Great advice- I just looked at my clients on our software, and there are several that have not had rate increases in years. A couple of units stood out as having rent well below market. I was just leaving money on the table as we are 100% at capacity, turning down prospective tenants. There is a tendency to be lazy when owning volume rentals-"it's full, we must be doing well". Great video. Thank you for the money you just "gave" me. I was being very careful monitoring the collections and payables, without looking at the big picture- revenue per unit adds up very quickly with incremental rate increases. Tenants are expecting price increases with all of the media attention to inflation. I will not let this happen again.
Barry this is so awesome! Revenue management is a huge "money left on the table" item that so many owner/operators can miss. So cool to hear you identified this issue and are taking the steps to getting that money OFF the table. I love hearing stuff like this. Thanks for the great comment and for tuning in!
From Page 33 of your book: Those extra lines of products (insurance, packing supplies, etc.) could be anywhere from 5 to 10% of gross revenue. That can translate to millions of dollars. That doesn’t happen when you buy an apartment building. Somewhat true, however, apartments manage their income flow via charging for water & sewer & cable TV (Internet) Osborne, AJ. The Investors Guide to Growing Wealth in Self Storage: The Step-By-Step Playbook for Turning a Real Estate Asset Into a Thriving Self Storage Business (p. 33). JamesBrennae Publishing. Kindle Edition.
Thanks for watching, for the great comment, and for picking up a copy of the book! Great insights on revenue management for apartments. One of the biggest things I like to instill is the strong retail nature of storage versus apartments. This is a perfect example. Thanks Ronald!
I do believe there is a ceiling to the increase model. Consumers can only take so much and this will come back around where the facilities that back off the constant price increases will have better occupancy. We recently moved out of a 10x30 climate controlled because it had tripled in price in 5 years and we were paying nearly $400 a month each. We found this to be insane so there is a maximum cost at least for certain timelines. Maybe raise for a few years and then pause for a few years and let inflation catch up. Recent inflation is a bad example.
This is excellent information. Thank you. My mother tried getting into real estate and my household stayed above povert thanks to her foresight renting out a second home. I hope to follow and improve on those footsteps. This seems like a very lucrative, low maintenance option. Considering warehouses as property as well and other things. But this seems to be the most lucrative for the least amount of direct work, leaving time for another job concurrently.
You're welcome! Thank YOU for tuning in and sharing your story. Real estate is a great tool. Storage can definitely be a great asset to hold and there are certainly ways to streamline and improve operations. Don't get too caught up thinking there's not much work, management, etc. in storage. It functions a lot like retail and can be very management intensive. To get the most out of it, you should run it like a business.
Hi AJ, I enjoyed all the content in that video! I'm also curious about your opinion. Do you think the same revenue management is applicable for a small facility up to 40 units? I mean if more/less progressive revenue management can better fit a smaller facility. Thx!
Man I just got your book and started watching your content. I have wanted to get into the storage business since I was 19 and now I have the path laid out for me to go achieve my dream. Thank you for sharing this with us man.
AJ, you mentioned a "schedule". Is that something that's baked into your lease agreement that the customer is aware of at signing or is that something that you guys sort of secretly do in-house? Do you sent out a notice 30 days in advance? And am I right in thinking that you never up their rent more than what you have listed on the website for that facility? So if you're advertising $100 for a unit, you don't raise someone to $110? Does that make sense? You're very helpful and I appreciate your videos!
Hey Dante, you'd generally sign an NDA and the seller/broker would then provide you with the facility/business financials to review. This is also generally happening at the same time you're submitting your LOI or PSA if the property looks good to you. Thanks for hanging out and for the comment!
This is the most encouraging video I have watched yet in my self storage journey. I never comment on videos but this is Packed full of great information and mindset advice. AJ, do you have sample contracts describing that activate rate increase and rate increase letters when you take over a facility? I’m looking to purchase my second facility and want to do a better job at executing these strategies than I did at my first. How can I connect with you and your group to help add value to this industry in my area. Thanks in advance!
