The Nick Huber Show EP 158: Management fees and why building a sustainable management company is important
Aug 26, 2024
Explore the intricacies of management fees in the self-storage industry. Learn why investors must reevaluate the fees they charge to ensure sustainability. Discover the relationship between financial health and the resilience of management companies. This discussion emphasizes investing in talent for enhanced profitability, equipping listeners with strategies to thrive in tough economic times.
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Drive-By Traffic Boosts Performance
- High drive-by traffic drastically boosts self-storage facility performance in leasing and rent rates.
- Visibility on busy roads correlates strongly with outperforming storage facilities.
Winning Bet on Traffic-Heavy Location
- Nick's team bought a storage facility across from Walmart on the busiest road in town.
- Despite initial underwriting doubts, the facility outperforms by charging highest local rents driven by traffic.
Charge Realistic Management Fees
- Charge management fees that reflect the true cost and complexity of managing properties.
- Underestimate fees at your own risk; proper management requires dedicated teams for many specialized tasks.