Bonuses for Self-Storage Managers

Let’s Discuss Bonus Structures for the Self-Storage Industry That Actually Work!

Over the years, I have tried various bonuses and incentives for self-storage managers. The worst programs were those our accountant had to complete, which the managers never fully understood. In contrast, the best program was simple and based on the store’s income.

With every type of incentive plan, some managers exploited the system to their advantage. For instance, some would hold deposits until the first day of the next month, knowing they wouldn’t reach their goals. Similarly, some managers would delay removing customers who had moved out until the beginning of the next month to qualify for a more significant bonus in the current month.

My list of bonuses and incentives is extensive. What works best for me is the percentage of the gross revenue each month. This approach encourages managers not to offer excessive discounts, waive too many late fees, and enthusiastically support rent increases!

Bonus Incentives and Awards

The most effective bonuses and incentives for self-storage managers are those that are shorter in duration. Offering rewards or bonuses on a monthly or quarterly basis is often more effective than doing so annually. Additionally, praise serves as a valuable positive reinforcement for employees. Allowing employees to attend self-storage conferences in exciting destinations like Las Vegas can also be a great motivator.

Some Bonuses for Self-Storage Managers to Consider

– Holiday company parties 

– Birthday celebrations and gifts 

– Company-wide property competitions 

– Conference or convention trips 

– Achievement awards 

– Cash rewards 

Before You Begin an Incentive Program

Before implementing any incentive program, it’s essential to think it through carefully. Gather input from the individuals who will be affected by the program. Ensure that the incentives align with your brand and remain within your budget. 

When I managed 36 storage properties in the West, we implemented a monthly bonus system based on the store’s gross income and mystery shopping scores. The manager would not receive a bonus if a property’s mystery shopping score fell below 70%. The higher the mystery shopping score, the larger the bonus.

The manager requested a raise during a visit to one of my storage properties in Las Vegas. This store had been experiencing a gradual decline in income, although occupancy remained steady. Also, delinquencies were slightly higher, and the staff offered more discounts than usual.

I gathered some data to have a solid discussion with the manager about the raise. I contacted my office to inquire about the employee’s mystery shopping scores from the past six months and how much she would have earned if she had received even her lowest bonus.

With this information, I asked the manager how she would feel about a $2,600 raise. She was thrilled and responded that she would love that amount. I then explained that this figure represented what she could have earned if she had answered the phone effectively. She had five months to improve her sales skills, but unfortunately, the store’s performance had not improved since she took over as manager.

Ultimately, she chose to pursue a new career dealing cards at a casino, where she now experiences much less stress. Meanwhile, the new manager at the store managed to increase the income within just three months and continued to receive good monthly bonus checks.

Evaluate and Measure Bonus and Incentive Programs

Each year, evaluate if the bonus program goals were achieved and consider any external factors that may have influenced the results, such as COVID-19. Adjust the plan and rewards as necessary.

Celebrate Successes

Recognize achievers and ensure a precise mechanism to communicate results, such as through award dinners and annual meeting celebrations. While most incentive and bonus plans can create stress for employees, the rewards can help alleviate that stress.

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