Customers Are Not Always Right!

Employee morale can suffer significantly if your problematic self-storage customers make their work lives difficult. We all know that customers are not always right! Over the years, I have witnessed many instances where management prioritizes customer satisfaction over employee well-being. This imbalance can become apparent when a manager informs me that they have repeatedly warned a customer about inappropriate actions, such as using the area as a restroom. If these issues are not addressed, they contribute to employee resentment towards management.

Acting decisively at the first sign of problematic behavior is crucial, as allowing it to continue can consume more time and resources. Problematic self-storage customers often share their experiences through word-of-mouth, which can encourage similar behaviors from others. Additionally, it is essential to emphasize that managing these situations requires considerable effort and resources.

I believe in charging higher fees for problematic tenants, which can help reduce stress for managers, employees, and other customers. Even when customers know they are wrong, they may try to evade management, leading to a frustrating situation for everyone involved. To counteract this, I actively support my managers in enforcing policies and addressing these issues promptly.

Let Your Managers Manage!

If a tenant has been with us for 10 years and receives a late fee notice that was mailed on time, we need to give our managers the capacity to handle such situations. When hiring managers, we must allow them the authority to make decisions. They should be supported if they choose to waive a late fee to avoid upsetting a good tenant. If their decision is not aligned with our policies, we should explain our reasoning and indicate how we would prefer similar situations to be managed in the future.

A critical point to consider is that self-storage customers are not self-storage experts. Some may think their long tenure—even over ten years—entitles them to change policies or procedures, such as waiving late fees. However, these policies are in place for a reason, and just because someone has been a customer for a long time does not exempt them from these rules. If management contradicts a manager’s authority by waiving fees, it undermines that manager’s position.

I always strive to listen to both sides of a situation before intervening and, again, try to remember that customers are not always right. I want to understand the customer’s perspective while respecting management’s rules. If I find a mistake, I will discuss it with the manager first and ensure we rectify it. This approach reinforces that while customers have a voice in the property’s operations, management must maintain control over the rules and procedures.

Let your manager have some latitude in managing general rules and policies. Give them some leeway to make decisions. For example, if they can waive the first late fee for a customer who has been with us for 10 years, they should have the authority to do so. They need to understand both what they can do and what they cannot.

If there are ongoing issues, we need to address them. For instance, if a tenant isn’t following the rules and we must keep reminding them to comply, I suggest increasing their rent by $50 a month. If the situation does not improve, we could raise it by $300 monthly to encourage them to leave. Additionally, we can limit their access to the facility to the hours when the office is open.

We don’t want every customer.

There are specific operations criteria we need to uphold, especially concerning tenants. I used to think that any customer would do, and I was happy to take everyone. Now, as I’ve grown older and wiser—okay, maybe a lot older and a lot wiser—I understand that accepting every customer’s behavior indiscriminately is inappropriate.

It’s essential to recognize that problematic self-storage customers risk their own safety in these spaces—like when they leave a heater on—and put other people’s belongings at risk. They need to find a more suitable place to conduct their activities. We must take action to prevent these risks. This could involve changing access hours, locking units, and enforcing stricter rules.

Another issue is the messes created when customers use the space for their business. For instance, landscapers sometimes store their equipment in a 10×10 unit but leave behind clippings and debris outside. After they finish, their employees often leave the area messy, which we must address.

I also had an experience in California with a newspaper company that stored papers with us. They would bring in large amounts of paper each day, and unfortunately, they often left discarded documents strewn across the lawn. Although we provided them with 24-hour access to three 10×30 units, their daily mess was a significant issue. My manager would spend 45 minutes each morning cleaning up after them. That was not acceptable.

To address the situation, I reached out to them, and we arranged for them to clean up after using the space. We also provided them with some essential sweeping tools to assist with this. Implementing these changes required additional resources to manage, but it was necessary for maintaining the property’s standards.

One Bad Apple…

My dad used to say, “One bad apple ruins the barrel.” I recently realized the truth behind this proverb: just as one bad apple can spoil others, we must show no tolerance for sin or wrongdoing. This is especially evident in self-storage facilities, where we often encounter poor behavior.

