Without question, one of the most important things to consider before you decide on a third party management company to manage your business is, “how successful are they at revenue management?” This is critical when it comes down to getting the most out of your self-storage property.
One of the first things Owners want to know is how much will cost them to have RPM provide professional management of their property. RPM can honestly tell them, “Nothing at all”. How can we say that? Revenue management.
In 2005, Monty Rainey, RPM President, established himself as an innovator when it comes to revenue management when he developed and wrote CROSS Training: Components of Revenue Optimization for Self Storage. Today, this program is the basis for revenue management at hundreds of self-storage properties throughout the world and has revolutionized revenue management practices within the industry.
Our program utilizes a three-pronged approach to maximizing revenue; occupancy, rate management and tenant rates, combined with proven methods of pricing psychology.
Many companies, including REITs, have spent thousands of dollars trying to computerize this revenue management model. Every property is unique. Taking a cookie cutter approach to revenue management can cost you thousands of dollars in lost revenue.
Through the implementation of our revenue management system, RPM will have an immediate impact on your bottom line. Results will vary, depending on the degree in which a property has been under-managed and what time of year we begin managing. Since opening its doors, of the properties RPM has taken over management, we have never experienced less than a 9.5% increase in gross operating revenue in the first 6 months. The average increase at the time of this writing is 18.4% in the first 6 months with some properties seeing 25% increase or more. The amount of currently unrealized income we will bring add to your Gross Operating Income greatly exceeds what RPM charges for professional management. That is how we can tell Owners it will cost them nothing to have us manage their property.
Revenue management is the most important aspect of improving Gross Operating Revenue. This is an area that cannot be left in the hands of computer models that cannot account for the unique attributes and demographics of your property, nor can it be left in inexperienced hands guessing at what may or may not work. You need a proven system that will maximize the potential of your property. You need RPM Storage Management LLC.