93% Occupancy in Fifteen Months: SYS Self Storage's Phenomenal Lease-Up
Self-Storage Ninjas’ most honorable client Bob Fuchs knows what it takes to meet customer expectations. From consistent response rates to personalized interaction, it's no surprise that his new facility, SYS Self Storage in Brighton, Michigan, has seen exponential growth and stabilized more quickly than anticipated.
Fun fact: SYS Self-Storage was almost called “Aardvark” due to a family joke, but that name was taken. Consequently, a brainstorming session tossing names around was in order. They posed the question “What do people need a storage unit for?" and the answer was obvious—to store your sh*t! And thus, “SYS Self-Storage—The Place to Store Your Stuff!” was born, adjusted to Store Your Stuff for the sake of professionalism. However, people don’t usually need help filling in the acronym themselves.
After a soft opening in January 2021—where internet issues and other unsavory obstacles abounded—they opened with a roaring start around June of that same year.
“We became very visible,” Bob says, “We did an open house, and our neighbors heard about us. We started using Google AdWords over the summer to see the impact that might have,” he continues, “We really started leasing up in April 2021. And then, when students started leaving college in May, we saw all of the normal things that happen. People were on the move!”
There was an intense need for self-storage facilities in the area as confirmed by his self-storage feasibility study. “The market we were in was underserved. And we knew that. We just didn't realize how much,” Bob explains.
Standing Out
Though the submarket is undersupplied, and people are looking high and low for a facility, tenant expectations are similar whether it's a lower-class company or higher-end—Bob and his crew go above their competitors in several ways.
“We answer our phone till 8:00 at night. It’s a small family-owned business. And our phone is always answered,” he says. “Some tenants don't have internet access, or they're on the road, or they're not computer-savvy. We take their information over the phone. Others do everything online. Most of our tenants we have never met face-to-face.”
Being the most expensive facility in the area, SYS Self Storage gives all aspects of operations everything they've got. In part to meet expectations, but in a much larger mission to meet people where they’re at with what they need, when they need it.
“Probably the biggest thing is that we respond to people. When they call, leave a message—we call them right back. We treat them well. We're not employees. Every person who answers the phone is an owner. And that's why we have 5-star reviews on Google from every person,” Bob explains.
This method is a stark contrast to the majority of self-storage facilities in the area, where response rates vary from unhelpful to nonexistent. Their best referral source is the small, locally owned facilities that have a waiting list.
Bob didn’t hold back on developing his site. “We covered every inch of the property we could,” he says. Expansion isn’t possible—they built to max capacity.
Trial and Error
SYS Self Storage hit more than a few road bumps in terms of planning. “The business park association didn't want us there. They did a vote to try and stop us because they said we didn't follow the rules, but they had no rules to follow,” Bob says, setting up what led to a pointless court hearing. “The biggest issue was architectural guidelines. They didn’t have any and they didn't like what we were building.”
Bob, of course, brought his plans to the association affiliated with the location they would be building on, and he even changed the proposed color of the units to what one member requested.
“I understand how things work.” Bob says, “and when we went to the hearing, their attorney got up and said, ‘They didn't follow the rules. They didn't communicate. They're not welcome. Blah, blah, blah.’ And then our attorney presented our side.”
The judge was confused as to why they didn't provide the information to the association at the start, but Bob cleared that up as cleanly as possible—by telling the truth.
“I said ‘They've had that information since last May, and now we're in March.’ The judge sits there for a second and said, ‘Wait a minute. Are you telling me they have the information?’ I replied, ‘Yes, your honor. We gave it to them. We even met with them and made some changes at their request. It's right in the information we submitted.’”
The legal hoops weren’t put to bed yet, though, and it would be a few months more (after they started construction!) that the case was dismissed.
If we shift our gaze to the development of the property, we find more bumps in the road. Bob has a few pieces of advice for those looking to develop self-storage facilities.
Bob’s Top Tips
Straighten out your internet as soon as humanly possible to avoid jumping through hoops of jargon and pass-around at your internet provider. Assume it will take longer than you expect. Start early, get it done.
Trust your gut. For SYS that meant double and triple-checking your asphalt outcomes. If you feel like you didn’t get the result you were paying for, dispute it. Don’t pay until it’s fixed. Follow your instincts. It can be tempting to greenlight everything and rush to opening day, but remember, part of the value people are looking for in a storage facility is appearance and quality. Bob ended up having to sue the company that did his asphalt. He informed us that—finally—the fixes are scheduled to be completed in the next 30 days at the time of this publication.
If you’re new to the industry, find an expert you trust. Your instincts will take time to develop. Until they do, don’t shy from asking for help and taking advice from people who have been in the game longer. More often than not, they’ll be thrilled to help. Make sure they have a history, and you’ve talked to their other customers—not only Google reviews.
The phone will ring anytime—if someone locks themselves in the facility, forgets their code, etc.—you have to be ready to solve the problem. This tip especially applies to family-owned and operated businesses.
Don’t be afraid of your competitors. Partner with them. Know what they have to offer. If you are full and someone needs a unit, give them your competitors name and contact information. Do everything you can to serve the customer’s needs. You’re providing a product, and if you provide a good product, you’ll succeed.
Buy quality gate entry and exit keypads with remote access. Install a quality surveillance system with remote access. Use state of the art rental and management software.
You’re not going to get the unit mix right. It’s next to impossible to guess what the market is going to demand, and the important thing is to act, commit to your decision, and leverage what you have.
Looking Ahead
Bob’s family have their eyes on finding more land to develop. The issue lies in locating a price point that makes sense within their targeted area.
And to add to that, the market is shifting. “The dramatically underserved market we’re in has three new facilities that have opened or are under construction. Because of the additional square feet coming online, the market is more balanced,” says Bob.
With these facts in mind, Bob is sure it's only a matter of time before they find the spot they’re looking for. It’s all in the timing.
Core Principles
The smallest actions can have a sizable impact, “Follow-up is important, and communication is important,” Bob says, “I'll give you an example. One morning I got up, and the overnight charges had gone through. We were at less than $500 for the day. We had seven people who were past due and my goal that day was to contact everyone, either by voice or text, and ask them to get caught up. By the time we closed out the day, our revenue was over $1,500, just by reaching out to people.”
Don’t be afraid to make connections. Show people that a real person is looking over their account.
When it comes to the future of self-storage, it can be tempting to listen to the hype of multi-story units. However, consider your environment. Are you suburban? Urban? Rural? Take into account the type of people who will be utilizing your facility and what unit types will best serve those needs, “When you call someone back quickly, they know it matters,” Bob says.
Make the call, strive for connection, and be consistent with your responses. That’s the backbone of a reliable business. Reputation is what brings people back and what makes them spread the word.
Congratulations to Bob and his family! Visit the SYS Self Storage website to learn more.