Have You Heard of “Unattended Storage Facilities”?
As with most other industries, many modern self-storage facilities are shifting toward a “technology first” experience. In many ways, embracing automation and technology can help make the customer experience much more streamlined and hassle-free.
In recent years, however, some facilities have virtually eliminated their on-site staff members, creating “unattended” storage facilities. While employees still exist at these facilities, they primarily work remotely, meaning no one is physically present at the facility to oversee operations or address customer concerns quickly.
Let’s take a look at how facilities have incorporated automation into their operations, and the pros and cons of doing so.
How Automation Has Reshaped Facility Operations
Technology and automation enable customers to complete tasks on their own, from renting a unit online to automating payments, reporting concerns, leaving reviews, and more. This enables operators to minimize payroll costs and reduce “friction” during the rental process.
With automatic payments, in particular, facilities can also reduce delinquency rates and maintain a more predictable cash flow.
Pros and Cons of a Fully Automated Facility
A fully automated/contactless facility can operate successfully and even gain you a competitive edge. Its success, however, depends on the operator’s ability to extract the benefits while minimizing the drawbacks.
Pros of Operating a Fully Automated Facility
Cost-effective: The more tasks you’re able to automate, the fewer staff members you need to operate the facility. A facility can’t run completely without human oversight, but it will require fewer staff members on-site to provide customer assistance.
Immediate and easy access for customers: Most automated facilities enable customers to enter the premises 24/7 with a key code or key fob. Some mobile apps even allow customers to message the property manager, send vacate notices, search FAQs, and make payments all on their time, directly from their smartphone. They aren’t restricted to certain operating hours, which can be a big benefit for those with difficult work schedules or other schedule restrictions.
Potentially higher valuation: Implementing technology and automation effectively can improve the efficiency of your facility and minimize operating costs—making the property potentially more valuable to future buyers.
Scalability: When your facility doesn’t have to rely on employees to address client needs (opening accounts, accessing the facility, paying rent, etc.), it can be much easier to scale and grow without significantly increasing operating costs.
Cons of Operating a Fully Automated Facility
Less security: While your facility will likely have certain security precautions (video monitoring, fencing, alarms, and keypad entry, for example), having someone on-site to react in real-time can help more effectively mitigate security risks or emergencies.
Alienating certain clients: Some people, especially older adults, may still prefer to interact face-to-face with a property manager. They tend to view these interactions as integral to the trust-building process and may not be comfortable becoming a customer online or over the phone. In addition, some clients may not know how to sign up for a unit or pay their rent online.
Property may go unmaintained: With no one there to physically oversee the property on a regular basis, it’s easier for certain maintenance requirements or repairs to go unnoticed. Even the landscaping, which impacts curb appeal, can quickly become unsightly if left untouched for too long. Your employees, property managers, or third-party maintenance crews will need to be extra vigilant every time they visit the property.
Trust in third-party contractors: If all employees work remotely, the facility may rely on third-party contractors to come in and fix repairs, maintain the property, or clean out units. This requires a high level of trust and communication between the facility and contractors to ensure all work is being completed as expected.
How Belrose Integrates Technology Into Facility Operations
At Belrose, we understand the competitive edge technology brings to our facilities. We incorporate easily visible QR codes directly on our properties and in marketing materials, which enable clients to sign up from their phone within minutes, as well as provide automated online payments.
While we embrace technology to make the customer experience seamless, we still find value in staffing our facilities with people who can assist customers on the spot, identify concerns, ensure facilities stay maintained, provide an extra level of security, and more.
If you’re interested in learning more about how our team leverages technology to deliver higher returns for our investors, we encourage you to schedule a free consultation with us.