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2011 8 Oct

The priority of any self-storage management company is to increase the overall efficiency, productivity, and profitability of each property. This process exceeds just a simple review of a profit and loss statement or changes to the curb appeal of a facility. Cutting Edge Self Storage Management has invested years in the development and procurement of self-storage operational techniques that allow us unprecedented communication, efficiency, and speed between all of our facilities. These techniques have given Cutting Edge Self Storage the ability to increase the number of properties in our portfolio without decreasing the level of service to our property owners and investors. Cutting Edge Self Storage analyzes any new self-storage property in three steps:
STEP 1: REVIEW PROFIT AND LOSS
REVENUE: A common misconception in self-storage is that income is limited to existing rental income and income from boxes and locks. Revenue can be increased in multiple ways:
1. MANAGE STANDARD RATES: Rates should be reviewed regularly and balanced with rates in the current market.
2. RENT INCREASES: Increases on existing tenants are completed on a regular and timely basis
3. POS INVENTORY: A goal of 1%-3% of revenue should come from POS items i.e. boxes ,locks, tape
4. ADDITIONAL INCOME: Items such as Cellular Phone Towers, Truck Rentals, and Tiered Unit Pricing, and other revenue enhancers.
EXPENSES: Expenses can easily attack the profitability of any self-storage facility. Cutting Edge Self Storage has the experience to understand which expenses to reduce and when to reduce them.
In December of 2009, Cutting Edge Self Storage was contracted to management a self-storage property in Cocoa, FL. Within one year of taking over the property, Revenue Increased 11.2%, Expenses Decreased 18.4%, and NOI increased 37%.
STEP 2: REVIEW EXISTING MANAGEMENT
The manager is the most important part of any self-storage facility. Potential customers will only store items at a facility, in which they feel comfortable. Stanford University conducted a study on what people value when purchasing a good or service. The results are very interesting. 17% of respondents paid the highest price for any good or service, because they see value in price. 13% of respondents paid the lowest price for any good or service, because they felt the lowest price was the best value. 70% of respondents said they choose a good or service based on something other than price. This means that 7 out of every 10 potential customers will be gained or lost on something other than current rental rates.
STEP 3: EXPAND THE USE OF TECHNOLOGY
Technology has changed the way self-storage facilities conduct business. Cutting Edge Self Storage has become a leader in integrating low cost, but highly effective, technologies at each of our stores. Cutting Edge Self Storage is one of the first self-storage management companies to embrace “cloud” based technologies at each of our self-storage facilities. This allows our company to manage all aspects of a self-storage facility with only a simple internet connection.

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