Management • Section 10


• Maintenance • IT services and technology deployment • Education • Call centers and kiosks • Audits • Operating software and credit card processing • Operational late fees, policies, and auction processing • Startups* • Rehabs* • Disaster recovery* • Annual budget preparation and monthly monitoring, upcoming capital expenditures or maintenance reserve needed


• Regular analysis of performance *may involve additional fees or agreements


It is easy to see here that costs for management has


increased over the years in dollars per square foot. These num- bers include all salaries for on-site personnel, their bonuses, health care and tax contributions, and the management fee, which averages approximately six percent. It is important to note that while the actual costs have risen, the percentage re- quired of the actual income has remained fairly stable from 19 to 21 percent of income.


Fee Management This is just what it says, management, accounting, and oversight services for an agreed upon fee or percentage of gross income (or minimum monthly dollar amount), which- ever is greater. Minimum fees range from $2,200 to $3,000 per month for stores


in lease-up while


income is building or for a smaller site. Management fees will generally fall in the five to seven percent range for a single-store location, with most being six percent. This fee is cal- culated on the adjusted gross income per month and is paid monthly, typi- cally in arrears. This means that services rendered in January will appear on the January statements (delivered to clients in February) and be paid once the month ending has occurred and been reconciled, likely around the 10th of February in this example.


Multiple store discounts are sometimes 2021 Self-Storage Almanac 97


given to a single client and can be as low as four percent of gross income. Start-Up Fees are between $3,000 to $10,000 to assimilate a new property and set up the company’s guide- lines, including the business set up for the operating system, website, social media, marketing programs, and account- ing set up, including budgets and projections and manager training.


It is important to note that while the


actual costs have risen, the percentage required of the actual income has remained fairly stable from 19 to 21 percent of income.


Measuring expenses both ways to see not just costs per


square foot per year but trends in the percentage of income required for that source is important in order to see the big picture.


Without taxes, 2019 expenses were 38.36 percent; 2018


expenses were 38.55; 2017 was 36.71 percent. Advertising costs were 4.29 percent of income in 2019 and 2.6 percent of income last year. This included social media ads, pay-per-click advertising online, promotional items and events on site, and sponsorships.


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