The Value Of Property Management

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You might think it is costly to make sure all your phone calls and all your internet leads get answered and followed –up on. If you are not using a call center like PhoneSmart and you are not forwarding calls to your cell phone, you are missing out on a small fortune.

You might not get excited about renting an extra unit this month to someone…someone you rented to only because you were paying attention to all your inquiries. But take a second to do the math. If an average renter gets a $60.00 a month unit and stays 10 months, each rental is worth $600.00 over the time you do business together. Now if that customer buys a $10.00 lock and $40.00 worth of boxes, the value is up to $650.00.

If you are working your customer base correctly and giving people a good storage experience, you may be getting a referral customer from 1 out of three current occupants. That means a new customer is actually worth better than $800.00. Now if you can gain two new customers a month because you have a good lead capture and a good lead follow-up system in place, we are talking about $1,600.00 a month that goes to your bottom line. It is quite common to rent two extra self storage units a month, just by paying attention.

Your expenses have not changed in dealing with these two new customers, so their revenue is almost pure profit. In a 12 month period you could easily create an extra $19,200. I don’t know about you, but I would take an increase of almost $20,000.00 in my paycheck if all I had to do was try a little.

But here is the kicker. Self storage is more than a business. It is a real estate transaction. Your real estate is valued according to the revenue it can generate. It is not uncommon for a property to be valued at 10 times annual revenue. This means that those two extra rentals a month have increased the value of your real estate asset by $190,000.00. That is a small fortune. That is also how much value you are letting slip away from you every year you neglect your missed phone calls and your unanswered internet leads.

Written by Tron Jordheim.

Tron is the director of PhoneSmart, an off-site sales force that serves self storage owners. More information is available at www.selfstorageblog.com

Your local self storage unit provider in 1601 Twilight Trail Frankfort, KY. 40601

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.