By Carol Mixon

irst, I must admit that I am biased toward having managers at a storage property. However, as an owner/operator, I totally understand why some developers and storage owners are choosing to operate their storage property remotely to save on the high cost of employees. Most of my storage properties that have been over 700 units have been in metropolitan areas. The large storage properties (one in the San Francisco Bay Area had 2,000 units) that I have developed and/or managed needed managers at the location based on the neighborhood and the sheer size of the property. Remote management of self-storage facilities can offer several benefits, but it also presents some challenges. So, I thought I would give you an optimistic look at remote management and some obstacles that we face when having a remotely operated storage property.

Technology has made a huge difference in our lives in both positive and negative ways. I happen to have two children/adults still living in my house who are 20 and 21. They were considered adults when I was young. Clearly, the new norm is not to get married and fly the coop as I did when I was 18. They constantly text me (even when we are all at home), and they don’t like to actually speak with me on the phone. The one exception to their normal text-only rule is when they need money! They know I like “proof of life” and some sort of meaningful conversation. Unfortunately, if I am driving that means I must multitask and find my phone in my purse, which is typically tossed behind my seat. Now I am a danger to everyone on the road, searching behind my seat and driving one handed or putting my car in self-driving mode, which isn’t always reliable and you still must keep one hand on the steering wheel. Yes, the phone should automatically sync with the car, but it doesn’t always. Then, I must stop to fix it. The moral to this story is that not everyone likes living without human interaction, but there are people who want to have as little contact as possible. That is true with a variety of generations who rent storage, too!

During my storage career, I have strived to make the self-storage office inviting for customers to hang out and converse with the manager, offering alluring things for them to want to visit the office (i.e., free water, coffee station, good candy on the counter, and amazing employees with a “gift of gab”). Are those days gone? I hope not. However, I am a realist when it comes to improving the store’s income. My operating goal is to maximize the profitability of the storage asset. Circa 1988, my ex-husband Tom Litton was working for the Grupe Company and they had acquired a small storage property a little over a mile from one of their larger properties in Castro Valley. The newly acquired office had a 5-by-10 space, and I suggested that the manager from the other store oversee that property as well. We worked out the logistics and it worked. They did have complaints and logistic issues (the managers called it “hiccups”) about overlocks not being removed after a late payment was made, not removing vacant locks after people have rented at the main location, etc. The location had never had a break-in until it was operated remotely. That wasn’t a surprise. So, then the managers were instructed to drive the property every two hours or so at random times during their work hours, which didn’t always happen, and we did have a few move-outs because of “poor service.” Now, we have a plethora of new technology to assist in remote management!

Let’s cover some of the positive issues of operating a remote self-storage project. Many of the old timers in self-storage remember when people called the industry “mini storage.” The nomenclature now is self-storage, which seems to go well with remote property management. Young readers may be surprised to know that gas station attendants used to pump gas in your car, and we got Green Stamps, too. Did you know that New Jersey is the only state where it is illegal to pump your own gas into your car? Oregon recently released their 72-year-old ban on self-service gas stations. My assumption is that pumping your own gas is more dangerous than our customers using the storage product without any supervision.

Let’s look at some of the things that make remote storage management attractive to investors and operators.

Cost Savings – Remote management reduces the operational costs as it eliminates the need for on-site staff. You can save on salaries, benefits, and other overhead expenses if you also have an apartment on site. On a personal note, I have used an existing apartment by renting it to a police officer. They typically take their police cars home and that is a nice presence at the property. And I have a written agreement with them to pay them if they respond to an alarm when they are at the property. It is a win-win for both parties. That could be another revenue source for the property, too.

Flexibility – With remote management, you can oversee multiple facilities from a centralized location, allowing for more flexibility in managing your business. This can be especially useful for owners with multiple locations, especially if they are in fairly close proximity to each other.

Technology Integration – Remote management often involves the use of advanced technology, such as security cameras, access control systems, or Nokē Smart Entry locks, which are amazing but may be too pricey for some operators. A smart watch even allows the customer to open the otherwise secured slider door. This can enhance your remote security and help efficiency when the customer is using your storage product.

Increased Accessibility – With advancement in storage technology, you can access real-time data and monitor your facilities 24/7, enabling you to respond quickly to any issues or emergencies. You may even want to pay to have the property remotely monitored by a security company.

