Welcome back to Exit & Equity — the newsletter for storage operators who think in cash flow, not clickbait.

This week, I’m breaking down how AI is actually being used in self-storage — and where you’re better off saving your money.

Let’s dive in.

I'll be straight with you: I'm up to my eyeballs in AI hype. As an operator and data guy, I've seen tech buzzwords come and go. My default stance? Skepticism.

AI isn't some magic wand and I'm tired of hearing it'll "revolutionize" our industry overnight. But ignoring real, ROI-positive tools would be just as foolish as buying into the hype.

So consider this a BS-filtered exploration. I'm here to dig up what actual storage operators are using today, what's driving NOI and exit value, and what's just vendor fairy dust.

First, let’s level-set on what AI in self-storage really means. It’s not robots patrolling your facility or some sentient computer running your business. In most cases, it’s software using advanced algorithms (machine learning, natural language processing, etc.) to automate or improve tasks we’re already doing – things like answering customer inquiries, setting prices, monitoring security cameras. In other words, it’s an extension of the automation trend we’ve been part of for years.

Why is this coming up now? A few reasons. Competition is rising and margins are tightening, so we’re all looking for an edge. At the same time, the tech has matured and become more accessible. What used to require an in-house engineering team can now be had via third-party tools. Plus, there’s growing evidence that many of our peers are experimenting with AI. Even historically slow-to-tech self-storage is feeling the push to get smarter, fast.

That said, let’s be clear: most of the wild AI hype doesn’t really apply to running a storage facility. We’re a hyper-local, people-centric business at the end of the day. Someone still has to physically clean units, walk the property, and provide that personal touch to tenants. AI is a tool to help us do more or do it faster, not a replacement for good management. Keep that perspective in mind as we dive into use cases.

What it is: An AI-powered voice agent that answers your facility's phone 24/7, handles inquiries, and books units. Instead of calls rolling to voicemail, AI picks up on the first ring at 2 AM, ready to help. These systems use language models trained on self-storage to have natural conversations — answering FAQs, quoting prices, recommending sizes, taking payments.

Why it's high ROI: Missed calls = missed rentals. 38% of first contacts in self-storage still happen by phone, and 60% of customers rent from the first facility that answers. Answered calls convert at a rate 3× higher than voicemail. Yet industry-wide, nearly 40% of facility calls go unanswered.

By ensuring 100% call answer rate, AI agents capture every lead. You save on payroll or call center fees (one service advertises 90% less than traditional call centers). Plus higher occupancy from leads you're no longer losing.

Real-world example: 10 Federal introduced AI chatbots and cut call-center staff by 25% while expanding. Their AI now handles 80% of routine questions. Next Door Self Storage in Illinois uses an AI voice agent that walks callers through rentals naturally — customers often don't realize they're not talking to a human.

Implementation: Plug-and-play solutions like Lumio and Parcel integrate with common facility management software (SiteLink, storEDGE). Setup is quick — Lumio claims you can be live in 5 minutes. The AI pulls unit availability and prices from your website. You maintain oversight through dashboards with call transcripts and summaries. If the AI gets stumped, it hands off to you.

ROI: Say you miss 10 calls weekly after hours and half would convert. Even a few extra rentals monthly adds thousands to annual revenue. Save $500-$1000/month on call center costs. At a 6% cap rate, every $1,000 saved annually is about $16,000 in asset value. An AI agent directly boosts NOI by lifting move-ins and cutting expenses.

What it is: AI-driven dynamic pricing is yield management for storage units. Instead of setting rates once a year, these tools continuously adjust unit rates based on supply, demand, seasonality, and competitor prices. High demand? Prices nudge up. Slow season? Rates drop to boost move-ins. All automatic, within parameters you set.

Why it's high ROI: Pricing is the biggest lever for revenue in storage. A well-tuned pricing strategy can significantly increase income without adding customers. Studies show dynamic pricing can lift revenues by 1-8% annually; some self-storage data claims up to 9-14% in favorable markets. Even a 1-2% bump is meaningful — and every extra dollar of NOI adds $15-$20 in facility value at typical cap rates.

Real-world scenario: You normally rent 10x10 units at $120/mo and they're all full with a waitlist — classic underpricing. Dynamic pricing raises that to $140 for the next customer due to high demand. Units still fill, but now you've locked in more income. Conversely, vacant 5x5s at $50 might drop to $45 for a month to entice move-ins, then increase once occupancy recovers.

Storage Asset Management (SAM) uses AI predictive analytics to forecast occupancy and set dynamic pricing strategies, resulting in smoother occupancy curves and maximized revenue per unit.

Implementation: You might already have basic dynamic pricing in your PMS. Tools like StorTrack or Veritec integrate with systems like SiteLink and storEDGE. Define floor and ceiling rates and rules (e.g., never go below $X). The AI handles day-to-day adjustments within those bounds.

ROI example: A small facility saw 4% increase in monthly income after six months — $20k extra annually on $500k revenue. That's $20k more NOI, translating to ~$300k added value on sale (at 6.5% cap). And showing buyers you're maximizing revenue per unit strengthens your case for top dollar.

What it is: AI software analyzing security camera feeds in real-time to detect break-ins, tailgating, loitering, or equipment issues. Instead of dumb motion sensors that ping for every leaf, AI recognizes patterns and distinguishes normal activity from real threats. It sends instant alerts with video clips only when there's something suspicious.

