The questions owners actually ask.
Including the awkward ones. If you have a question that is not answered here, call us and we will answer it on the phone rather than send you a brochure.
Third-party management, generally
Questions worth asking of any manager you are considering, not just us.
What is third-party self-storage management?
Third-party management is an arrangement where an independent operator runs the day-to-day operation of a self-storage facility for a fee, while the owner retains ownership of the real estate and the profits.
The manager typically handles tenant communication, leasing, pricing, collections, marketing, vendor coordination, maintenance oversight, financial reporting and paying the property’s operating expenses. If the owner chooses, the management company can also pay taxes and insurance on the property’s behalf. The owner retains the net income. It converts an actively managed property into a substantially passive investment without selling it.
At what point should an owner consider hiring a third-party manager?
There are four common triggers. The property is taking more of your time than it is worth. Your on-site manager has left, or is about to, and you are facing a hire. You own more than one facility and the operational load is compounding. Or you suspect the property is underperforming and lack the tools or the time to find out why.
A fifth, less obvious one: you are two or three years from wanting to sell. Buyers underwrite the numbers, and a professionally run property with clean records and a demonstrated NOI trend sells for more than one with informal management and patchy books.
How much does third-party self-storage management cost?
In this industry, management is generally charged as a percentage of gross revenue, subject to a monthly minimum, with a separate marketing fee and a one-time setup cost to bring the property onto the manager's platform. Some managers charge a flat monthly fee instead, which tends to favor larger properties and penalize smaller ones.
Our fee structure is straightforward and we will put it in writing early, priced against your actual revenue rather than a generic table. It is worth asking any manager for the total cost including setup, software, and anything charged at property level, because headline rates and all-in costs are frequently very different numbers.
Are there drawbacks to using a third-party manager?
Yes, and you should weigh them. You give up direct day-to-day control, and you are trusting someone else's judgment on pricing and tenant decisions. The property will be operated to the manager's standards and systems, which usually means adopting their software, their signage and their brand. There is a real cost, and on a very small facility that cost is a meaningful share of revenue.
The arrangement makes sense when the operational lift and revenue improvement exceed the fee. On a well-run property that is already optimized and where the owner enjoys running it, it may not. We would rather establish that early than three months in.
If a manager cannot answer a question about fees, term or reporting plainly, that is information.
Working with Arborstone
How our agreement, our fees and our onboarding work in practice.
Are you a management company, or an owner?
Both, and the combination is the point. Arborstone 3PM is a management company — it is a real business with people accountable for your property, a management agreement, monthly reporting and a fee. Arborstone also owns and operates self-storage facilities of its own.
60+ properties across Oklahoma, Texas and Arkansas run on our platform today, some ours and some belonging to owners who hired us. That matters for two practical reasons. First, we built the operating platform ourselves to run our own properties, so you are not paying for a service layer on top of software somebody else sells. Second, every operating decision we would make on your property is one we have already made on our own, with our own money exposed to it.
What is the hybrid option, and do I have to choose upfront?
Hybrid is an optional layer of onsite, physical-touch service added on top of remote management: scheduled property walks, sidewalk and grounds checks and similar work, performed on the property by a vetted local contractor against a standardized checklist. These are additional services, billed separately and scoped to the cadence and the work you want — they are not part of the base management fee.
Two things people sometimes assume are hybrid-only are not. A dedicated asset manager and a monthly owner review of financials and KPIs are included as standard in remote management, on every property we manage.
You do not have to decide upfront and you are not locked in either direction. The hybrid layer can be added at any time and removed at any time. We will tell you honestly whether we think your property needs it.
Is my property a good fit for Arborstone?
We evaluate properties across every part of the lifecycle — initial lease-up, stabilizing, and mature operations — and we manage properties at all three. What we are really looking for is an owner who wants to step back from daily operations and a property in or near our footprint across Oklahoma, East Texas and western Arkansas.
Different stages need different work, so every property is scoped and priced on its own operating requirements rather than off a standard table. A property in lease-up needs lead generation and unit-mix attention; a mature property usually has more to gain from existing-customer rate management and expense discipline. Tell us where yours sits and we will be straight with you about what we would do and what it would take.
What does it cost to set up, and what do I own afterwards?
Setup covers bringing your property onto the platform: the control unit and its installation, gate and camera integration, migration onto our facility management software, a property page on our website, and an interior sign package. Exterior and marquee signage is scoped separately because it varies by property.
