Tech-Enabled Self Storage Investing with Jonah Hall

Self-storage investing has long been a popular strategy for building wealth in the real estate industry. However, Jonah Hall, an experienced self-storage investor, has taken this strategy to a whole new level by incorporating cutting-edge technology into his properties.

In a recent interview, Jonah shared his insights on the benefits of converting existing properties into climate-controlled self-storage and the incredible impact that technology has had on his operations.

Key Takeaways

• Converting existing properties into climate-controlled self-storage offers several advantages, including prime locations, higher quality buildings, and cost and time savings.
• Jonah’s tech-enabled management approach allows for remote operations, streamlined customer service, and increased security.
• While the technology may be ahead of the market in some cases, Jonah is focused on building a scalable model that will appeal to potential buyers, such as REITs, in the future.

The Adaptive Reuse Model: A Winning Strategy

Jonah’s self-storage investing journey began with an adaptive reuse project, where he converted an empty building into a climate-controlled self-storage facility. This approach offers several benefits that make it an attractive investment strategy.

First and foremost, these properties are often located in highly populated areas, providing a built-in customer base. Additionally, the existing buildings are of higher quality compared to ground-up construction, with features like brick and mortar construction and HVAC systems already in place.

Finally, the cost and time savings associated with conversions make them a cost-effective option for investors.

Analyzing Supply and Demand: A Data-Driven Approach

Determining the supply and demand dynamics of a self-storage market is crucial for successful investing. Jonah and his team have developed an in-house development team that conducts thorough market studies and underwriting to identify potential conversion opportunities. They focus on markets with limited climate-controlled self-storage options, ensuring that there is a demand for their properties.

By analyzing competition, population, and other factors, Jonah is able to make informed decisions about where to invest.

Overcoming Challenges: Entitlements, Titles, and Environmental Issues

Converting existing properties into self-storage facilities comes with its fair share of challenges. Jonah has encountered issues such as entitlements, title problems, and environmental concerns.

However, he has developed strategies to address these challenges effectively. For example, he has a former title attorney on his team who can negotiate with title companies and resolve any title issues that may arise.

By conducting thorough due diligence and working closely with experts, Jonah ensures that his projects are viable and free from potential legal complications.

The Power of Remote Management and Technology

One of the most significant aspects of Jonah’s self-storage model is the integration of technology into his operations. By leveraging a comprehensive tech stack, including digital locks and online rental processes, Jonah has been able to streamline his operations and offer a self-service experience to his customers.

This approach allows for remote management, reduces the need for on-site staff, and provides customers with 24/7 access to their units. The technology also enhances security by automatically locking out delinquent customers and overlocking empty units.

The Future of Tech-Enabled Self-Storage

While Jonah’s tech-enabled approach may be ahead of the market in some cases, he is confident that the industry is catching up. He believes that the increasing acceptance of remote management and the standardization of technology will make his properties more attractive to potential buyers, such as REITs.

By partnering with industry-leading software and hardware providers, Jonah ensures that his tech stack is transferable and adaptable to future advancements. Ultimately, his goal is to build a scalable portfolio of tech-enabled self-storage facilities that will appeal to a wide range of buyers.

Jonah Hall’s innovative approach to self-storage investing showcases the power of technology in the real estate industry. By converting existing properties into climate-controlled self-storage and incorporating cutting-edge technology into his operations, Jonah has created a scalable model that offers numerous benefits to investors and customers alike. As the market continues to evolve, it is clear that tech-enabled self-storage is the way of the future.