In Odessa, Texas, a self-storage facility had remained dormant and unprofitable for several years, effectively abandoned by previous operators. Units were filled with outdated relics—typewriters in nearly every unit and even an untouched Volkswagen Beetle. With occupancy sitting firmly at 0%, the property posed both operational and marketing challenges.
Challenge
The management team faced the urgent task of revitalizing the facility and rapidly increasing occupancy from a complete standstill. They needed not only a surge of new customers but high-quality, consistent renters who would remain active and maintain low delinquency rates.
Solution
Management deployed Occupancy Edge, a proprietary marketplace and customer-acquisition platform tailored specifically for storage operators. The platform connected targeted, high-intent storage seekers directly to the Odessa facility.
Implementation
After thoroughly clearing out and preparing the units, Occupancy Edge was fully implemented, immediately injecting the facility into its targeted digital marketplace. The system was designed for speed and efficiency, matching local storage seekers with available inventory.
Results
- Generated 6-7 new move-ins per month
- Increased occupancy by 46% within six months
- Achieved delinquency rates substantially below industry averages
- 73% of customers enrolled in autopay
- Became the primary source of new customer acquisition
In Johnson City, Tennessee, a self-storage facility was acquired at a stable 84% occupancy, aligning well with industry benchmarks. However, the facility faced a significant challenge: rental rates were substantially below prevailing market levels, limiting revenue potential.
Challenge
To unlock the facility's true value, management initiated aggressive rent increases. Unfortunately, this strategy quickly resulted in customer attrition, with double-digit percentage losses occurring within just a few months. The management team urgently needed a solution to rapidly replace departing tenants while continuing to push market rents higher without jeopardizing overall occupancy.
Solution
Occupancy Edge was introduced as a targeted strategy to rapidly attract new customers and offset tenant losses. By providing a steady influx of new renters, Occupancy Edge enabled management to remain assertive with rental rate increases and Existing Customer Rate Increases (ECRIs).
Implementation
Occupancy Edge was integrated seamlessly into the property's operations, immediately tapping into a steady flow of storage-seeking customers in the local market. Its proprietary marketplace facilitated efficient, consistent customer acquisition without significant operational disruption.
Results
- Increased occupancy from 84% to 88%
- Boosted top-line revenue by 31%
- Averaged 3 new renters per month through Occupancy Edge
- Quadrupled monthly net new customer count from 1 to 4
- Successfully maintained occupancy while implementing aggressive pricing strategies
Implications
This case demonstrates Occupancy Edge's capability to not only stabilize occupancy during aggressive pricing strategies but also substantially enhance profitability. Facilities facing similar pricing-to-occupancy trade-offs can leverage Occupancy Edge to sustainably maximize revenue growth.