You do not have to pay it as a lump sum at the start. The cost can be spread over the first twelve months of the agreement at no interest, which keeps it off your opening cash position — or you can pay it upfront if you would rather. It is your choice, and the flexibility is the point. Signage carrying our brand, and the control unit and related proprietary equipment, remain our property and are removed if the agreement ends. Anything you owned before — your domain, your Google profile, your customer relationships — remains yours.
How long does it take to transition a property?
We generally want to begin at least thirty days before the go-live date. That window covers system migration, signage, hardware installation, staff and vendor transition, banking setup and tenant communication.
If you are exiting an existing management agreement with a notice period, we can work to a longer timeline — thirty, sixty or ninety days — so the transition lines up with your notice rather than leaving a gap. We prefer a mid-month go-live because it makes the first billing cycle cleaner.
Will my property be treated the same as the ones Arborstone owns?
It runs on the same platform, the same call center, the same pricing discipline and the same facilities team, and it is held to the same property, life-safety and brand standards we apply to our own facilities.
A management company that owns nothing can promise you their best effort. We are structurally unable to build a system that is good for us and bad for you, because our own money runs through it.
How do tenant protection revenues work?
We make a tenant protection or indemnity program available to tenants at the property. The economics depend on your situation: whether you already have a program in place, and what share you were receiving from it.
Where an owner has no existing program, we put one in and the share reflects that we are building it from scratch. Where an owner already has one and is receiving a share, we will work to improve it. It is set explicitly in the management agreement rather than left vague, and we will discuss it openly when we put a proposal together.
Who decides how my money gets spent?
Routine operating expenditure, recurring costs, utilities, taxes, insurance and genuine emergency repairs are handled without waiting on you, because a property that stalls waiting for a signature costs you more than it saves.
Any single non-recurring expenditure above an agreed threshold requires your written approval. Capital projects are discussed and approved separately on their own terms. You will always be able to see what was spent and why through the monthly financial statement, with expenses reviewed transparently during the monthly owner review.
What happens to my staff if you take over?
This is a genuinely difficult part of the conversation. Our model does not use full-time on-site managers, so in most transitions the on-site role goes away. That is a large part of where the cost saving comes from.
How and when that is handled is your decision as the employer, and we will work to whatever timeline you need. Where we take on a property with a hybrid arrangement, there is sometimes a role for a local contractor doing scheduled site attendance, and a former on-site employee is occasionally right for it.
How long is the agreement, and how do I get out?
The agreement runs for an initial term and then renews, with notice provisions for either side. The specific term and notice period are set out clearly in the proposal, and we would rather you read that section carefully than skim it.
We do not think long lock-ins are how you keep a client. If the property is performing and the reporting is good, you will not want to leave. If it is not, a contract will not save the relationship.
What happens to my signage and website if the agreement ends?
Your property would be operating under the Arborstone brand, so on termination the branded signage comes down and the property stops holding itself out as Arborstone. There is a grace period to make that change and we will not leave you exposed.
Pre-existing domains and accounts you owned before the agreement remain yours. Pages, content and systems we built during the agreement remain ours. Your tenant and financial records are yours, and we will cooperate with a transition to another manager or to a buyer.
Do you manage properties outside Oklahoma, Texas and Arkansas?
Our footprint is Oklahoma, East Texas and western Arkansas, and there is a real operational reason for it: properties within reach of an existing Arborstone facilities route are cheaper and faster to serve, and clustered properties reinforce each other's local search presence.
That said, we would rather have the conversation than turn away a property on geography alone. If you are just outside the footprint, tell us where and we will be straight with you about whether we can serve it properly.
What is a facility performance review, and is it really free?
You send us twelve months of financials and a rent roll. We return a written analysis of where the property appears to be leaking revenue or overspending, roughly what each item looks worth, and what we would leave alone.
It is free and there is no obligation. The analysis is yours to keep and use whether or not you ever hire us — including to fix the property yourself. We offer it because it is the fastest way for both of us to find out whether we can help.
Still have a question?
Call (918) 512-1833 or email partner@arborstonestorage.com. You will get a person who knows the answer, not a form response.
Why Arborstone
What changes when the company managing your property also owns and operates its own.
Read more →Remote vs. onsite
What a remote operating model costs, and what it replaces.
Read more →Free facility performance review
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