Some facilities seem to have it all—great location, good unit mix, strong market demand—and yet they still underperform. After lease up, occupancy stalls and net operating income (NOI) stagnates.
More often than not, the issue isn’t the facility itself; it’s the management approach. This could manifest as
If left untreated, mismanagement can quietly erode your asset’s value and performance.
But there is good news. A mismanaged facility can be transformed into a high-performing, revenue-generating asset with the right strategy—and often, the right third-party management company.
In this article, we’ll explore how you can recognize mismanagement and the core areas that need to be fixed. We’ll also discuss how third-party operators can fast-track the turnaround process.
Not all signs of mismanagement are dramatic, but if you look closely, you can identify major indicators of underperformance. Here’s what to watch for:
Underperformance often starts with operations. If you don’t have a consistent structure for running your facility, you’ll waste time and resources on tasks that can be automated or resolved quickly by following standard operating procedures (SOP).
Fixing this starts with building a foundation of clear, repeatable processes and setting expectations for your staff.
While optimizing how you operate is important, it can also be extremely difficult and time consuming.
This is where working with third-party operators can be a big advantage. These companies bring operational discipline and hold local teams accountable with regular audits, performance metrics, and transparent reporting.
Third-party management companies also have the benefit of learning what works and what doesn’t from their history of running the facilities in their portfolio.
Partnering with them enables you to leverage that experience and make the right decisions for your operations.
Many underperforming facilities simply aren’t getting enough traffic. And if they are, the user experience often turns them away.
Setting a marketing budget, learning all the different marketing skills, and ensuring your campaigns keep performing is a tall order—especially when you’re trying to run a facility at the same time.
A good management company can bring in-house digital marketing teams that specialize in storage, which gives you access to an entire team of expert marketers.
One of the most common mistakes in self storage is static pricing. Without dynamic pricing and routine customer rate increases, operators miss major revenue opportunities.
Learn more about how to grow your revenue in our Revenue Management 101 Series. In the first episode our CEO Peter Smyth breaks down how to calculate your street rate:
Sophisticated third-party operators use revenue management tools to monitor market conditions, test pricing changes, and ensure you’re earning top dollar for every square foot.
Collections can be one of the most time-consuming and stressful parts of operating a storage facility—especially when done manually.
Third-party operators can bring modern billing tools, automate workflows, and ensure full compliance with state lien laws—all while reducing labor and improving collections.
At White Label Storage, we’ve developed our own automation for following up with delinquent tenants. We call it StorBill. Learn more about it here.
At the end of the day, happy tenants stay longer and leave better reviews—which leads to more move-ins. Developing a positive customer experience plays a huge role in the long-term health of any facility.
Third-party operators often have dedicated customer support teams, ensuring tenant questions don’t go unanswered, and issues are resolved quickly and professionally.
If you can’t measure it, you can’t manage it. Mismanaged facilities often operate in the dark, with little insight into what’s driving performance.
The best third-party management companies provide clear dashboards and proactive communication so owners can stay informed without micromanaging.
Mismanaged storage facilities aren’t lost causes—they’re opportunities. With the right changes in place, even underperforming assets can become profit powerhouses.
For owners who don’t have the time, expertise, or desire to overhaul their operations, a third-party management partner can deliver professional systems, marketing muscle, and accountability that’s hard to replicate in-house.
If your facility isn’t living up to its potential, it may be time to ask: Is it the market, or is it the management?
To learn more about how we’re helping owners and operators turn their facilities into high-performing assets, schedule a demo with our team.
