By Sascha Zugar

he self-storage industry has a long history of being “old school” and a haven for the classic mom-and-pop way of running a business. However, the days of paper ledgers and manager-led personal golf cart tours have given way to a wide variety of smart and tech-forward innovations. On the surface, the pivot away from the face-to-face experience would seem to negatively affect customer service, but done well these new methods can lead to higher levels of both profitability and customer satisfaction.

“Tenant Inc. was started in 2019 by independent storage operators for storage operators and now serves over 200 self-storage operator-investors,” says Justin Paquin, Tenant Inc.’s senior director of product. “Its mission is to enable independent operators to not only compete but thrive against the REITs. A modern, cloud-based, microservice architecture platform supports innovation and delivery at a pace not normally seen in this industry.”

This progressive company was formed because other leading property management systems were denying open access to system data. Tenant commits to ensure access to data manifests through its open API, data warehouse, and BI products.

“Open access enables independent storage operators to deploy a portfolio of best-of-breed tools to help attract and convert tenants, maximize revenue, automate operations, make business decision, and offer the best tenant experience.”

An important benefit of a cloud-based system is the ability to allow operators to seamlessly receive continued new functionality. Vendors can deploy features and fixes monthly, weekly, even daily. Operators get those enhancements with no effort on their part. Innovation and feedback can be incorporated and iterated on at unforeseen speeds.

“Tenant’s open platform makes it simple for other software services to integrate with our products, offering more capability and more choice. An open platform gives operators, and other software vendors, access to the same APIs used by Tenant.”

As we are seeing as the industry evolves, the future of storage is automation, including tenant services devoid of in-person interaction. Ironically, with the right tech this can elevate the tenant experience while reduce staffing costs. Touchless rentals, mobile phone ID verification, two-step rental and payment link, and lead response automation are impressive tools toward achieving this goal.

“The future of storage is also data-based decisions,” says Paquin. “AI is democratizing the ability to extract insights from data. With Tenant, operators own their data. Tools are being built that allow operators to use AI to identify and extract actionable insights that will give their businesses an edge in competitive markets.”

In the travel and hospitality industry, the concept of dynamic pricing has been around for more than 20 years. This method of improving revenue then moved into real estate and apartments and has now become an indispensable business discipline in self-storage.

“I was privileged to lead the science behind the first revenue management implementation for the apartment industry in the late 1990s,” says Ahmet Kuyumcu, founder and CEO of Prorize, which provides AI-based pricing and revenue management technology for the self-storage industry across 24 countries on six continents. “In 2008, we conducted a proof-of-concept study with Extra Space Storage. We then partnered with another major publicly traded REIT, executing a live pilot-control study that showed a revenue increase of over four percent compared to their internal pricing system.”

More than simply lowering vacancy days for open units, data analysis can maximize revenue.

“Pricing is complex and multi-faceted in highly dynamic self-storage markets,” says Kuyumcu. “Many operators struggle to respond effectively when competitors adjust prices or demand declines. They often overreact or fail to act, missing revenue opportunities. Reacting to changing market conditions becomes a guessing game without proper data and inputs. Our system is designed to address these challenges and provide optimal pricing recommendations each day.”

Setting an optimal price for a product or service in a dynamic, time-dependent fashion is a complex and challenging prospect, ideal for the domain of artificial intelligence and machine learning (AL/ML).

“We aim to provide AI/ML-based revenue management technology for mid- to large-size operators,” says Kuyumcu. “We leverage data, science, and facts to prevent customers from overreacting to market changes. When we adjust prices, our software provides detailed explanations and related reports about why rents are changing. We offer detailed information, demand forecasts, and rent recommendations, empowering them to make informed pricing decisions. Customers can either manually approve changes or establish rules for automatic approval.”

Customer feedback, experience, and accumulated knowledge of pricing best practices in the revenue management and self-storage industries inform the developing future of this tech. Market conditions change daily; keeping one step ahead can lead to double-digit incremental revenue growth. Prorize offers quarterly executive updates to show progress and allow for fine-tuning.

Smart storage leverages connected devices, including sensors, cameras, locks, HVAC control, and more, to optimize operational efficiency and maximize the revenue of a storage facility or portfolio.

“You can’t create a smart space—storage or otherwise—with devices alone. Smart storage needs three layers to succeed,” says Tom Grant, vice president at Smart Space IoT Vantiva. “As a foundation, you need a robust connectivity infrastructure. Standard Wi-Fi won’t suffice. You need strong wireless signals in every corner of your property, with support for smart device-specific wireless connection technologies. Next, you need purposefully selected, effective point solutions that help address your business challenges and renter demands. Finally, you need a unified platform to efficiently manage these solutions, automate tasks, and derive data insights.”

