You are bringing on new self storage space for lease.
In my opinion, this is the riskiest proposition there is today for the small investor in the self storage business. However, it is usually part of our business strategy today, with prices being where they are.
Rarely, if ever, does a stabilized self storage facility become unprofitable. So how do we get from the new building to stabilized?
Here is a game plan (as opposed to the game plan).
Overview
Remember, self storage is a very local product—more than any real estate play and more than most any retail play.
In other words, you can send up a drone, and if it can see three to four miles, in all directions, in the majority of cases, you can see 85% to 90% of your customers.
That’s local!
So, your strategies are mostly designed to make those people aware of your presence. Statistically, around 10% of them are using or need to use your product at any given moment.
Simply put, you want to inspire them to take the action of contacting you in some way.
Signs
Start simple. Signs and banners.
Depending on the location, a certain percentage of your customer base will drive by your location.
You want to attract their attention at that moment with signs and banners.
If your facility is not open, then have a 4 x 8 sign or something with a rendition of what is coming and a number to call for move-in promotions.
Often on expansion projects, we put banners up offering some type of move-in special during the new space’s construction.
Make sure your website is on the sign as well.
Here are some interesting stats from Google (slightly dated, from 2018).
- 83% of people searching for self storage online do not have a specific storage company in mind.
- 2-4 facilities are the average number of facilities considered.
- Frequent movers, home upgrades (or perhaps changing their homes due to new COVID lifestyle), and suburban renters account for 61% of self storage market searching on Google for self storage.
So, what does that tell us?
Show up on Google.
As high up on the first page as you can for people in your market area searching.
My simple way of thinking is that when someone in my three-to-five-mile market area searches, I want them to:
- Say mentally, “Oh yeah, that facility I have seen as I drive by.”
- “What is their number?” or “What are their rates?” or whatever… I just want them to click something or call (in online-speak, this is a “conversion“).
If this is my strategy, it seems the game is to show up as high up on page-one as I can.
In today’s world (created by Google), that means I have to pay for it.
Pay-per-click advertising
Make sure you have a healthy budget for this in your proforma. Your thoughts about Google or big companies are irrelevant. If you want to advertise your self storage facility today, Google is today’s Yellow Pages.
(Also, remember, Google started as an idea in someone’s mind just like your self storage company is now, or was when you started. They just were very successful.)
In all actuality, it is still less expensive than Yellow Pages was back in the day.
I would start ramping up your pay-per-click in conjunction with the other online strategy as outlined below.
New Facility Online Lease-Up Strategy
In a perfect world, I suggest something like the below.
6-9 Months Out:
- Purchase a domain name for a website.
- Launch a landing page at the domain.
- Have photos of construction progress.
- Have a “Call Me,” or “Contact Us,” and an online offer of some sort. If you have existing space, some offer for that space now, then an option to relocate or something. Most will stay where they are.
- Don’t expect a lot of business, but this is more to generate awareness and to have them focus on you. Not everyone who finds this will need storage at that moment.
- Your website provider can create a landing page if you can’t. I use Lead Pages for landing pages and redirect them to the domain. I like also like to try and capture email addresses for future marketing.
3-6 Months Out:
- Consider using a live webcam on your landing page.
- People watched one on Mars. Your construction site probably has more action.
- Keep photos updated.
- Try some type of exchange for an email address, like a coupon for a free or discounted lock. These email addresses can be used for future marketing.
2-3 Months Out:
- If you haven’t done so already, verify your company on Google, Bing, Yahoo and set up a Facebook company page.
- If you are unsure what this is, search for “verify my company” in google and follow the directions or have your web site provider do this.
- If you want to use Yelp, set that up as well.
1-2 Months Out:
- Launch website with the new unit mix included.
- Be able to take reservations.
- Specials if you want.
1 Month Out:
- If post-COVID, have a Grand Opening scheduled.
- Usually, a month or two after you are actually open with CO or temporary CO to work out any bugs.
- If you are creating blog content, have a content schedule.
- Start ramping up Google pay-per-click ad spend.
A Few Other Notes
As much as possible, have your content, if any, be more about local businesses and interests as possible—less about how to pack a unit with stuff. No one reads that anyway. It is just filler.
Ensure your site and online content show up dynamically so that no matter what the device is used, it is easy to read. Think, “mobile-first.”
I have learned the hard way, set up tracking for your conversions as early in the game as possible. Track your leads. In other words, track how people are reaching out to you, calls, emails, reservations, online leasing.
Be able to use your analytics to know your conversion rate for each way you can capture a lead. It is much easier setting this up earlier rather than later in the process.
Also, know you won’t get everything right.
Here is the good news, you don’t have to. Just have a game plan and execute a strategy. You will usually get enough things right to win the game you are playing.
And for us, that game is 85% or more as fast as possible.
