Opinion on a Start up Self storage

billheyden

Hello storage people of America. I need some opinion's on a Storage Faculty with 324 indoor units. Just open in Jan of 2016. Have had occupancy rate from 0 to 80% in June and now the slow time is at 75%. With constantly doing over 25% of the projected money totals. Have a 4.6 star rating. I have never managed a self storage faculty. Been in retail management for 30 plus years. The reason I ask you professionals is that people in the business tell me this is very good. And others are not satisfied. I am confused so I was hoping on getting some input from people that have been doing this a long time. I am sure there are questions you may have and that is ok. Is this normal or above a first year storage will do.

Thank You for any input.

ThriftyStorage

billheyden, there are many factors that can affect the occupancy. If you are doing 75 to 80% is not to bad. How many other storage facilities are in your area? What kind of residential building are in the area, for instance, homes or apartment complexes. Are you on Google? I can keep typing, but I have been doing this for four years and I have gone through those same things. Just pay attention to what your competition is charging and go from there. I am at 85%, but have been as high as 92%.

Orkocean

0 to 80% in short time shows either there was an obvious void in the market which the facility filled to get the occupancy up OR the prices are drastically lower than the competitors generating all the rentals. Depending on how aggressive of a pro forma was used for the facility they could of been light on how much revenue they expected. The facility I'm at is low 70%'s but we're right at our target numbers for income banking 20-30k a month after everything is paid so raising occupancy will just be more gravy on top.

Generally a number I've known most investors and owners to be happy is the 92% range, lower and the opinion is you're not capturing enough of the market. Higher and the opinion is you're undercharging and leaving money on the table.

ThriftyStorage

Orkocean: how many units does your facility have?

Orkocean

This one we have 996 units across 4 properties with 3 of them being satellite lots

billheyden

Thank you all for your direction and commits. Orkocean there are 325 units. 13 other storage facilities within a 5 mile radius. My prices are in the middle of them all. Running specials on first month. 20 to 24k right now.