How Independent Operators Compete with REITs in Self-Storage: Relationship-Driven Strategies for Long-Term Success

How does one compete with REITs in the self-storage industry? Independent operators often face steep challenges. With large Real Estate Investment Trusts (REITs) offering lower prices and aggressive marketing tactics dominating the market, smaller businesses can feel stuck in a race to the bottom. But here’s the good news: You don’t need to compete solely on price to win. The key to long-term success lies in fostering relational connections rather than approaching every interaction as transactional.

By focusing on the needs and experiences of your tenants, enhancing the appeal of your facility, and crafting a cohesive, customer-centric brand, you can effectively convert leads into loyal, long-term tenants. Read on to discover how you can set your self-storage business apart by connecting with your tenants on a deeper level.

Storelocal reports that self-storage businesses can experience up to an 84% increase in rentals by focusing on improving customer relationships and retention strategies. This growth highlights the importance of prioritizing tenant experience, building strong connections, and fostering long-term loyalty.

Understanding the Tenant’s Journey

People don’t look for self-storage solutions on a whim. When competing with REITs in self-storage, it’s important to identity storage needs that often arise during significant life changes such as moving, downsizing, addressing family milestones, or managing unexpected events. These situations are usually emotionally and logistically challenging for the tenant.

Recognizing and addressing this reality can differentiate your facility from competitors. By prioritizing empathy and personalized service, you can position your business as a trusted partner. For instance:

• Train your staff to approach new prospects with active listening skills and a friendly demeanor. A simple, “What brings you to us today?” can open the doors for a more meaningful and supportive conversation.
• Offer flexible storage terms or solutions tailored to unique situations, such as short-term rentals for tenants in transition.
• Provide additional guidance or tools, such as storage tips or moving checklists, to alleviate stress for your tenants.

By recognizing and empathizing with the personal journeys of your tenants, you’ll build trust and create stronger relationships.

The Importance of Curb Appeal

First impressions matter. Your facility’s exterior and overall presentation play a critical role in establishing trust and encouraging tenants to choose you over the competition. An attractive, well-maintained property doesn’t just catch the eye; it also conveys professionalism, care, and safety.

Here’s how you can create exceptional curb appeal:

• Keep It Clean: To maintain an appealing and inviting outdoor environment, it’s important to implement regular upkeep of your grounds. This includes mowing the grass, planting flowers to enhance visual interest, sweeping sidewalks and walkways to remove debris, and ensuring that the exterior surfaces remain free of graffiti. Regular maintenance not only improves aesthetics but also contributes to a safer and more welcoming atmosphere. Areas are clear of debris and well-lit at night. Broken fixtures like pathway lights or signs should be replaced immediately to instill confidence in your tenants.
• Upgrade Landscaping: To enhance the aesthetic appeal of the facility, consider upgrading the landscaping by introducing greenery. Incorporating plants and trees can soften the otherwise industrial atmosphere, making the environment more inviting. Additionally, well-planned landscaping offers practical benefits, such as providing natural shade and creating spaces that facilitate pest control measures.
• Showcase Clear Signage: To ensure effective communication with passersby, it is essential to showcase clear signage. Signs should be easily visible and legible from the road to convey your message effectively. Additionally, maintaining signage in good condition is vital; faded or damaged signs can create a negative impression of neglect and may deter potential customers.

By addressing these elements, you’ll create an inviting environment that welcomes tenants and reassures them that their belongings are in good hands.

Building Relationships Through Website and Branding

Your website could be the first interaction potential tenants have with your business, so make it count. A professional, easy-to-navigate site isn’t just about aesthetics; it establishes trust and informs tenants about your services. Here are some key ways to improve your online presence:

• User-Friendly Design: To create an effective website, it’s essential to prioritize user-friendly design. Ensure that your site is mobile-responsive, allowing users to access it easily on various devices, as this is the primary way Google ranks your site. Focus on intuitive navigation to enhance the overall user experience. Incorporate clear calls to action, such as “Reserve Now” or “Get a Free Quote.” All of these can significantly guide visitors toward taking desired actions.
• Showcase Testimonials: If you have long-term tenants, consider reaching out to them for positive reviews that can be featured on your website. By integrating reviews from platforms like Yelp or Google, you can effectively highlight testimonials from current tenants. This not only enhances your credibility but also provides reassurance to potential customers regarding the quality of your services.
• Offer Virtual Tours: Self-storage operators have the opportunity to enhance their online presence and increase conversion rates by offering virtual tours. Utilizing software tools like Matterport or Cloudpano, businesses can create immersive 360-degree walk-through tours of their facilities. These virtual tours highlight the cleanliness and safety of the storage environment, instilling confidence in potential tenants that their belongings will be stored securely and reducing the apprehension often associated with renting storage space.

Remember, branding goes beyond your website. Every interaction tenants have with your brand contributes to their overall impression, whether online or in person. Maintain consistency in your messaging, visuals, and customer service.

