To quote Benjamin Franklin “…but in this world nothing can be said to be certain, except death and taxes.” In today’s consumer environment, Ben would have to add “…and a lack of space” to his statement. People downsize, divorce, inherit stuff, start businesses, and just plain run out of room. They need a place to put all the things they accumulate over the years, and that place is self storage.
Self storage is a low-risk investment where demand is resilient and leases are short-term. It generates stable cash flow, competitive returns, and opportunities for small investors. You’ll see revenue faster than in many other property types; but, as with most new businesses, there are challenges.
One of the many important matters that you’ll face is whether to hire a new manager. When you buy a self storage property, don’t assume that existing managers are key to the facility’s success and keep them in place without a real transition plan. Yes, sometimes that works great, but it can quietly turn into the most expensive safe choice you’ll ever make.
If you’re using StorSuite investment resources to underwrite deals, compare comps, and map out your revenue plan, you already know the facility’s performance isn’t magic, it’s math, operations, and execution. The manager can help, but they can also slow you down, hide problems, or walk out the door at the most inopportune time.
Let’s talk about what could go wrong so that you can avoid the problems and stay on the upside.
Why Investors Love Self Storage (And Why You’re Probably Reading This)
Self storage is popular because it hits the investor sweet spot:
- Lots of tenants instead of one big tenant (risk is spread out)
- Short leases (you can raise rates quicker)
- Simple product
- Upside from operations, marketing, and technology, not just appreciation
- In other words, you’re not just buying a building you’re buying a business, which is exactly why the manager decision matters.
Problem #1: The Facility Was Doing Well Despite the Manager
This is the first uncomfortable truth. The self storage facility might be performing because of location, lack of competition, strong demand drivers, or a long-standing reputation, not because the manager is an operational genius.
A stable facility can make an average manager look fantastic. Occupancy stays high and the phones ring. Then you buy it, competition increases, expenses rise, or you try to push revenue and suddenly there’s a problem.
The risk: You assume you’re inheriting competence, but you’re actually inheriting ineptitude.
Problem #2: They Were Great at a Finished Project, Not a Transition
Maybe the manager helped lease-up a new facility, stabilized a turnaround, or ran a big expansion project. That’s great, but a transition is a different animal.
Buying a facility often means new systems, new expectations, pricing updates, operational audits, and sometimes a culture shift. A manager who thrived in an environment where it was easy to coast might struggle with new key performance indicators (KPIs) and an updated playbook.
The risk: They’re optimized for the old chapter, not the next one.
Problem #3: They Have Zero Loyalty (And Will Leave When They Get a Better Offer)
The manager didn’t choose you. They worked for the previous owner. Even if they say all the right things, you’re not guaranteed loyalty, especially if:
- A nearby operator offers better pay
- A competitor promises more autonomy
- They don’t like your changes
- They’re burned out and ready for a reset
The risk: You close the deal, and then you’re trying to hire a new manager during a critical transition.
Problem #4: They Might Be a Rockstar… and Rockstars Can Be Tough
Sometimes you do inherit a great manager. They have relationships with the tenants, they keep occupancy up, and they understand operations.
That sounds ideal, but high performers sometimes come with baggage:
- They want to do things “their way”
- They resist oversight
- They don’t like to be challenged
- They know they’re valuable and negotiate like it.
The risk: You end up managing the manager instead of managing the facility.
Problem #5: Neglected Maintenance and “Invisible” Property Issues
The facility looks fine on the surface, but the day-to-day preventive maintenance has been ignored for years. Managers can sometimes defer maintenance to keep costs low and avoid headaches.
Common examples:
- Gate systems held together by luck
- Roof leaks patched but not solved
- Pest issues that “come and go”
- Broken lights and cameras not logged
- Door alarms disabled because they’re “annoying”
The risk: You inherit a maintenance bill disguised as “normal operations.”
Problem #6: Hidden Operational Problems You Don’t See Until You Own It
Operational problems don’t always show up in financials. They show up in areas like:
- Bad delinquency habits (“we don’t like to be strict”)
- Weak lien processes
- Rent increases not being executed consistently
- Discounts handed out randomly
- Poor unit inventory control
- Missing tenant documentation
The risk: Your projected net operating income (NOI) improvement gets eaten alive by chaos you didn’t underwrite.
Problem #7: Resistance to New Tech and Process Changes
If you’re planning on modernizing the facility with online rentals, automated follow-up, call tracking, dynamic pricing, and better reporting, your manager can either be your champion or your obstacle.
Some managers see technology as:
- A threat to job security
- More work
- Too confusing to learn
The risk: Your biggest growth machine gets stalled by someone who doesn’t understand the power of business evolution.
How to Avoid This Problem (Without Creating a Mutiny)
1) Treat the manager like a key risk item in due diligence
Interview them like you’re hiring them. Ask about:
- Delinquency process
- Lien timeline
- Rent increase cadence
- How leads are handled
- Maintenance routines and logs
- What systems they use daily
2) Require documentation, not vibes
Before closing (or immediately after), request:
- Maintenance logs
- Vendor list and any recurring issues
- Delinquency report and lien schedule
- Rate history and discounts
- Unit status report and exceptions
3) Set expectations Immediately
Be clear about:
- KPIs
- Reporting cadence
- Tech/process rollouts
- Customer service standards
- Authority limits (discounting, write-offs, etc.)
4) Build a backup plan before you need it
Consider remote support or a third-party management during transition, and possibly keep a hiring pipeline ready.
5) Make retention intentional
If you want to keep them:
- Offer a clear bonus structure tied to measurable performance
- Provide training and support for new systems
- Give them a path to grow
6) Transition in phases
Don’t change everything right away. Roll improvements out gradually:
- Reporting and visibility
- Collections and lien discipline
- Pricing strategy
- Marketing and lead management
- Tech upgrades and automation
Final Takeaway: Keep the Manager If You Want but Don’t Bet Don’t Bet The Facility’s Success on One Person.
Keeping the existing manager can be a smart move if you verify what you’re inheriting and you’re prepared for what may happen next. The facility’s success should never depend on one person.
Self storage investing is a business. Run it like one, and you’ll protect your downside while unlocking the upside you underwrote in the first place.
