It’s no secret that the self-storage industry has grown significantly over the past ten years. As the market expands, there’s a growing need for sophisticated management solutions to maximize profits and operational efficiency while ensuring an optimal customer experience. To maintain a competitive edge in this rapidly changing market, integrating automation into your management strategy is essential.

Automating Your Storage Operations To Make Cash Flow Easy

When you think of self-storage automation, you might initially associate it with unmanned or remotely managed storage facilities. While it is necessary for these models, there are many lucrative ways for the traditionally managed storage model to use automation as well. Here, we’ll explore two strategies transforming the storage industry—each packing a powerful punch, but together, they equip operators with the tools to stand toe-to-toe with industry giants.

What is Automated Rent Management for Self Storage?

Think about all the time involved in manual rent management—it’s a very labor-intensive process. However, automating this process alone can drastically increase your operational efficiency. With an industry-leading software solution, facility managers can automate tasks like tenant communications and promotions, delinquencies, invoicing, and payment processing.

Let’s take a look at some of the key benefits in more detail:

• Improved Accuracy: An automated system processes billing and payments more precisely and on time while minimizing human error and disputes.
• Increased Security: Automated rent management systems feature advanced security measures to protect tenant information and reduce fraud.
• Operational Efficiency: By automating manual processes, you can free up your staff to concentrate on more strategic initiatives like facility maintenance, marketing, and customer service which leads to higher job satisfaction, more productivity, and more money.
• Financial Stability: By reducing delinquencies, automated rent management solutions create a more steady and predictable cash flow.
• Enhanced Customer Experience: Today’s customers expect convenience and benefit from the accuracy of automated systems just as much as the storage operator. From automatic payment reminders and secured payment links via text to recurring payments and support for  modern payment methods, all of which greatly improve customer satisfaction.
• Scale Up Faster: As your self-storage business grows, automated systems can scale to handle more transactions, ensuring that your payment processes remain efficient when your tenant base expands.
• Detailed Reporting: Data from an automated rent management system can give you real-time insight into payment trends, tenant behavior, and financial performance. You can often create custom reports tailored to your facility so you can make informed decisions and retain stakeholders.

What Is Dynamic Pricing And Why Should I Consider It?

Dynamic pricing is a crucial part of a well-executed facility management strategy in today’s rapidly evolving and competitive landscape. Commonly used in industries like hotels, airlines, and car rentals to adjust their rates in real-time based on demand, self-storage facilities are also finding success using this strategy to maximize income and occupancy.

There are a couple of ways to think about dynamic pricing:

1. Facility Level Dynamic Pricing
This type of dynamic pricing involves automatically raising rates during busier periods or when your facility is close to being fully occupied and decreasing rates during slower times. It’s an automated method of boosting revenue, regardless of the time of year or economic impact.

2. Unit Level Dynamic Pricing
Unit-level dynamic pricing considers the unique characteristics of each unit, such as whether it’s drive-up or climate-controlled, equipped with a smart lock, located on the first floor or the third floor, or if one size is widely available while another is fully occupied. Through real-time data analysis, you can ensure each unit is optimally priced and every transaction is the most profitable. 

How Can I Benefit from a Dynamic Pricing Strategy at My Storage Facilities?

We’re glad you asked, let’s jump right in:

• Maximize Revenue: Making rate adjustments in response to competitor pricing, demand, unit availability, and market trends guarantees that you are charging the best possible price for each storage unit. This tactic aids in maximizing profits during your busiest periods while attracting and retaining customers during the slower ones.
• Informed Business Decisions: To determine the best pricing strategy, dynamic pricing leverages sophisticated algorithms and data analysis. With this data-driven approach, there’s no need for guesswork, as impactful insights into customer behavior and market trends are obtained.
• Competitive Advantage: You can quickly adapt to fluctuations in local demand and competitor pricing with a dynamic pricing strategy. This flexibility helps efficiently attract and retain tenants by keeping your rates competitive. 
• Tenant Segmentation: With dynamic pricing, different customers can each have customized rates. For instance, tenants who rent long-term might receive a reduced rate, whereas short-term renters might incur a premium. 
• Higher Occupancy Rates: Reducing rates during times when demand is slower, facilities can fill vacant units much faster. Overall, higher occupancy rates can contribute to better financial performance and improved customer perception. Not to be mistaken with being 100% occupied for an extended period… but that’s a topic for another day!

The Power of Bringing These Two Strategies Together on a Single Platform

Meet Tenant Inc.'s Automated Rent Management System, powered by Hummingbird

With our Automated Rent Management System, Tenant Inc. has raised the bar for automated pricing. This system is designed to maximize revenue and reduce labor costs by taking the guesswork out of rent adjustments. Here’s how it works:

1. Automatic Rate Adjustments

Facility managers can create rent plans that automatically adjust rates based on preset rules. This means rent increases happen on schedule without the manual effort, keeping your facility’s pricing competitive and up-to-date.

2. Included in Hummingbird Property Management Software

This feature is built-in to Hummingbird property management software, ensuring all rate adjustments happen seamlessly and on time. It saves you from manual calculations and scheduling so you can focus on other important tasks.

3. User-Friendly and Secure

This tool is easy to use, allowing any team member to manage it effortlessly. Plus, with robust security settings, you can control who has access to adjust rental rates, ensuring your facility’s operations remain secure.

Incorporating these strategies into your self-storage operations isn’t just a smart move—it’s essential for staying competitive. You can ensure your facility runs effortlessly, maximizes profits, and offers an exceptional experience for tenants. Embrace the future of property management and simplify your rate adjustments today.

HEAR WHAT CUSTOMERS HAVE TO SAY ABOUT MAKING THE SWITCH TO THE MOST INNOVATIVE, END-TO-END SELF STORAGE PLATFORM IN THE INDUSTRY!