repair services.
- Propane Refills: Keeping propane tanks full and ready for trips.
- Battery Care: Charging and replacement services for batteries.
I am sure we can only be as limited as our thinking allows for this service.
Boat/RV Add-On Fees – Solar Trickle Charge Fees
At the most recent ISS Convention, I met a vendor that markets trickle-charge solar panels that can be installed for individual canopy or enclosed unit boat and/or RV parking spaces for approximately $250.
Then you can sell, or as we are going to do, rent a connecting device to the panel that plugs into a battery and provides trickle charge service to the space being leased.
It looks like a computer power cord but with double plugs at one end that plug into an adaptor hooked up to the solar panel.
I like this because we can still get (I sure hope the current administration doesn’t kill this) the 30% federal tax credit for the cost of the panel and installation, as well as a monthly fee for the connecting device.
Often, Owners will charge more per month for utilities and offer the service, but I really like the solar panel idea.
- My utility bill doesn’t go up from tenant usage.
- In a year or so, the monthly charge covers the cost of the panel, and the rest is pure profit.
- I can market myself as “green.”
Conclusion
These are just a few outside-the-box ways to create additional revenue today for our projects.
Again, we are only limited by our thinking.
But whatever we do as add-on revenue, market it like crazy. Promote it in ads, online, on your website, with every inquiry call coming in.
Not adjust a feature, but think through the benefits offered for your customers and market those. For example, some of the concierge services at your boat & RV storage property not only make life more convenient for customers, but they can also keep the resale value of their expensive toy as high as possible as well as potentially offsetting the cost of storing with you.
What other facility can match that?
Have fun and share your ideas with all of us.
