Top 10 Tips to Maximize Revenue

Contributed by Anne Ballard, Universal Management Company 1. Use one set of rules for delinquency and collections. Many owners make lots of special deals and waive too many fees; use the same rules for all. This makes the manager's job easier and everyone knows they must pay on time. 2. Overlock all past dues. Same reason as above, no exceptions whether they are a company or an old customer or you like them. 3. Raise the rent. On all units each year at least once and at least by some amount. When the customer has been there 300 days with the same rent, schedule the rate increase and get the letter out with at least 30 days notice as required. 4. Raise the street rate before you run out of that size, when the size is 90% occupied and/or if the size has three or fewer vacant. This can help you sell the ones for which you have lots of vacancy, when the sizes above and below it are at higher rates. This = perceived discount. 5. Make sure merchandise is marked up at least 2.125 times the cost. This will give you 55% of the sale price as profit. Some items will carry a higher markup, but remember that box and supply sales are a convenience purchase and shopping for these prices is less critical than storage pricing. 6. Take the customer shopping. When they come in the door and say they need boxes, or when you are renting the unit or on the phone, ask them "What will you be packing?" It is an easy way to get them talking, and then you recommend all items needed. 7. Call, call, call. There is no substitute for making calls to collect past dues, get pre-paids, or follow-up on site visits. Weekend calls are especially good for this. 8. Ask everyone for referrals. With each and every interaction (collecting rents, renting new units, customers making payments, vendors and delivery people), you won't get what you don't ask for. More referrals mean less cost per lease and lower advertising costs. 9. Track the results of all activities. If you don't know which ads worked, where customers came from, or how long since it's been since the last rent increase, you will not be making good decisions about future advertising and getting regular increases. 10. Generate your own traffic. Don't just rely on drive-by traffic or your sign or Yellow Page ads; go out in the marketplace and meet and greet everyone, making them aware of your store, referral programs, and special features. This reduces expenses, and along with increasing revenues, helps to improve profits. © 14 Copyright TSSA March/April 2009 · www.txssa.org

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