Frequently Asked Questions
What should an owner look for in a management company?
Above all, you want a management company that is an expert in the self-storage business. To maximize your asset’s NOI, your management partner must be able to continuously adapt to an everchanging environment. Your level of confidence in your management company’s ability to oversee your property with your interests in mind is of the highest importance. Responsiveness to your questions and concerns is key. Ultimately, a knowledgeable team capable of mastering daily operations with advanced systems in place will make your facility as profitable as possible.
What are the benefits of REIT management companies vs. regional management companies?
The many advantages of REIT management companies include expense management through better economies of scale, online marketing authority, and revenue management strategies. REITs seek to maximize revenue for shareholders, and you stand to benefit from that core competency. Along the way, you will have the transparency that comes with a publicly-traded company.
How large should a facility be for it to make sense to choose a management company?
With the management fee in place, it may not make sense to pay the monthly minimum for a facility under 35,000 net rentable square feet, unless that site is in a high-rent market.
How do you differ from your biggest competitors?
CubeSmart’s main focus is on customer service. We strive to offer our customers, teammates, and third-party management partners the highest levels of service. Additionally, we share a portion of tenant insurance profit with owners. Lastly, unlike some operators, our stores are open 7 days a week to maximize revenue.
What are your management agreement details?
CubeSmart’s management fee is based on gross revenue. Facility-level expenses are passed through to the owner. Included in the fee is all-inclusive management services from CubeSmart’s internal teams: Operations, Marketing, Revenue Management, Human Resources, Information Technology, and Accounting.
Who will I work with once my facility is being managed by CubeSmart?
CubeSmart assigns a relationship manager to serve as your main contact no matter how many facilities
you own across the country. Relationship managers are based in our corporate headquarters, giving them ready access to department leaders. Local district managers are always available and know the facilities and markets best because most are from the local area. We encourage you to develop a rapport with both your relationship manager and district manager(s). You will also work with a dedicated property accountant who reviews property income and expenses, pays the facility’s bills, answers your accounting questions, and sends your financials each month.
Is there preferential treatment of owned vs. managed stores?
Every managed facility is treated equally to CubeSmart-owned facilities. There are no differences in how we operate our stores through our call center interactions, marketing efforts, revenue management practices, or any other services. Our goal is to make our customers happy while maximizing your revenue.
What kind of reporting is available?
Owners have access to two different systems that offer 35+ reports available on demand at any time. Daily flash reports arrive via email each morning and highlight rentals, vacates, occupancy, revenue, accounts receivable, and more.
What if you already have a site nearby?
CubeSmart has many facilities close to one another because there are benefits to having a strong presence in an area. With multiple locations, you have better control over rates and discounting, customer-sharing when unit types are not available at one facility, payroll sharing, vendor expense control, and more. You also benefit from better brand recognition, competitive rates, and higher search engine rankings.
Will you develop for me?
We do not offer development services, but we work with many developers through the initial phase of the project to assist with site layout, unit mix, office layout, signage, and forecasting.
How can you help a developer prior to opening? Are there fees?
We prefer to be involved in a project as early as possible, so we can offer our input on site layout, unit mix, office layout, and signage. We also share our design and construction specs with our owners. There is no cost to have our assistance prior to opening. However, we do require a signed management agreement before our team spends time evaluating a site.
How do I know what costs are involved once you are managing?
At the start, CubeSmart completes a projection for you that outlines expenses, revenue, NOI, and lease-up. Once your store opens, you will approve the budget each year with input from your relationship manager and the store’s district manager.
What if I want to sell my facility to you?
We frequently acquire facilities from our managed store owners, and we welcome the opportunity to speak about your site. Our investment strategy is to continually look to acquire quality assets in our target markets.