The motivation varies but the need is always that the business requires dedicated focus to excel. Additional reasons are increased cash flow even after fees, minimizing exposure to liability issues and other legal problems, transferring personnel responsibility, as well as a very important one - the freeing up of an owner's time to pursue other interests.
The conversion rate is the ratio of rental contracts written as a percent of rental inquiries. For example, if during the month you receive 60 rental inquiries and write 39 contracts, you have a 65% conversion rate. In the case of very high conversion rates, perhaps your rental rates are too low?
We calculate the conversion rate for all sizes in all facilities every Monday morning. If a particular unit has a low conversion rate, the problem is either the pitch or the price or a combination of both. Generally the problem is the price so we discount that unit size to increase the conversion rate. Our conversion rate goal is 65%.
The conversion rate generally tells us when a manager has lost her edge. We also use role-playing quite extensively as well as mystery shops and recorded phone calls.
There are many factors but I would say that the most important ones are competent well trained on-site staff, really good customer service and consistently competitive rental rates adjusted for current unit inventory.
Obviously an owner needs to do everything he or she can to protect the customers' goods. There are a lot of fancy electronic systems on the market that are very expensive and not infallible. In my opinion 24/7 video security along with entry code access provide the most cost effective security.
Unless there are special circumstances, we like to have the facilities we manage within the Northeast or Mid-Atlantic, other areas will be considered.
Management companies charge a management fee for their services the same as any other professional. Typical fees are defined as a percentage of collections with a minimum base. We believe hiring a professional manager should be considered an investment to enhance your financial results as well as free you from the burden of operating your storage property. The more important question to ask is what is the return value I can expect from my investment. In our experience we have been able to increase income during the first year or sooner to fully offset our fee and most often much more. In short, SIMI is your key to claiming your upside potential.
Large management companies are good at what they do to the extent they can be when managing hundreds of properties. They typically employ a "one size fits all" cookie cutter program for their benefit. Many require you to brand your property under their name using the theory of name recognition. But storage is a local business where the #1 reason a customer chooses where to store is convenience (aka location), not brand loyalty similar to that of hotels or airlines. Another consideration, when you part ways your property will have no identity of its own.
SIMI is sized to allow us to have a laser like focus on your property and its market. Our management plans are unique to each property we manage. Plus, we offer everything the big guys do, working with dedicated and effective partners to provide the best online marketing programs, cost effective property and liability insurance, discounted credit card processing fees and much more. In short, with SIMI your satisfaction is important to us so why be a little fish in a big sea?