As Sir Francis Bacon said, “Knowledge is power.” The same rule can apply to self-storage operators. The more you know about tenants, the easier it is to deliver better experiences that lead to higher satisfaction and loyalty. And that means higher revenue. So, how do self-storage operators learn more about their tenants? The answer is simple: Data.

Thanks to data, learning about tenants is easier than ever. Data is now at the heart of modern self-storage operations, with trends like dynamic pricing strategies and predictive analytics improving insights. Collecting, owning, and assessing your facility’s data can give you the edge you need in a competitive market. We’ll explain how.

The Growing Role of Data in Self-Storage

Across industries, data-driven decision-making is becoming the standard for success, and self-storage is no exception. In the past, many operators relied on intuition, historical trends, or basic record-keeping to run their facilities. Today, advanced digital tools and software solutions provide real-time data-transforming operations.

Self-storage facility owners can now leverage data to track key metrics such as occupancy trends to gain insights into peak times and revenue performance. They can also understand how pricing strategies influence income and tenant behavior to discover customer preferences, payment habits, and service expectations. Solutions such as Tenant Inc.’s Hummingbird property management software (PMS) make collecting and analyzing data easy in one place.

Data-Driven Trends In Self-Storage

The integration of data analytics has unlocked several trends that present exciting opportunities for operators.

Dynamic or Value Pricing

Value pricing allows self-storage operators to optimize revenue by adjusting rates based on real-time occupancy, demand, and local competition. 

How can you use this data to earn more? One example is an operator who sees a spike in demand for climate-controlled units during the summer months. Using this data, they can adjust pricing, ramp up marketing, or reallocate resources to maximize revenue. 

Predictive Analytics

Predictive analytics helps operators make proactive decisions by analyzing historical and real-time data to forecast trends.

How Operators Can Use It:

• Anticipating Seasonal Demand: For example, a facility in a college town can use predictive analytics to identify when student move-in and move-out periods typically occur. With this data, the operator can boost marketing efforts targeting students and families in April and August, ensuring higher occupancy during these peak times.
• Forecasting Retention Rates: If an operator notices that tenants who have rented for over a year are more likely to stay long-term, they can use predictive analytics to design targeted loyalty programs or special discounts to encourage these long-term renters to renew their leases.
• Integrated Marketing Campaigns: These marketing strategies combine tenant data with advanced marketing tools, enabling operators to create personalized campaigns. Insights into customer demographics and behaviors can lead to promotions that drive higher engagement and conversion rates. Tenant Inc. offers tailored digital marketing services to guide facility owners who want to use data to increase occupancy.

IoT Integration for Remote Monitoring

The Internet of Things (IoT) simplifies self-storage by allowing operators to monitor and manage their facilities remotely through connected devices. Modern smart technologies like AI-enabled cameras, smart locks, and environmental controls for temperature and humidity make managing a self-storage facility more efficient and cost-effective.

For example, a facility equipped with IoT-enabled smart locks can allow tenants to access their units via a mobile app, enhancing convenience and security. Additionally, unit sensors can detect temperature fluctuations or unauthorized access, alerting the operator in real-time. 

This technology streamlines operations and provides tenants with peace of mind. For operators, IoT tools reduce the need for on-site staff while offering actionable data, such as usage patterns and maintenance needs, ensuring smooth operations and enhanced customer satisfaction. By managing tasks like automated payments, tenant communication, and unit access through a central hub, the Hummingbird PMS system empowers storage operators with high control and oversight.

Mobile Applications

Self-storage facilities are embracing the growing reliance on mobile apps, which offer tenants the convenience of managing their storage units on the go. With these apps, tenants can easily handle payments, access important facility information, and stay up-to-date. Features like push notifications and alerts ensure tenants are informed about promotions, maintenance updates, and other announcements, making communication seamless and efficient.

Why Data is Useful for Smaller Self-Storage Operators

While large real estate investment trusts (REITs) have benefited from cutting-edge tools, smaller operators can now access affordable solutions that level the playing field. Data can revolutionize their approach in several ways, potentially leading to significant cost savings and increased revenue.

Staying competitive means keeping an eye on local market trends to outsmart bigger players. Smaller operators can cut costs by identifying and fixing inefficiencies in their facilities. For example, they can maximize revenue by turning unused or underutilized storage units into profitable spaces. Additionally, reviewing operational expenses can help pinpoint unnecessary costs, like overstaffing during slow periods or paying for services that don’t provide value. Using data, you can keep tenants happy with simple tools like payment reminders and special offers just for them.

Learning tenant insights like preferences and payment habits allows operators to craft personalized experiences and improve overall tenant satisfaction, fostering a stronger connection with their customer base.

Getting Started with Data

To begin effectively leveraging data, operators should define their goals. Set clear objectives, such as boosting revenue, improving tenant satisfaction, or maximizing space usage. Choose the right tools by investing in software that meets your facility’s needs. Look for features like real-time analytics and tenant tracking–both features available from Tenant Inc. Train your team to interpret data and implement data-driven strategies. Regularly review performance metrics and refine your approach for continuous improvement.

The Future is Data-Driven

As the self-storage industry grows, data will remain a driving force for innovation. Operators who embrace this shift and invest in self-storage data tools will enjoy better tenant experiences, increased efficiency, and higher profitability. 

At Tenant Inc., we’re committed to helping self-storage operators harness the power of data. We design software solutions to unlock your facility’s full potential, ensuring you stay ahead in this data-driven era.

Ready to learn how to use data to get ahead of your competition?  Schedule your 1:1 demo today!