That's so awesome to hear Katie! Thanks so much for the support and watching! That's the goal, I love being able to share this stuff out with you guys. Awesome to hear you're going for your second facility! The first is always the hardest and I have no doubt you're going to kill it on this second one. As far as execution, keep doing what you're doing, look for educational resources that help give you the insights to to more and do better. It also has a lot to do with applied learning, or learning that you accomplish only by doing. I'd also encourage you to become part of your local, state, and national storage associations. Go to events, meet other storage investors, and always keep learning. I'm actually doing a huge event for storage owners and investors in Coeur d'Alene, ID in September. Here's a link to check it out. storelocal-4863644.hs-sites.com Thanks again Katie!
Do you include the rate increase schedule in the lease on move-in? If that is done is there a need to notify clients each time a increase is required so it happens automatically?
Thank you so much for these videos and teachings. What is the best software for a rural c market locations with no office and no onsite manager? Tenant, Storable, or some other software company that you like the best to get drivers licenses and credit cards and sign agreements from customers smart phones?
Should a tenants price increase ever go over Street rate listed? In my area over the last month I have seen facilities start to have units available That has shown full.. They have decreased their pricing to lease back up. If I want to match their pricing I’m worried to increase my current customer rate higher than street.
Hi, I am actively looking at purchasing a storage facility and I was wondering what software you would suggest using when I purchase a facility. Thanks for the Great videos.
This is a great question to start asking yourself. There are a ton of good software products that you can use for your facility depending on your needs, preferences, etc. It'll just take some time finding what works best for you. I'd recommend checking out Tenant Inc. and Storelocal, tons of great resources there. Thanks for the great question and for watching Jared!
So does your website change to dynamically reflect the current price so that new tenants come in paying the current rate? Also do you announce to each tenant that their rate is increasing or just have it go into effect automatically?
You got it, all of that is managed through the software and reflected on the website. And exactly right, the tenants are provided notice in the initial contract that they can expect periodic rental increases, and they also receive notices when that rate is changing. Awesome questions! Thanks for tuning in!
Just curious? But say for instance a tenant vacates the property then a new tenant fills in the previous spot. Does the price change or is it consistant
This is a great question! Dynamic pricing (like what you see on airplanes) is a great way to maximize a facilities revenue. So to answer your question, yes, the price could very well change (and generally should). If all your 10x10's are full except 3, it makes all the sense in the world to charge more for those units as there is less supply and high demand. Thanks for the awesome question!
Call or walk into the storage facilities in that area and ask them what they have available, how many they have, etc. Secret shopping can be a great strategy to help gauge demand. Thanks Jerry!
Hi AJ, I've tried that. I called one of the facilities and and asked them what they had available. They all replied back with "what are you storing, putting in there?" Unless you get fortunate and speak to a young inexperienced worker, these managers are too smart on spilling the beans on their inventory.
So awesome to hear! Doing it right from day one can be crucial, I'm glad to have you along for the ride and glad to hear you're enjoying the info and the videos. Feel free to post any questions you might have. Helps me know what videos and podcast topics to do in the future. Thanks TheReconRacoon!
![How to Find A GREAT Storage Investment DEAL [3 Simple Keys]](http://i.ytimg.com/vi/6nDRuPbOS3g/mqdefault.jpg)
Great advice- I just looked at my clients on our software, and there are several that have not had rate increases in years. A couple of units stood out as having rent well below market. I was just leaving money on the table as we are 100% at capacity, turning down prospective tenants. There is a tendency to be lazy when owning volume rentals-"it's full, we must be doing well". Great video. Thank you for the money you just "gave" me. I was being very careful monitoring the collections and payables, without looking at the big picture- revenue per unit adds up very quickly with incremental rate increases. Tenants are expecting price increases with all of the media attention to inflation. I will not let this happen again.
