Section 6 • Management
on a show—just as they do daily for their customers. Then, using the flow of communication, owners can let management know of any changes they desire about the store or its operation. This method allows for managers to get feedback and di-
rection, and self-storage owners should include some positive commentary as well. With your input, the management com- pany has the ability to get with the onsite managers to dis- cuss and enact a plan in response to your requests. It provides for a smoothly flowing stream of information and measurable improvements. If fewer problems and increased income are your goals so
that you can focus on your primary business, then third-party management may be a great fit for you. Partnering with a man- agement firm does just that. If, however, you are pretty certain that you will want to micro-manage every detail of your facil- ity’s operation, third-party management may not be well suited to you. But even for those who fit the latter category, outside management can be their nirvana: having someone to handle details on multiple fronts simultaneously. You could also benefit from a management company’s inspection of your store and its consultancy in general to determine how you might strengthen operational performance.
Other Important Details Get reliable references on any third-party management compa- ny you are considering. Is the company a member of state and national self-storage organizations? Do they contribute articles and/or provide training to larger audiences? You want someone who stays at the forefront of the industry and its latest trends and technologies. These can improve your operation and can often lower your costs, increase your income, expand your mar- keting efforts, and provide consistent, reliable reporting. Ask other owner clients of the management company with similar size or number of stores as you about important aspects, and visit facilities they manage. Each contract will have several exhibits within, and you may
want to have an attorney look over the agreement. Be sure you also understand and agree to the formats for your reports and be sure they are attached to the contract. These may include the monthly cash flow statement, proforma and budgets, or other report samples. If you require specialized formats or reporting, be sure this is discussed during negotiations. Numerous reports are available from today’s self-storage
operating software. Review what is included in the standard re- porting package. With most Web-based operating systems, you are free to access any report, anytime, from anywhere. Other re- ports or data may be available at no cost to you, while some may increase your startup fee if included. Frequency for all types of reporting should be an established—monthly, at minimum, for financials and copies of site visits by management. Areas of concern or variances to budgets should also be re-
ported. Emergency procedures should be in place to contact the owner under specific situations. Owners may want monthly face-to-face visits or they may be as infrequently as annually in the case of absentee owners.
80 Self-Storage Almanac 2015 If you are expecting to receive a high level of personal atten-
tion such as daily phone call, weekly meetings, extended report- ing, and additional marketing plans and programs, be prepared to pay more for these services. You may have to choose which of these is most important to you—a discounted rate or expanded services. You will likely not get both. Many management companies provide owner training class- es and other specialized owner reporting. Management compa- ny professionals want you to understand the reports being sent to you and your team. This can help you maximize your use of the operating software and understand which reports and data are impacting the operation. Ask if owner training is available and if it’s included in your contract. Ultimately, most owners sign contracts with management
companies because of the financial benefits they can provide. Third-party management businesses can grow income at the self-storage store, which drives up the asset value and puts more money back into the owner’s pocketbook—all while eliminating many of the headaches that come with running the day-to-day operations at the site.
Owners
Third-Party Management should expect
Potential Benefits of that management will
improve the property’s performance in ways that ultimately contribute to the bottom line. Third-party management may offer these benefits:
• Key business relationships and discounts • Better evaluation of software and technology • More knowledge of legal requirements and regulations
• Lower insurance rates • Bulk purchasing discounts • Reduced liability through requirement of customer storage insurance and better standard operating procedures
• Innovative sources of ancillary income • Immediate access to national level expertise and supporting resources
• An independent, experienced viewpoint. Owners face many critical decisions daily and a third-party management company can provide fresh, experi- enced, industry standard perspectives to issues you may encounter.
erties, expect a full menu of services and seek out expertise that
When deciding who should manage your prop- goes beyond operational issues.
For success, partner with a company that brings an own- er’s mindset to the table and can develop strategies that meet the owner’s business goals.
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