(This post has been updated for 2025)
Does your self storage software offer online rentals? Reservations only? Both?
And where should you be focused?
What might work for one operator might not work for another, but if you're looking for some direction, we're here to help!
In this blog, we'll discuss the difference between self storage rentals and reservations, the benefits and pitfalls, and how you can decide what's best for your facility.
Continue reading to get some advice on what we're seeing in the self storage industry!
Although some operators use these two terms interchangeably, there is a key difference. Given the names, you can probably guess what they are.
Similar to reserving a table at a restaurant, reservations are made in advance and without payment. Before the tenant moves in and pays for the storage unit, they've reserved the unit so they can move in on a particular date. Reservations allow you to hold the storage unit before a tenant moves in, giving you the chance to accept or decline the reservation.
On the other hand, a rental is when the customer has input their information and already paid for their storage unit.
This doesn't necessarily mean that the rental process is complete! You may still require a customer to come in person to sign a lease and present their ID.
However, some software does allow you to provide electronic lease signing and ID scans - completing the rental process fully online. This is often referred to as an 'online move-in'.
If this process is completed, the storage unit is now rented and occupied, and the customer simply has to access their storage unit when they're ready.
Now, self storage rentals probably sound a lot faster and easier than reservations, so why would you ever opt to make use of the reservation feature - which keeps you from immediately renting out a unit to another customer - instead of just waiting on a rental?
Whether your occupancy is high or low, there are several reasons why an operator may choose to offer reservations. Let's take a look at some ways that operators use reservations in their self storage software!
Although direct rentals offer faster occupancy and less work, there are several reasons why you may want to offer self storage reservations in addition to or instead of rentals.
These reasons might include:
If you have an opening date set for your brand-new facility, it's a good idea to get your website online as soon as possible to start building authority on the web and get your name out there.
Once your website is up and running, you can offer reservations ahead of time to kickstart the business. By allowing customers to reserve their storage units before you open, you're already offsetting some of the costs of opening a new facility.
And in the event opening day gets pushed back, your customer can simply cancel their reservation if needed. This is just one way your self storage software's reservation functions are useful for both brand new facilities and established facilities.
If you already have an established self storage facility in a healthy market, there's still use for self storage reservations.
Some operators prefer to meet their customers in person ahead of lease signing to personally vet them or simply get to know them and build a customer relationship.
Other operators may have ex-tenants that are on a no-rent list due to consistent delinquency, property damage, and so on. In this case, you may prefer reservations so you have the chance to vet the customer before renting to them.
This gives you and your manager a chance to review the reservation details, identifying the customer and determining whether this is someone you want renting a storage unit.
The way this process looks on the self storage software side is simple:
Though the self storage industry is often resilient in all kinds of economies, there's always a chance that your market isn't so straightforward.
You could be in an area with less demand for self storage, or you might be facing lots of competition.
When the market is tough, operators may choose to offer reservations as a way to increase their occupancy at any given chance. Even though a self storage reservation does not technically mean a secured rental, if you reach out to the customer within a day of the reservation, you could turn it into a rental.
With reservations, operators need to act quickly to capture the customer before they find a different facility or simply choose not to rent at all. The best operators convert around 50-60% of reservations into rentals.
However, if your manager isn't following up quickly, that percentage will be much lower.
There are a few other ways operators commonly use self storage reservations depending on their motivations.
First, some operators simply want to secure a future rental via reservations rather than worry about finding an immediate rental sooner. This provides peace of mind for operators that are less concerned with squeezing out every penny.
Other operators may find reservations to be helpful to their customers and community members. If they're in a market where it's harder for customers to find the right storage unit, or you have a customer that isn't certain when they'll need a storage unit, a reservation can be helpful.
Last but not least, if an operator is using a third-party company to generate leads, then reservations will most likely be used instead of rentals.
There are a variety of business models that these kinds of companies use, from bid models to straightforward aggregators, however, they're often less cost-effective than refining your own online presence. That said, in these cases, there is often a reservation made on the customer's behalf rather than a completed rental.
As you can see, there are several reasons why an operator may choose to offer self storage reservations.
On the other side of the aisle, there are plenty of reasons as to why an operator might choose self storage rentals instead.
Direct online rentals provide convenience for both the customer and the operator. When a customer rents and pays for a storage unit online, they have peace of mind knowing their storage is secured, while you have peace of mind knowing you've increased occupancy.
If you want to provide even more convenience for your customers, you can offer online move-ins (as long as your software allows for it).
This way, customers can do it all from the comfort of their own homes on their own time, and managers won't have to worry about meeting a customer on a whim.
This is especially important for a facility that is remotely operated or has very limited opening hours. If your office is only open from 9 am to 4 pm on weekdays, customers may not have the time to visit in person, making online rentals ideal for both parties.
Online move-ins also make more sense for long-distance customers. If you have a customer moving from out of state, they won't be able to visit in person to provide an ID and sign a lease ahead of time.
They need their storage unit rented and ready when they arrive.
When you're choosing whether to offer self storage rentals or reservations, it's important to consider the convenience of yourself and your customers.
You should think about who your customers are, what your market looks like, and how much time you have to determine whether you'd get any use out of reservations, or if rentals are simply faster and easier for your facility and customers.
Either way, this decision is entirely up to you and what's best for your facility and market!
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At StoragePug, we build self storage websites that make it easy for new customers to find you and easy for them to rent from you.