Barry this is so awesome! Revenue management is a huge "money left on the table" item that so many owner/operators can miss. So cool to hear you identified this issue and are taking the steps to getting that money OFF the table. I love hearing stuff like this. Thanks for the great comment and for tuning in!
From Page 33 of your book: Those extra lines of products (insurance, packing supplies, etc.) could be anywhere from 5 to 10% of gross revenue. That can translate to millions of dollars. That doesn’t happen when you buy an apartment building.
Somewhat true, however, apartments manage their income flow via charging for water & sewer & cable TV (Internet)
Osborne, AJ. The Investors Guide to Growing Wealth in Self Storage: The Step-By-Step Playbook for Turning a Real Estate Asset Into a Thriving Self Storage Business (p. 33). JamesBrennae Publishing. Kindle Edition.
Thanks for watching, for the great comment, and for picking up a copy of the book! Great insights on revenue management for apartments. One of the biggest things I like to instill is the strong retail nature of storage versus apartments. This is a perfect example. Thanks Ronald!
I do believe there is a ceiling to the increase model. Consumers can only take so much and this will come back around where the facilities that back off the constant price increases will have better occupancy. We recently moved out of a 10x30 climate controlled because it had tripled in price in 5 years and we were paying nearly $400 a month each. We found this to be insane so there is a maximum cost at least for certain timelines. Maybe raise for a few years and then pause for a few years and let inflation catch up. Recent inflation is a bad example.
Absolutely the guru of self storage! Following your techniques/strategies re pricing/revenue raising.
This is excellent information. Thank you.
My mother tried getting into real estate and my household stayed above povert thanks to her foresight renting out a second home.
I hope to follow and improve on those footsteps. This seems like a very lucrative, low maintenance option. Considering warehouses as property as well and other things. But this seems to be the most lucrative for the least amount of direct work, leaving time for another job concurrently.
You're welcome! Thank YOU for tuning in and sharing your story. Real estate is a great tool. Storage can definitely be a great asset to hold and there are certainly ways to streamline and improve operations. Don't get too caught up thinking there's not much work, management, etc. in storage. It functions a lot like retail and can be very management intensive. To get the most out of it, you should run it like a business.
Hi AJ, I enjoyed all the content in that video! I'm also curious about your opinion. Do you think the same revenue management is applicable for a small facility up to 40 units? I mean if more/less progressive revenue management can better fit a smaller facility. Thx!
Great information. Thank you!
Glad you like it! Thanks for watching ChakRaw4Life!
Dude. You're a boss. Thank you for sharing this knowledge.
You bet ProgrammedKing! I love being able to share this stuff out. Thanks a ton for the support!
High quality actionable content AJ. Thank you! I am collecting my thoughts now and calling my operations leader this morning.
Hey Kale thanks for tuning in, glad I could provide some insight for you :)
Man I just got your book and started watching your content. I have wanted to get into the storage business since I was 19 and now I have the path laid out for me to go achieve my dream. Thank you for sharing this with us man.
Thanks so much for the support Deanryan! Really means a lot to hear and happy to help.
I love capitalism. Another great video A.j.
Right there with you! Thanks Ronny!
@@SelfStorageIncome 9:42 LoL
AJ, you mentioned a "schedule". Is that something that's baked into your lease agreement that the customer is aware of at signing or is that something that you guys sort of secretly do in-house? Do you sent out a notice 30 days in advance? And am I right in thinking that you never up their rent more than what you have listed on the website for that facility? So if you're advertising $100 for a unit, you don't raise someone to $110? Does that make sense? You're very helpful and I appreciate your videos!
At what point should you look at the sellers revenue numbers to compare against competitors?
Hey Dante, you'd generally sign an NDA and the seller/broker would then provide you with the facility/business financials to review. This is also generally happening at the same time you're submitting your LOI or PSA if the property looks good to you. Thanks for hanging out and for the comment!
Great content, as always!
Thanks Bill!
