What do you do when a tenant gives notice to vacate self-storage? This is an important question to consider. You’re behind the curve if you haven’t.
Fret not. Today’s post will focus on 3 steps to keeping good tenants so you can work smarter, not harder.
Keeping a good tenant in self-storage is easier than most people think. What we notice in this industry is that not everyone works as hard at retention as they do at marketing to find new tenants. Keeping a good tenant is often free at the outset, and pays off over time. Finding new tenants costs marketing dollars, pay-per-click ads, and time used to execute.
This great article in Inside Self Storage got our wheels turning about the top 3 ways to keep your customers rather than finding new ones. Here you go.
- Pick up the phone.
- Track changes.
- Offer incentives.
Pick up the phone.
We recently posted an article about customers’ need to speak with a human representative rather than an AI chatbot. This is the time to start picking up the phone and calling exiting tenants. All tenants who give notice about leaving should be contacted within 24 hours without fail. The sooner you contact them, the better. It would be wise to keep a company policy that a notice of cancellation email is responded to within minutes, not hours. The response should be a phone call – not an email reply.
What do you ask on the phone? “Why are you leaving?”
That’s it. Why are you leaving? Then wait for the answer.
Customers who are downsizing and no longer need storage may not change their mind. They’ve made a decision and are getting rid of their items or moving to a bigger house where they can bring all their stuff. Whatever the reason they no longer need storage, it may be a challenge to keep them if they don’t need storage.
Customers who are struggling with finances, payment options, or rent increases are opportunities for retention. Managers are wise to find solutions to keep them on board. If a recent rent increase has the customer ready to jump ship, find a creative solution for a set time frame that feels like a win to the customer and keeps them happy.
Track changes.
When a reliable customer suddenly becomes unreliable, it’s important to notice. These changes look like cancelling auto-pay, late payments, and even missed payments. It’s important to track changes and make immediate contact with the customer. Refer to the first step above.
Offer incentives.
The goal is always to keep a customer on auto-pay. Auto-pay makes it simple to collect rent and keep the pulse of the customer. When considering incentives specific to your business, look at options available to you. Don’t compare your business to someone else’s.
If Ross decides to leave because he found a better rental rate for his 10×35 unit, it’s time to make a deal with him for retention. Within 9 months of him renting the unit, you have raised his rent twice. He’s been on autopay throughout his contract and is a good tenant. Do you risk losing him and having to fill his spot, or do you find a solution where you both win?
At Coastal Storage, we partner with investors, owners, and operators to grow small businesses into big businesses to create a lasting legacy for future generations. We work strategically to help owners and operators be successful in management. Call us today at 904-591-0140 to work with our team of dedicated self-storage real estate experts. We can’t wait to work with you!