How does a bad neighborhood impact a storage facility? Any thoughts?

ThriftyStorage

Comments please.

Orkocean

If you're trying to run a "high end" site geared towards the upper class then it's gonna be a harder task if your surrounding area isn't very friendly for people to venture in to. With my previous company one of our top sites for effective rate growth year over year was in an area where you had nonstop shootings, street walkers, people trying to live in units etc.. A public storage across the street from it even had one of their workers robbed and stabbed in the neck. We let that store off from some of the normal company "Standards" and got their merchandise from another source to be cheaper. With the workers we put in place at the site providing such a high level of customer service compared to the previous owners/management the store thrived.

ThriftyStorage

Orkocean: So the store in the crime ridden area THRIVED???

shafferdm

We have a facility here in Raleigh, NC on Capital Blvd.  It is in a high crime area with low income housing and cheap apartments and weekly hotel rentals.  I have seen alot in my 11 years here but nothing we can't handle.  We had a couple break ins, but nothing serious and since have installed adequate security.  We keep it clean, we stay strict on rules ie. no bands, loud music, no hanging out, no working on cars etc.  We provide a high level of excellent service.  We have assigned parking, no tailgating in/out of the gates.  At night it's lit up like an NFL football game.  We have good motion/infared security but most of all, we treat our tenants like we want to be treated and have very little trouble.  WE DON'T have 24hr access. Anyone who is on the lot after 9pm is trespassing and will be subject to police removal, no exceptions.  We've not been robbed yet in 30+ years...knock on wood, but I know 2 local shop keepers, one a tobacco store owner and one a pawn shop owner who have been murdered in the last 10 years within a mile of my facility.  I would say we are very successful.  We stay above 90% Occupancy and keep delinquency low.  We don't tolerate people sleeping in units and when it occurs, its immediate eviction. Good consistent management is the key.  It would be hard for anyone to do this job in this location but my resident manager, Thomas Meutsch, makes it work really well.  There is a delicate balance between being too intolerant and knowing when you can make an exception.  As far as pricing goes, we are lower end of the spectrum but we are a 30+ year old tired looking (but clean) facility so go figure.  Recently, we reopened our parking lot with assigned spaces and good signage.  I doubled the prices. The result is high end RV's and boats and NO junk cars or everyday in/out work trailers.  I have a "current tag/no flat tires or broken windows" policy.  So most tenants in  the parking lot do not come and go everyday...nor does the headache that can come with that like excessive gate wear or trash spilling out of work vans every afternoon and morning.  Also, there aren't 30 workers constantly trying to squeeze there cars everywhere and then hop in a big truck to go to work.  I hope this helps.       

Orkocean

ThriftyStorage said:

Orkocean: So the store in the crime ridden area THRIVED???

Yes, when we took it over my boss and I did a night walk of it. Kicked about 15 people living in units out, got rid of the loitering riff raff in units and got tenants in who were actual people needing storage. Ended up constantly having waiting lists even with much higher pricing than compared to the local market competitors and frequent rent increases to boost the rate growth. The key to this facility and it's success was bending on what was allowed at the property. This particular area had a HIGH amount of tenants who wished to store items to sort and send to Haiti. We got rid of everyone at first to clean it up. Once we got things in order at the site we opened it back up with strict rules and got everyone who wished to do it in line with our new rules and keeping it orderly and clean. Where they used to pay $75 for a trailer to come and sit for 2 weeks to be loaded we got them paying $150 for 4 hours of loading time. Multiple trucks a week alone was a good boost to revenue not counting all the merchandise and rentals fees.

ThriftyStorage

I had to do the same thing. Right now I'm at 83%.

shafferdm

We have a guy loading a trailer about once a month to go to Gambia, Africa.  He is grandfathered in. A dozen more have requested it but we refuse.  Thrifty, we are heading fast into the busy season so you will be 90%+ in no time.  Also, we use sparefoot to fill vacancies as well.  Pricey, but worth not being vacant.  It has definitely filled my parking lot up which pays for the service and then some.  

shafferdm

Orocean, I have kicked my share of unit dwellers out.  I hear ya.  It's hard to explain to the nice woman in a Honda minivan decluttering her home that the person peeing in bottles next to them lives there...Congrats on getting your facility back in the game! Awesome success!