By Jim Breunig - Storage Authority Franchise Director
KPI stands for Key Performance indicator, a quantifiable measure of performance over time for a specific objective. Here are the 7 KPIs Self Storage Teams need to focus on and drive revenue with.
•Occupancy – Track leads and lead conversions, set a goal of 70%. Use Lead to Lease in Sitelink or whatever lead tracking system you currently have. Update multiple times a day. Use consistently for better follow-ups and conversions. What if an existing Tenant doesn't need the larger space they originally rented? Don't just move them out, offer to transfer them a smaller unit if available. What if the Tenant has outgrown the original space they rented. Instead of proposing a transfer maybe an additional unit would offer more flexibility and avoid the hassle of moving their already over filled unit. The fuller you get the higher your rates.
Occupancy Goal 90%
•Delinquency – Don’t Waive Late Fees, Follow Past Due Schedule, text, calls, email, overlock, gate etc. Set a goal of 0-30 days past due Less than 7% of expected income, over 30 days less than 1.5% of expected income. Over 90 days 0%
•Auto Pay – At move in let the tenant know that most of our customers choose auto-pay to avoid any hassles with late fees down the road. Existing tenants, every time they make a payment ask again if this is the card they would like to use for autopay? The only reason to ever waive a late fee (1 Time) is if the tenant goes on autopay. Goal is 100%
•Insurance – Proof of insurance is required at move in, or purchase ours. Audit existing tenants for valid up to date policy. Out of date, or missing documents needs a phone call and an email giving a specific time frame to comply or be enrolled. Goal 90% of all new renters.
•Merchandise – Show and Tell for every prospect and new tenant that walks through your door. Many people don't move that often and are unaware of all the helpful items you have to make their move easier. Silent salesman box pyramid roadside everyday. Goal $30+ per rental.
•Google Reviews – Ask every rental, email and text links same day. Tenants onsite who like you and are happy with your service but haven't left a review ask again, ask to help, for some it may seem to difficult or maybe don't know how. Follow up, Goal - 5 Per Month.
•Income – Set Goals with owners – Last year average growth in the industry was 12%, however many facilities seen growth over 30%. What's your goal?
Look back at 2021 and use that as a starting point. Then track these numbers monthly, no later than the second day of month for the previous month statistics. Ultimately the monthly numbers are impacted daily so make sure and break goals down into smaller weekly goals. If one week comes up short figure out what the issue was and make up ground the following week.
Jim Breunig is a franchise director at Storage Authority. His passion and focus is helping new and existing franchisees in the area's of operations, sales, and marketing. Jim has over 15 years of experience in the self storage industry working with some of the largest REIT's and Privately held organizations in the business. Jim is excited to share his knowledge and is available at Jim@StorageAuthority.com, or by phone, 941-312-1964 to answer any questions you may have, or to share the Storage Authority Franchise opportunity and advantages with you.