Traditionally May through August are prime months for self-storage rentals, as that is the time when the bulk of home sales take place. Unfortunately for operators with empty units to fill, the housing market isn’t doing so hot.
The supply of homes for sale recently hit a 5-year high and existing home sales reached a 6-month low, according to a new report from Redfin. In April, pending sales fell 3.5% from the previous month and 2.9% from the previous year. Meanwhile, the number of active listings has grown 16.7% since last year reaching levels not seen since March 2020. Increasing home costs, elevated mortgage rates and economic uncertainty are keeping many buyers on the sidelines.
That said, people are still moving and they still need storage. But there is less demand volume, and declining occupancy levels and rental rates in the storage industry bear this out. As a result, competition in the industry is heating up this summer as operators vie for every prospective tenant.
So, how can your storage operation seize the moment and attract and convert more leads during the busy season? Here are some key tools and strategies for edging out the competition.
1. Follow Up with Every Lead
When customers reach out to your facility, chances are they are reaching out to several others. That’s why responding to every lead quickly is essential. Waiting until the end of the day to follow up is a sure way to make sure your prospect rents a unit from the competing facility down the street.
If you receive a large number of inquiries or operate multiple facilities, keeping track of every incoming lead and responding to everyone in a timely manner can be challenging. That’s where investing in a customer relationship manager, or CRM, comes in handy. With a CRM, incoming leads are instantly added to a database and automatically responded to with customized messages.
2. Optimize Rental Rates Dynamically
Hotel, airlines, and major storage REITs adjust their prices in real-time—why shouldn’t you? As demand fluctuates it’s important to make sure your rates are optimized so they are just right, not too high and not too low. This strategy ensures that you are achieving the best market rate for your units, while still appealing to price conscious storage customers. Using a facility management software solution that features dynamic pricing capabilities is key when it comes to competing on a level playing field with larger storage operators.
3. Make the Rental Process as Convenient as Possible
These days convenience is king, and many consumers expect instant gratification. That means if they can’t complete the rental process online using their mobile device, they’ll move on to another operator with better tech. A website that offers live inventory, online rentals, and a payment portal for tenants are must-haves in this day and age. Without it, you are limiting your potential market considerably.
4. Target the Right Customers with Online Marketing
Searching online is the default method for finding goods and services for a growing share of storage seekers, so making sure your business is visible and targeting the right consumers is essential. With paid ads on Google and social networks like Facebook, your storage business can achieve steady and predictable results. Choosing a trusted partner to handle your digital marketing services is the most effective way to make sure all of your online marketing bases are covered and the right audiences are targeted.
5. Take Advantage of Online Marketplaces
Many storage seekers turn to online aggregators like SpareFoot so that they can easily comparison shop, read reviews, and locate storage facilities in their immediate vicinity. These time-tested marketplaces can help expand the reach of your business and provide your business with qualified leads that are ready to move-in.
If you’re already listed on marketplaces, now is the time to update your listings and make sure everything is accurate as the busy season gets underway. Create new promotions, add fresh photos, and adjust your bidding strategies to stand out from the pack.
Seize the Busy Season
The busy season only comes around once a year, so make sure you are doing everything you can to make the most of it. Prioritizing lead follow up, optimizing rental rates, stepping up your online marketing, making sure renting from you is as easy as possible, and using online marketplaces to your advantage are some of the most effective ways you can drive tenants to your facility this summer.
Want to dive even deeper into smart summer strategies that achieve results? Don’t miss our upcoming live webinar on May 29th featuring a panel of fellow storage operators who will be discussing their approach to attracting more tenants this busy season: Register here.