Why it's high ROI: Theft, vandalism, and liability incidents directly hit your NOI through insurance claims, repairs, and reputation damage. AI turns reactive cameras proactive. One provider (Arcadian) calculated: cutting theft losses by $50k and reducing false alarms by 30% is equivalent to ~$847,000 in preserved asset value at a 6% cap.

Even on a smaller scale, stopping a single $5,000 burglary pays for an AI security system's annual fees. Plus, AI filters out 90% of motion detection "noise," so staff aren't chasing shadows.

Features:

Cost & implementation: $100-$300/month per facility depending on size and camera count. Compare that to hiring night security or live monitoring. Many insurers offer discounts for enhanced security, offsetting costs. Implementation usually means hooking camera feeds to the provider's system. Companies like OpenTech/Storage Defender are adding smart units with sensors to detect motion and moisture inside units.

ROI: At a 6% cap, preventing $3,000 in annual losses adds $50,000 to facility value. Over five years, that's $250,000. An operator who reduced insurance claims by $10k annually and saved $5k in false alarm responses saw their investment pay back in under a year.

Not every “AI” pitch is worth your money. Here are a few things I’d think twice about before investing in, based on my research and gut instinct as an operator:

AI Red Flags to Watch For:

At the end of the day, stick to your operator instincts. We’ve all seen gimmicks come through the trade shows. AI is newer and fancier, but the same rule applies: if it doesn’t pencil out or if it compromises what makes your business special, take a pass.

How do these AI implementations translate when it's time to sell? Buyers value the result of tech: a better-run, more profitable facility.

AI can boost your exit value if it boosts your NOI or reduces perceived risk. Commercial real estate valuations come down to cash flow. If AI increased revenue or cut costs, that higher NOI commands a higher price — regardless of the specific AI tools used.

Example: AI pricing yields an extra $10,000 NOI = ~$150,000 added purchase price (at 6-7% cap). AI call agent saves $20,000 annually = another few hundred thousand in value creation.

After cutting through all the hype: I'm cautiously optimistic about AI in self-storage. As a data engineer and operator, I love anything that gives me an edge — as long as it's grounded in real numbers.

At my own facilities, I'm actively exploring these use cases. The AI leasing agent is at the top of my list — we're missing calls after hours, and I'm evaluating options that could solve this at a fraction of what a call center would charge. Dynamic pricing is also on my radar; I've been manually adjusting rates, but I know I could be more granular and responsive with a smart system. I'm piloting options to see if they can beat my old-school methods.

On the flip side, I'm holding off on some AI ideas. I'm not rushing to install drone security or buy "AI marketing platforms" that write blog posts — those feel too fluffy or unproven in terms of direct ROI. I'd rather concentrate on blocking-and-tackling.

My advice: pick one pain point and explore if AI can address it efficiently. Missing too many calls? Try a voice AI for a month. Rates all over the place? Test a pricing tool on one property. High break-in rate? Demo an AI security overlay. Most solutions offer trials or month-to-month agreements. Measure the impact yourself.

I remain healthily skeptical of grand claims, but I'm seeing that some of this AI stuff really works when applied correctly. It's not about being cool — it's about dollars and cents. We're all trying to build long-term equity and have a nice payday at exit. If an AI tool directly contributes to that, I'm in. If not, it's just noise.

Have you implemented any AI at your storage operation? Hit reply and let me know — I'm genuinely curious to hear some operator-to-operator real talk.

What about you? Have you implemented any AI at your storage operation, and what results have you seen? Hit reply and let me know – I’m genuinely curious to hear some operator-to-operator real talk on this. Let’s keep each other informed, beyond the hype.

For a quick win this week: analyze your facility's Google reviews using AI to uncover golden nuggets (and dirty laundry) that can help you improve operations and marketing. This is a low-cost, high-insight exercise you can do in an afternoon.

What it is: Use a free AI tool like Claude (by Anthropic) or ChatGPT to digest your online reviews and extract useful insights. Your customers have already told you what they love and hate about your business. AI can quickly summarize those opinions into clear themes.

Why Claude? High character limit — you can feed in dozens of reviews at once without it choking. It's like ChatGPT, but with a bigger appetite for data.

How to implement (step-by-step):

What to expect: You might be surprised or humbled. Seeing feedback aggregated reveals blind spots. Expect to spend about an hour: copying reviews, running AI, reading results. Cost is essentially zero — Claude is free to use (beta), and ChatGPT has a free tier.

You might learn that 90% of reviewers mention feeling secure — huge selling point for your marketing. Or you might see a pattern that three people mentioned burnt-out light bulbs in hallways — time to tell maintenance.

Side benefit: Staying on top of reviews and responding quickly boosts your online reputation and search ranking. Customers heavily check reviews before choosing storage. If they see positive feedback and an owner who responds to issues, they're more likely to trust you. That leads to higher occupancy and even allows you to push rates. Google's algorithm favors businesses with active, recent reviews.

Why it matters for exit value: Continuously improving based on customer feedback boosts your bottom line. Happier customers = better reviews, better occupancy, more pricing power. When it comes time to sell, savvy buyers look at online reputation as part of due diligence. A facility with stellar reviews and a track record of addressing issues is positioned as well-run and lower-risk — maximizing your exit value.

Think of it this way: by doing an AI-driven review audit, you're investing in your "goodwill" asset — the intangible but real value of your brand's reputation. And unlike other AI projects, this one costs nothing and you can do it this week.

It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult.

— Seneca