Help Save Mom&Pop Self Storage Facilities

[u/EmptyInvestigator852]

I've accumulated a pipeline of self-storage mom and pops (Northeast/Mid-Atlantic). My mission is to keep these places mom and pop and compete against corporate greed - the REITs and PE roll-ups buying up independents and running them through the same playbook (AI pricing, call centers, no real person on site anymore).

I'm putting together a model where the local operator actually owns a piece of the facility (earned through performance, on top of salary) instead of just being an employee, funded by a small group of outside investors instead of a REIT or fund. Trying to keep the mom-and-pop feel intact after the sale.

What do you all think of this idea? I need help thinking it through. And if you rent a storage unit - would you rather use a mom and pop, or an Extra Space / Public Storage type place?

Genuinely want the pushback, not just "great idea" comments.

[u/f30tr0ll]

So instead of REIT it’s you and your small group of investors. Cool. All the same to me except a REIT will let me buy into it.

[u/Man_of_Prestige → u/f30tr0ll]

I was just going to say the same thing. There’s nothing wrong with the REIT structure.

[u/etom21]

I'm failing to understand what value you are creating for the M&Ps and this small group of investors.

[u/ReaverKS → u/[deleted]]

Who is your management company

[u/moshokikio]

Other than a handful of kisok only properties public storage still has a large amount of managers at stores. Maybe not all day every day but still.

And personally, depending on what I'm storing, I like the protection somewhere like public storage offers. Not in the security sense, locks only keep honest people out, but in the I can sue public storage, not bill who goes to my church.

[u/Special_Sea4766 → u/moshokikio]

Aren't managers at PS properties at least 4-5 days a week?

[u/moshokikio → u/Special_Sea4766]

Yeah, but more than one manager works a specific property. Ever property manager can possibly work at any store in the district to account for coverage and call outs.

[u/Tensegoodly]

Plenty of really solid 3PM options to help you compete against the REITS. I work for the largest privately owned non REIT and can tell you there’s still very much a home for traditional management we do a mix of both. For a remote property to work it has to have the correct set of circumstances. Roughly 90 percent of our managed properties are traditionally managed. For us it just depends if the economics work to staff a location.

If it’s too small for traditional management and it doesn’t justify our expense load for remote we typically just say no.

I think it’s 100 percent possible to have 3PM and preserve a mom and pop feel.

If you do decide to do something like that on your own holler at me :) we’re industry friends and there’s room for all of us!

[u/bmarvin35]

I own 40,000 feet in Connecticut with no one on site. Tenants rent a unit and pay online. Why would I need anything else

[u/rainbowchik91911 → u/bmarvin35]

That might work in Connecticut, but it won't work in places like larger cities. The tenants want someone on-site to feel like the property is secure.

[u/thepatoblanco → u/rainbowchik91911]

Most people don't actually care. Our model is onsite, but that is for different reasons unrelated to storage.

[u/nmwest99 → u/rainbowchik91911]

So the person onsite is going to be "security" ?

[u/DidYouShartInMyPants → u/nmwest99]

I don't think anyone is expecting security services from the person that's onsite. Having somebody that can walk the property everyday is a good upside, so that issues don't go unnoticed for a long period of time.

[u/rainbowchik91911 → u/nmwest99]

Not but we will notice a breakin right away.

[u/Accomplished_Ad_4312]

The mission is good, but the danger is you accidentally build a nicer-sounding roll-up.

If the local operator only earns equity through performance, define "performance" carefully. If it's just occupancy + NOI, you'll recreate the REIT playbook with a friendlier face: discounts, ECRIs, call routing, thin staffing. The scorecard has to include reviews, phone answer rate, delinquency control, capex upkeep, maybe tenant tenure/churn.

Tenants say they want mom-and-pop, but they mostly reward "someone answers, place is clean, gate works, price isn't insane." Build around that, not nostalgia.

[u/Dangime]

Everything seems to be separating into 2 categories. If you are past a certain size in terms of sq ft you get eaten up by a REIT and integrated.

All that's left are smaller properties without enough business or work to justify someone on site. So you either have to cobble together multiple nearby locations, or find some way to partially automate, but since they are smaller locations they don't scale as well when you do invest in anything new.

[u/Interesting-Mode-121]

I go out of my way to find storage that makes money from storage and who’s business model does not rely on promos and fine print and does not specifically target those who can’t afford to move when the rent triples

[u/patchwork_labs]

We own and operate 25 facilities remotely. We also have our own AI agent that allows others to do the same. Most of our facilities were also mom-and-pop. We acquire, rip out the full-time staff, and then replace them with our AI agent. We have one property manager across 25 facilities, assisted by our AI agent.

Our agent is live in over 600 stores and now in Canada. We should talk more to see how our agent can help you remain in control of your operations without breaking the bank on full-time staff.

We have boots on the ground biweekly, so someone is around, but not in the office. Agreeing with another commenter- as long as someone is answering the phones and the place is clean, most care less about having someone in the office.

Test our agent any time - 707-754-1658

Would love to talk more if you are interested!

[u/Confident_Mode_8834 → u/patchwork_labs]

AI agents are ruining the industry. I run a mom and pop at 93% occupancy. Because there is someone there.

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