The Human Element: Hiring and Retaining the Right Staff

The success of a self-storage business extends beyond just the quality of facilities and pricing structures; it fundamentally revolves around the people involved. The staff serves as the public representation of the company and plays a significant role in influencing tenant satisfaction. Therefore, it’s essential to focus on the hiring and retention of employees who align with the core values of the organization. This alignment is crucial for fostering a positive customer experience and, ultimately, for the overall success of the business

Here’s how to ensure you’re staffing for success:

1. Hire for Attitude, Train for Skill: When recruiting new team members, prioritize hiring individuals based on their attitude rather than solely their skills. Seek candidates who naturally connect with others and exemplify a strong customer-first mindset. This approach can enhance your team’s overall dynamic and ensure a commitment to excellent customer service, while skills can be developed through training.
2. Provide Comprehensive Training: It is essential to provide thorough training for your team. Equipping them with the necessary tools and knowledge will enable them to represent your brand effectively while assisting tenants with empathy and efficiency.
3. Encourage Employee Feedback: Engaged and motivated employees tend to deliver superior service. To foster this engagement, it’s beneficial to schedule regular check-ins aimed at gathering insights and feedback from your team. This practice not only enhances communication but also empowers employees to contribute to the organization’s success.

When your tenants feel genuinely cared for by approachable and knowledgeable staff, they’re more likely to become loyal, repeat customers.

Leveraging Technology with Property Management Software

Property Management Software technology offers a crucial advantage for businesses in the competitive self-storage market. Unfortunately, many in the industry do not fully leverage this valuable tool. Contemporary property management systems do more than just manage leads; they also improve tenant relationships and optimize operational efficiency. By utilizing property management software effectively, self-storage facilities can enhance customer satisfaction and streamline their business processes.

With the right property management tools in place, you can:

• Automate communications such as payment reminders, reservation confirmations, and promotional offers.

• Manage and track leads from inquiry through rental, improving conversion rates.

• Centralize tenant communications across multiple channels including phone, email, text, and online chat.

• Access real-time inventory, pricing, and availability for faster rentals and service updates.

• Track tenant preferences and rental history to deliver personalized service and targeted marketing campaigns.

• Automate billing, invoicing, and payment collection to streamline financial operations.

An example of how property management software enhances tenant experience is through its ability to analyze renter behavior and preferences. For instance, if a tenant consistently opts for smaller units, the software can generate alerts for property management staff, prompting them to reach out with exclusive deals or personalized promotions that align with the tenant’s needs. This targeted approach not only demonstrates attentiveness to individual tenant preferences but also fosters a deeper sense of connection and loyalty between the tenant and the property management team. By offering tailored solutions, property management companies can create a more satisfying living experience, encouraging tenants to feel valued and understood, ultimately leading to improved tenant retention and satisfaction.

Customer Relationship Management

​Property Management Software (PMS) with integrated Customer Relationship Management (CRM) capabilities is revolutionizing the self-storage industry by enhancing tenant engagement and operational efficiency. XPS Solutions, a leading call center and remote management provider, has established integrations with several PMS platforms that offer CRM features, enabling seamless communication and personalized tenant experiences.

Here are several examples of our many PMS platforms integrated with XPS solutions that offer CRM features:​

1. Self Storage Manager (SSM Cloud): This platform provides comprehensive CRM functionalities, including automated communications, tenant preference tracking, and centralized customer interactions. The integration with XPS Solutions allows for real-time access to tenant details, inventory, pricing, and promotions, facilitating efficient rental processes and personalized tenant engagement. ​

2. SiteLink: SiteLink’s CRM capabilities encompass lead management, customer communication tracking, and automated reminders. Through its integration with XPS Solutions, operators can leverage live chat, automated payments, and detailed account histories to enhance tenant relationships and streamline operations. ​

3. Hummingbird by Tenant Inc.: Hummingbird offers robust CRM features, including lead tracking, customer communication, and rental process management. The API integration with XPS Solutions enables call center representatives to access inventory, pricing, and tenant information, allowing them to guide leads through the rental process and manage customer interactions effectively. ​

4. Cubby: Cubby’s CRM functionalities include customer interaction tracking, automated communications, and personalized marketing. The integration with XPS Solutions provides agents with real-time access to inventory and pricing, enabling them to close leads efficiently and deliver exceptional customer service throughout the renter journey.

By leveraging these integrated PMS and CRM solutions, self-storage operators can automate communications, personalize tenant experiences, and centralize customer interactions across multiple channels. This strategic approach not only enhances customer satisfaction but also drives long-term rentals and operational efficiency.​ For self-storage owners and operators, embracing these integrated technologies is essential to remain competitive.

A Strategy for Sustainable Success

Competing with REITs and thriving during economic uncertainty requires more than just lowering prices. It demands a shift from transactional tactics to creating genuine tenant relationships. By prioritizing empathy, investing in curb appeal, building a strong brand, hiring the right people, and leveraging technology, you can set your independent self-storage facility apart.

The relationships you build with tenants will not only drive conversions but also cultivate long-term loyalty. Reach out and start implementing these strategic shifts to give your business the competitive edge it needs to succeed. Your next loyal tenant could be just one relationship away.

The relationships you build with tenants not only drive conversions but also foster long-term loyalty. While you focus on creating exceptional in-house tenant experiences, XPS Solutions ensures every lead receives the attention they deserve— with call coverage, seamless remote management, and expert tenant support experience. Our services help you maintain a customer-centric approach that turns inquiries into move-ins and tenants into long-term customers. Let’s work together to elevate your facility’s success. Contact XPS Solutions today to see how we can support your business!

If you want to find more informative content to enhance tenant relationships, check out Storelocal’s blog here.