Scalability – Remote management makes it easier to scale your self-storage business as you can expand to new locations without the need for immediate on-site personnel.

Security Concerns – Relying on technology for security can make your facility vulnerable to cyberattacks or technical failures. If your security systems are down or compromised, it could lead to theft or other security breaches.

Lack of On-Site Presence – Without on-site staff, there may be delays in responding to customer needs, maintenance issues, or emergencies, all of which can potentially affect customer satisfaction. This may be the most critical issue for customers to get problems or issues resolved quickly.

Limited Personal Interaction – Remote management reduces the personal touch and customer interaction that can be important in the self-storage industry. Some customers prefer face-to-face interactions. This is apparent when a customer rents online and then realize that the space in not large enough, too big, is literally upstairs, etc. And many self-storage websites don’t have detailed descriptions to assist the customer with the appropriate space for their needs. Recently, I listened to a live call to a storage property; the customer rented a 10-by-30 online, but when he got to the property, it was inside a hallway. There were nothing noting that on the website, and then the manager said they weren’t allowed to refund money that was paid online. Your company policies should be fair. Otherwise, you may find lots of bad reviews online that give potential customers a poor impression of your facility.

Technical and Staff Challenges – Technology can be unreliable, and if your remote management systems or software fail, it may disrupt your operations and require costly repairs or updates. To cope with the technical challenges, employees or call center agents must have answers and solutions to ensure that the customer has a great experience. Based on my experience with training a call center and listening to recorded sales calls, here are a few common issues that we have come across so far:

“The space I rented online is too big (or too small).”

“The space is too far from the loading area. I would like one closer to the exterior door.”

“There is already a customer lock on the space; I just rented online.”

“My gate code doesn’t work.”

“I need boxes and there is no one in the office.”

“I’m stuck in the gate and can’t get out. I called the fire department; they are going to have to charge you $175 to get me out.”

“There are some people here who are sketchy. Is there anyone here at the property who could come help me?”

When discussing remote management, it is more than simply online rentals. There is technology with Bluetooth electronic smart locks. My daughter worked at National Self Storage in Marana and she loved the Nokē locking system. The good news was that people who chronically lost their keys could use their smartphone or a fob. Customers can share a temporary digital key withthe UPS driver, for example, to access their space, which can be revoked or cancelled at any time. Not only do smart locks secure the unit door, but they also monitor interior unit motion and body heat, so you’d be informed immediately if someone was breaking into a unit or living inside a unit. Because of the premium features offered by smart entry access and Bluetooth smart locks, owners and storage operators are able to work remotely, heighten the security at their facility, and charge premiums for their self-storage units.

With smart locks you eliminate the time it takes for managers to overlock, cut the customer’s lock, or give more or less gate hours. And lock checking is virtual from a portal, so the manager doesn’t have to physically be on the property to check each lock.

In the 80s, when I worked with National Self Storage, we had a new store planned in Lauderhill, Fla. The City of Lauderhill refused to allow an apartment on the property because of the zoning. We almost nixed the building of that property over the fact that we were used to having properties with a husband and wife couple. That store rented up in 88 days. In all fairness, it wasn’t simply the fact there wasn’t an apartment; there was definitely a huge pent-up demand for storage. One thing was apparent: It was easier to schedule the employees and we have a larger pool of applicants. Depending on your location and the municipality requirements, there may be restrictions or requirements for on-site personnel or security measures to which you must adhere. This can be challenging with remote management.

While remote management reduces the need for on-site staff, it requires skilled personnel to handle the technology and operations effectively, especially when answering the customer’s questions by phone or online. Finding and training such staff can be a hurdle. Remote management should include a call center to answer customers’ questions and concerns. A very important detail is to sign on with a call center provider that specializes in self-storage. Storage-specific call center providers only handle storage customers; they understand storage lingo and how to respond to and triage sales and service calls.

Some customers may be hesitant to store their belongings at a facility without on-site staff, which could affect your occupancy and the rates you can charge.

In summary, remote management of self-storage facilities offers cost savings, flexibility, and scalability, but it comes with security concerns, potential customer dissatisfaction, and technical challenges. It’s essential to carefully consider the specific needs and demands of your location based on the market needs before opting for remote management, as it may not be suitable for every self-storage facility.