emote sites are the talk of the industry right now, but are they the wave of the future? Some companies have already gone fully remote or are using a remote hybrid. However, the self-storage industry is historically slow to accept change, and some within the industry are resistant.
Will DeBord, director of product-Nokē at Janus International in Temple, Ga., says two projects in West Virginia that the company partnered with RPG for remote management are doing great. “I recently visited these sites and loved hearing the customers praise the technology and their experience at these remotely managed properties,” says DeBord. “The reality is, you can provide a truly fantastic customer experience without having anyone on site if you leverage the right technology to enable your customers to have a seamless rental and entry experience.”
Of course, with any decision for management of your property, there are key questions you should answer before you decide if a remote site is best for your self-storage facilities.
“Let’s start by clarifying the concept of virtual management, a relatively recent introduction to the self-storage industry that is distinct from the often confused ‘unattended’ facility operation model,” says DeBord. “In an unattended model, the absence of on-site staff is notable. Visitors are directed by signage to call a designated phone number for service, which may lead to a call center or, more commonly, the owner or maintenance person.”
DeBord explains that the “remote” or “virtual management” model is also “lacking on-site staff, but it incorporates a centralized customer service hub accessible through various means.” He says customers can automatically connect with a remote manager or customer service person who can assist. Customers also use a variety of tech-forward options, including completing their rental online and smartphone apps for access. On the management side, most functions, including monitoring security and overlocking, are also performed off site.
“For smaller sites with less than 200 units, remote technology proves incredibly effective,” says Sarah Beth Johnson, director of sales for Universal Storage Group (USG) in Atlanta, Ga. “It helps streamline operations, particularly when there might be staffing shortages or limitations.” Johnson further explains that with larger sites, typically more than 60,000 square feet, “the focus shifts towards the significance of managerial expertise. In this context, the cost of payroll as a percentage of revenue is relatively low. This indicates that investing in a top-notch manager who can optimize various aspects of the business, from customer service to facility cleanliness, becomes crucial.”
Carol Mixon, owner of SkilCheck Services in Marana, Ariz., agrees. She says the first time she had a remote site was in 1989, when a 300-unit facility was only one mile away from a 700-unit facility she managed. While technology has advanced since that time, Mixon concurs that on-site managers are still useful for bigger facilities. “For my location in the San Francisco Bay area with 2,000 spaces, there was no possible way for it to be remote managed. For my locations in rural California, with less than 500 units, it works.”
“We have a lot of clients come to us with this question,” says Mixon. “The obvious benefit is the decrease to staff cost.” Another benefit to having a remote site is providing 24-hour rentals and access. “I was on a training session with a call center agent late in the evening, and a customer needed a storage space that night because she’d been kicked out of her boyfriend’s home. She was literally desperate to put everything in her parked car somewhere safe so she could find a place to stay for the night. This location was a remote, 24-hour rental location, and she was beyond thankful. She didn’t know what she was going to do. If she had gone and gotten a room, she was afraid someone would have stolen everything from her car.”
Bob Copper, owner of Self Storage 101 and Copper Storage Management in Birmingham, Ala., says his companies now only own/operate remote sites. In addition to lower payroll costs, he points out that there is less turnover in the management positions, fewer manager-instigated customer service issues, no store-level theft, and a higher percentage of tenant insurance penetration.
According to Copper, two of the main challenges to remote management is losing out on retail sales and occasional customer service issues. “Usually Bluetooth locks not working,” he says.
Stacie Maxwell, vice president of marketing and training for Universal Storage Group, says there are key challenges to operating a remote site:
- Technology costs – “Investing in the right technology, infrastructure, and training for staff to use these tools is imperative,” Maxwell says, adding that costs for maintaining and upgrading technology and technological limitations should be considered.
- Customer perception and service – “Customers may have reservations about remote services impacting the quality of their experience,” says Maxwell. Convincing them of the reliability and effectiveness of remote operations is crucial for maintaining their trust and satisfaction.
- Sacrificing boots on the ground marketing – Maxwell explains that while 42 percent of the company’s rentals originated online in 2022, a substantial 54 percent found their facilities through drive-bys, repeat visits, referrals, events, and other various organic marketing efforts. That same year, 7,000 people visited USG facilities through events held on the property. “Without an on-site manager to showcase your facility and engage in direct marketing, you’ll relinquish access to a considerable portion of potential tenants.”
DeBord says there are several key elements you will need to run a remote site:
- A robust, user-friendly mobile-responsive website featuring online rental capabilities and options for click-to-live chat or click-to-call customer service.
- An on-site rental center equipped with a kiosk or touchscreen, complemented by two-way audio or video functionalities, enabling customers to seek assistance or ask questions.
- Online and on-site unit size guides and videos, along with displayed sample units
- Implementation of electronic leases (as well as ability to pay online)
Mixon contends there may be facilities in high-crime areas that simply cannot be managed remotely. “With no staff on site, even if there are cameras, gates, fences, and alarms, there will still be problems and crooks who know how to work the system. The strangeness that is self-storage, from customers using the hallways as bathrooms, tenants living in units … these situations need a manager to take control and fix the situation sooner rather than later, not days after the incident occurs,” says Mixon.
However, Copper notes that most crime occurs after hours when the facility is not staffed anyway. “There’s really no difference in how it is managed,” he says. “You must have plenty of cameras and good lighting, as well as other security features. On-site managers shouldn’t be expected to directly respond to criminal activity anyway, other than call the police, and remote monitoring systems can do that.”
For many facilities, our experts agree that fully remote sites or hybrid remote sites are the wave of the future for the self-storage industry. No matter the age demographic, more people are using online services and became even more familiar with such services during the pandemic.
“This is what the customer demands,” says DeBord, “whether it’s their bank, grocery store, or their self-storage facility. As self-storage operators and technology providers, it is our job to give the customers what they want.”