In the self-storage business, your tenants are your greatest asset. Tenants help to put your business on autopilot. Not that a smart owner would coast, but rather that a smart owner would focus on other aspects of the business if occupancy were at 88-90% without tenant issues. There are plenty of other things to worry about.
Many tenants are easy. They set up payments on autopay, their cards never decline, and they keep their insurance documents updated (if required). There are other tenants who require more effort and focus from savvy owners. Retaining tenants should always be the priority, as it is less expensive to retain than to find new tenants.
Let’s discuss ways to retain tenants using customer appreciation, with some bonus information on finding the best tenants.
- Start with thank-you notes to every tenant. Order a box of thank-you notes on Amazon. Write one note to every tenant. Thank them for being your customer. A handwritten thank you is almost a thing of the past, so start this task today, and your tenants will feel valued. Each new tenant gets a handwritten thank you note going forward. This is an easy task to communicate that each tenant is known and valued.
- Use facial recognition to learn the names of tenants. If the security system uses facial recognition, use it to the business’s advantage and know tenant names. If this feature is not currently available, use their names whenever possible. Make it a habit to look up their account once they come into the office and call them by name.
- Randomly select tenants to receive a surprise discount. Select specific months of the year and offer a surprise, random discount to tenants. The discount can be small, but highlight it on the tenant’s monthly statement and thank them for their loyal and prompt payment. This can be repeated quarterly or at any time interval the business can handle from a profit standpoint.
- Offer a customer appreciation event at the self-storage facility. This can be a day-long come-and-go event to show appreciation for customers. It may even attract new tenants as well. Think creatively about the best way to plan and host it. Invite a food truck, offer a bounce house for kids, and provide celebratory food for tenants. Invitations must be intentional and communicated directly to tenants.
- Promote your tenants. Many self-storage tenants are business owners. Learn more about them and what they do. Share that information on social media and in genuine ways that promote the business and the owner.
- Offer a discount for rent paid in full for the year. Many tenants will appreciate the opportunity to save some money. Think of subscriptions that offer a 10-20% discount for paying the full year in advance. Whenever possible, most people jump at the chance to save that amount.
Keeping good tenants is more cost-effective than finding replacement tenants. Look for creative ways to thank existing tenants and make them feel special and loyal. A little effort goes a long way when it comes to customer service.
At Coastal Storage, we work with our investors for long-term success. When our investors succeed, we succeed. Whether you have an existing portfolio of self-storage properties or you are just getting started, we work with you to find the next best investment and to ensure your success. Call today to speak with one of our self-storage experts at 904-591-0140.