We know most operators have begun or are already deeply into the 2025 budget planning for their self-storage operations. Across the board, we are hearing from our partners broadly the challenges of headwinds on NOI (net operating income) due to increasing vacancies and concerns (risks) of rental rates dropping. Without being able to rely on the prior year’s systematic rate increases, operators are widely searching for alternative ways to increase or at least stabilize NOI heading into 2025.
At StorageDefender, we are working closely with numerous operators as part of their planning to incorporate StorageDefender into their 2025 budgets. By adding only a small CAPEX budget item, StorageDefender Smart Units unlock a new average $12-$15 monthly revenue stream that complements street rental rates. This is especially important today given the sensitivity of street rental rates with fewer renters in many local markets.
StorageDefender offers a unique avenue to diversify your revenue streams and achieve an impressive payback period. Here’s why you should consider incorporating it into your 2025 budgets:
- Incremental Revenue: StorageDefender provides a new ancillary revenue source for self-storage facilities. With minimal investment and change to your core storage operations, you can tap into a revenue increase of 10 to 15% per unit. This can be included on your income statement purposed to lift your net operating profit.
- Quick ROI: The beauty of StorageDefender also lies in its rapid return on investment. With a payback period of 8 to 12 months, our operator partners are expanding their engagements in their 2025 CAPEX budget.
- Enhanced Customer Experience: StorageDefender is designed to offer a smart home-like tenant experience, providing peace of mind to both you and your customers. This added layer of modernization has proven nationally to be a strong selling point to attract and upgrade tenants to maximize their lifetime value (LTV).
- Operational Efficiency Improvement: As occupancies and rates decline, there has been an increased focus on operational efficiency to maintain profitability. By implementing StorageDefender Smart Units and Smart Zones, facilities enjoy automated visibility, reporting, and actionable insights that lead to substantial savings in both labor costs and utility expenses.
How can we help? Consider setting up a call for personalized assistance with our solution sales team who can provide you with a customized budget model for your facility. We’re here to assist you every step of the way.
Want to hear what real self-storage owners and operators think about StorageDefender?
Check out our latest case study to see how Darren Kelley, the President of Right Move Storage, has capitalized on his adoption of StorageDefender to face elevated inflation, lower storage demand, increased labor costs, and escalated insurance costs.
Since the rollout of Smart Units began in 2019, Right Move Storage has achieved:
- 12% Increase in Revenue per Smart Unit
- 96% Tenant Opt-In Rate
- 41% Reduction in Tenant Insurance Claims
- 70% Tenant Advocacy for Smart Units
As highlighted by Darren Kelley, President of Right Move Storage, “Differentiation has been crucial from day one, especially against REITs with far greater resources. StorageDefender has been instrumental in offsetting rising labor, fixed costs, taxes, and insurance. In some properties, we’ve achieved an 87% Smart Unit penetration rate within two years, generating over $5,000 in monthly incremental revenue.”