Smart solutions help storage operators save money while earning new revenue. Storage operators can reduce labor costs by managing multiple sites from anywhere and performing routine security checks efficiently and remotely. They can mitigate damage from adverse events by responding to real-time alerts like water leak, pest, or unusual motion detection, keeping their insurance premiums and maintenance costs low. They can also reduce their energy costs by controlling HVAC systems for optimal efficiency.

“Renters are also willing to pay a premium for smart features, especially those that offer peace of mind that their belongings are safe in storage,” says Grant. “The Vantiva Peek is a first-of-its-kind, in-unit camera with motion, temperature, and humidity sensors. Renters can use it to ‘peek’ inside their unit from anywhere. It also sends real-time alerts and an image burst if it detects motion. Peek is only available from Vantiva’s storage provider partners, who earn revenue from retail camera sales and a share of the recurring monthly revenue from Peek app subscriptions.”

In addition to the new Peek, Vantiva offers a customizable Smart Storage Operations Management Platform that can be used to manage thousands of sites, unifying tech systems regardless of manufacturer or connection technology, with a software subscription for ongoing support.

“Vantiva knows the connected consumer,” Grant says. “We are the world’s leading provider of gateway technology. Our Smart Spaces team has a proven track record of delivering mass-scale value to industries including smart home, security, and telecommunications. We use that unique expertise to partner deeply with storage providers, helping them to launch, evolve, and scale smart spaces.”

With so many positive aspects, it is important to remember to be mindful of potential risks.

“A fully automated facility can make renters feel less secure,” says Grant. “This feeling is magnified when automation is allowed to lead to neglect—when pests roam [or] linger in traps for days, refuse collects in public spaces without proper disposal, or lights or mechanical systems fail and aren’t quickly repaired. Concrete and steel building materials create natural Wi-Fi and cellular dead zones. If your renters are alone with no ability to call or text for help in an emergency, they will feel justifiably unsafe.”

Having excellent site-wide network connectivity will help improve security, but relying on proven solutions is key. A robust smart space strategy can ensure a remotely managed facility remains clean, welcoming, and secure by monitoring public spaces for refuse, defacement, or vagrancy and deploying timely, appropriate responses.

“Our ops management platform can alert you when a system is due for service or needs repair,” says Grant. “You can even reach renters remotely in real time if they’re experiencing an issue. Even if the manager is not on site, you can signal to renters in a thousand ways that you are constantly looking out for them and their belongings.”

Storage facilities of any size can benefit from sitewide connectivity infrastructure. While a product like this might have the most value for operators with a portfolio of at least 10 sites, even a single site can earn revenue and differentiate.

“I know there are plenty of moms and pops out there who have built operations of that scale,” says Grant. “We are just as eager to partner with these entrepreneurs as we are with corporate-owned operations. Often, they’re the sector of the marketplace with both the vision and the nimbleness to innovate.”

TENANT INC.
Tenant’s Mariposa website and “Good/Better/Best pricing” is class leading in converting tenants and moving them up market to higher revenue units. In August, look for Tenant Warehouse, a data warehouse that allows operators to use BI tools like PowerBI or tableau to create rich reporting customized to their unique needs. Tenant Warehouse will also include dozens of pre-built graphs and reports for storage KPIs. Charm allows operators to take and make calls directly within Hummingbird. By bringing calls into the PMS, call history and incoming call recordings are captured in tenant communication history just like text messages and emails. Operators never miss a lead because records are automatically created for any incoming calls not associated with an existing tenant.

PRORIZE
Prorize will focus on enhancements in predicting customer demand by micro-segments, optimizing the frequency and amount of rent increases based on customer churn and market conditions, optimizing segments and displays for tiered pricing, measuring promotion effectiveness, responding to competitive price changes, managing marketing spend efficiently, estimating budgets, and enhancing the customer experience for both mobile apps and desktop versions.

VANTIVA
Vantiva’s Peek will offer self-storage operators the ability to instantly transform their rental spaces into smart units. Installed in seconds via a powerful magnet that requires no external power or wiring, The Peek camera gives renters what they really want: 24/7 visual verification that their belongings are safe, backed by real-time alerts for adverse events. Using deep market and product development expertise, the new, low-cost, all-in-one, in-unit monitoring solution is easy for facilities to offer, earning them recurring subscription revenue while differentiating them as a smart, safe facility.