This is the most encouraging video I have watched yet in my self storage journey. I never comment on videos but this is Packed full of great information and mindset advice. AJ, do you have sample contracts describing that activate rate increase and rate increase letters when you take over a facility? I’m looking to purchase my second facility and want to do a better job at executing these strategies than I did at my first. How can I connect with you and your group to help add value to this industry in my area. Thanks in advance!
That's so awesome to hear Katie! Thanks so much for the support and watching! That's the goal, I love being able to share this stuff out with you guys. Awesome to hear you're going for your second facility! The first is always the hardest and I have no doubt you're going to kill it on this second one. As far as execution, keep doing what you're doing, look for educational resources that help give you the insights to to more and do better. It also has a lot to do with applied learning, or learning that you accomplish only by doing. I'd also encourage you to become part of your local, state, and national storage associations. Go to events, meet other storage investors, and always keep learning. I'm actually doing a huge event for storage owners and investors in Coeur d'Alene, ID in September. Here's a link to check it out. storelocal-4863644.hs-sites.com
Thanks again Katie!
Do you include the rate increase schedule in the lease on move-in? If that is done is there a need to notify clients each time a increase is required so it happens automatically?
Thank you so much for these videos and teachings. What is the best software for a rural c market locations with no office and no onsite manager? Tenant, Storable, or some other software company that you like the best to get drivers licenses and credit cards and sign agreements from customers smart phones?
Awesome question! Tenant is an amazing solution. Definitely check it out. Thanks for the support and for the great question!
Should a tenants price increase ever go over Street rate listed? In my area over the last month I have seen facilities start to have units available That has shown full.. They have decreased their pricing to lease back up. If I want to match their pricing I’m worried to increase my current customer rate higher than street.
Hi, I am actively looking at purchasing a storage facility and I was wondering what software you would suggest using when I purchase a facility. Thanks for the Great videos.
This is a great question to start asking yourself. There are a ton of good software products that you can use for your facility depending on your needs, preferences, etc. It'll just take some time finding what works best for you. I'd recommend checking out Tenant Inc. and Storelocal, tons of great resources there. Thanks for the great question and for watching Jared!
So does your website change to dynamically reflect the current price so that new tenants come in paying the current rate? Also do you announce to each tenant that their rate is increasing or just have it go into effect automatically?
You got it, all of that is managed through the software and reflected on the website. And exactly right, the tenants are provided notice in the initial contract that they can expect periodic rental increases, and they also receive notices when that rate is changing. Awesome questions! Thanks for tuning in!
Just curious? But say for instance a tenant vacates the property then a new tenant fills in the previous spot. Does the price change or is it consistant
This is a great question! Dynamic pricing (like what you see on airplanes) is a great way to maximize a facilities revenue. So to answer your question, yes, the price could very well change (and generally should). If all your 10x10's are full except 3, it makes all the sense in the world to charge more for those units as there is less supply and high demand. Thanks for the awesome question!
How do you determine what the rest of the market is as far as occupancy goes?
Call or walk into the storage facilities in that area and ask them what they have available, how many they have, etc. Secret shopping can be a great strategy to help gauge demand. Thanks Jerry!
Hi AJ,
I've tried that. I called one of the facilities and and asked them what they had available. They all replied back with "what are you storing, putting in there?" Unless you get fortunate and speak to a young inexperienced worker, these managers are too smart on spilling the beans on their inventory.
What software do you use?
Hey @angelafleminghildebrand8784 - hope you're gonna find this helpful! ruclips.net/video/F0qQixh-DkQ/видео.html&ab_channel=SelfStorageIncome
Stop the zooming in and out when you are making a statement.....please.
Thanks for tuning in Nancy! Hope you still enjoyed the information at least lol.
I'm positioning myself to get into the market but I want to do it right. So many questions! Thank you for the videos
So awesome to hear! Doing it right from day one can be crucial, I'm glad to have you along for the ride and glad to hear you're enjoying the info and the videos. Feel free to post any questions you might have. Helps me know what videos and podcast topics to do in the future. Thanks TheReconRacoon!
@@SelfStorageIncome thank you!