Do you have a defined process for how to handle reservations?
Self storage reservations are a helpful way to keep leads in your ecosystem even if they aren’t ready to rent just yet. Navigating the use of reservations can be tricky, though. After all, one of the major challenges of self storage unit management is knowing when existing tenants are going to move out, to begin with.
So, how do you know when you’ll have units available? What do you do with a reservation in the meantime?
Before we start, let’s quickly define self storage reservations.
With a self storage reservation, a lead isn’t quite ready to move into a storage unit just yet. Depending on your own self storage facility’s policies, the reservation could be made for any given point—a week out, two weeks, a month even. It really just depends on the rules set out for your business.
Most self storage software can handle reservations, but not all owners and operators make use of the functionality.
Having a lead reserve a unit affords several unique opportunities for self storage. It also helps you fill units that you know will be vacated in advance.
Let’s talk about some of the ways you can navigate the use of self storage rentals.
Before you can even accept a self storage reservation, you need to have an empty unit.
We’re seeing a period of unprecedented occupancy across the self storage industry.
Even with the rising number of self storage facilities popping up in the last ten or more years and with big money moving in, we’re still seeing average occupancy in the realm of 94% across the nation, according to the Self Storage Almanac.
Across the United States, people are just full.
If that’s the case, how do you even find available units for long enough to accept reservations?
Many self storage facilities have clauses in their rental agreements about move-out notice. These commonly range anywhere from ten to thirty days’ notice and—more importantly—are notoriously hard to enforce.
It’s not uncommon for tenants to move out and not even give notice.
This probably happens for a number of reasons. Like most things that our customers do, one of the reasons is most likely just ignorance and forgetfulness.
So how can you help combat this so that we can plan ahead for unit vacancies?
With occupancy at a high point right now, it’s important to remember that 100% occupancy may not be the best way to get the most return out of your self storage business. Don’t be afraid of move-outs being on the mind if you’re seeing above 90% occupancy; you can always move someone else in at a higher rate!
There are three main follow-up stages when you’ve accepted a reservation:
Depending on how your self storage software works, you may be able to automate step one. If you can’t, you can at least make it easier by setting up templates in your software or other communications platforms to streamline the process as much as possible.
Step two will vary depending on how far out the self storage reservation is for.
Is it a week or less? Well, you probably don’t need to worry too much about them forgetting or changing their minds. Still, it doesn’t hurt to set something up in your self storage software to send some automated emails or texts.
These messages can be as simple as a reminder or “We can’t wait to see you!”, or as complicated as information about your facility and what to expect.
Once it’s time for move-in, you should begin the process of notifying the customer and sending need-to-know information at proper intervals to prepare them for the day.
This information should probably include your address, their unit number, instructions for their arrival, and so on. Make sure not to overwhelm them, though!
In a world where you constantly have vacant units of virtually every size, it may not be a big deal if someone dips out on a self storage unit reservation.
But what about in today’s climate?
When you’re seeing occupancy in the 90%+ range, it’s highly likely that you have entire unit sizes that are almost always fully occupied.
You don’t want to let a unit go unoccupied for a week—or more—and turn away other customers just for the reservation to be canceled.
Whether or not you should charge a deposit for self storage reservations is entirely up to you, your occupancy, your market, and your goals. If you’re accepting reservations but seeing cancellations, it may be time to consider requiring deposits. If you’re not having issues with cancellations, then you may benefit more from going deposit-free.
So, are you accepting self storage reservations? Does your self storage software enable you to manage them properly?
While many operators are sitting at historic highs in occupancy right now, it’s always best to be prepared for the future. With that in mind, it may be a good idea to start coming up with a self storage reservations policy now if you don’t already have one in place.
It will save you headaches down the road!
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