Sometimes, it’s clear that it isn’t just one person acting irresponsibly; it may be a customer not following the rules and another customer thinking, “Yeah, I can do that too.” This behavior encourages others to do the same, leading to a messy situation.

Addressing this behavior early on is essential as it worsens over time. We should provide written warnings to customers and impose charges if the issues persist. I have reviewed camera footage and noticed problematic self-storage customers leaving large items behind when they move out.

Disposing of these items is not easy, and the dump will likely impose a disposal fee, ultimately costing us money. We must enforce the rules to prevent this situation from escalating.
If you have rules, make sure to enforce them.

Document all issues you encounter in your storage software, including taking photos of any damage or unsightly situations. For example, I’ve had instances where people let their dogs relieve themselves on the property, and I’ve taken pictures of those areas. It may not be pleasant to see, but it’s essential to include that information in their files so we can monitor what’s happening.

Checking the cameras can help identify the offenders, so be familiar with how to use your DVR system. Often, my managers aren’t sure how to operate it, but I can show them, and it turns out to be kind of interesting to review the footage. Remember, managers have detective duties, too!

We Don’t Do Everything Right

My managers and I have faced challenges with our processes. Sometimes, we accidentally overlock units after customers have paid or mistakenly overlock the wrong space, thinking it belongs to someone who should be in delinquency when they shouldn’t. We’ve also forgotten to remove company locks from units after they’ve been rented out.

One incident cost me more money than any other. I had to pay for a truck and additional help because customers were waiting. They had to keep the car over the weekend, which cost me over $1,000 in Northern California. 

I decided to cover these costs because it was the right thing to do. Many owners might not have taken the same approach, but I didn’t want to cause any harm to our customers. My manager made a mistake; it affected the customers financially, and I wanted to make it right. And we did.

It’s vital to double-check details like gate codes. Always verify that the customer knows the correct code and that you have accurately recorded it, as sometimes the information in our system does not match what is on the card given to the customer. I recommend reviewing the codes with the customer to ensure they know how to use them properly.

We’ve also encountered problems, such as applying checks to the wrong customers. For example, there have been instances where we marked a payment under the name Smith, but it was a different Smith. The customer would come in, insisting they sent in their payment, which had been cashed but was recorded under the wrong unit number. When this happens, we always strive to make things right with the customer because we acknowledge our mistakes over time. 

During the COVID-19 pandemic, it was hard to tell whether some people were opportunists or genuinely struggling. I’ve been working with a call center and have heard some interesting stories. For instance, one lady claimed she had COVID and could barely speak. However, by the end of our 4 to 5-minute call, she was yelling at the representative. Her tone was completely different from how she started the conversation. 

This raises a broader question: what are you willing to do in these situations? For instance, offering a free month of service might make sense, or you could consider letting someone move out while still owing money. Skipping the auction and allowing them to retrieve their belongings may also be an option. 

I know that might sound extreme, especially if you’re thinking about cleaning out the space or how to make it profitable again. Sometimes, it’s better to let the individual take their things. If they say an extenuating circumstance has affected their situation, you could ask, “When can you come to pick it up?” If they can retrieve their items within the next five days, you could then forget the debt entirely and re-rent the space.

Of course, some owners might be upset about this approach. However, waiting for a resolution can be unproductive. In some cases, the items left behind may not be worth anything, or they may only fetch $20 or $25 because of the effort involved in cleaning them out. After waiting so long for a minimal return, pursuing the debt might not be worth the hassle. 

So again, consider what you are willing to do. Perhaps offering a free month and allowing them to collect their belongings might be the best solution. Any of these options could work.

Finding a balance in handling problematic self-storage customers can be challenging. Such customers often complain and are rarely satisfied. However, it’s important to proceed cautiously to avoid any legal trouble. The approach to resolving these issues can depend on their severity. It’s essential to find a solution while maintaining balance. If a situation becomes too heated or stressful, consider discussing it with your supervisor or someone else for guidance. You might ask, “What should I do about this situation?” It’s not always straightforward.

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