How Smart Lock Systems Drive ROI for Self-Storage Operators
The self-storage sector is often praised for its simplicity, scalability, and consistent returns. But beneath this dependable business model lies a growing push for transformation – one driven by the need to embrace technological advancements that enable better service, monitoring, and data driven decision making.
In response to rising tenant expectations and operational demands, storage operators are increasingly turning to systems that can facilitate daily operations, improve management and reporting, and enhance both security and customer experience. One of the most rapidly adopted technologies is the smart lock system – offering keyless access, fast remote monitoring, and greater control.
This article breaks down the numbers, trends, and financial realities behind smart lock systems adoption to uncover what it really means for your bottom line.
Rethinking the Self-Storage Business Model?
Self-storage has long delivered strong margins with minimal complexity. Many facilities operate at 60 – 70% gross margins, with NOI (Net Operating Income) often exceeding 35%,
making it one of the most profitable real estate sectors.
But rising labor costs and evolving tenant expectations are reshaping the game.
Customers now demand 24/7 access, digital convenience, and seamless service. At the same time, operators face pressure to control expenses and scale across locations.
Smart lock systems are becoming a strategic solution – offering not just modernization, but measurable financial upside in a changing market.
Smart Locks CAN Add Real Financial Value
Rent Uplift & New Revenue Streams
One of the most immediate financial benefits of smart lock systems is rent lift.
Operators routinely report 5 -10% higher rents for units equipped with smart access. Some offer “premium” units featuring 24/7 entry, app controlled access, and secure sharing options.
In some cases, facilities have reported revenue increases of up to 71% after switching to smart lock systems.
Other monetizable services include:
- Guest pass pricing
- Open – unit alerts
- Time – restricted access
Reduced Operating Costs
Smart lock systems are designed to minimize human intervention.
Automated overlock systems mean staff no longer need to physically secure delinquent units.
Remote access management cuts down on site visits.
Fewer lock replacements and no key handoffs save both time and money.
Depending on scale, these changes can result in thousands of dollars saved per year, per location.
Scalability & Centralized Management
As operators expand their portfolios, smart lock systems allow leaner teams to manage more locations. With cloud – based dashboards, one manager can monitor activity, issue access, and respond to alerts across multiple sites without being physically present.
This opens the door (pun intended) to scalable, unmanned, or semi automated storage models.
The CapEx Question
Capital expenditures (CapEx) refer to the upfront costs of acquiring or upgrading physical assets that provide long – term value.
In the context of self-storage, CapEx includes investments in facility upgrades, such as access control systems, that can enhance both operational efficiency and tenant satisfaction.
For many operators, the idea of installing smart lock systems may initially seem like a large capital outlay. However, the financial benefits over time make it a strategic asset rather than a sunk cost.
Smart lock systems have matured significantly. Platforms like Lockfinity are retrofit ready, meaning they can be mounted directly onto existing storage unit doors with no structural modifications or electrical wiring required. This minimizes both the installation cost and disruption to ongoing business operations.
Another common CapEx concern is maintenance, particularly related to battery replacement. Lockfinity addresses this with replaceable battery modules designed to last 7-10 years, which dramatically reduces the need for ongoing service visits or labor allocation.
When the initial investment is spread over a projected decade of usage, along with the added revenue from premium pricing and savings from reduced labor, the ROI becomes both measurable and compelling.
For forward – thinking operators, this CapEx is less a risk, and more a revenue enabling foundation.
Investing in the Future of Self-Storage
Smart lock systems are no longer early – stage innovations, they’re becoming increasingly popular among both facility owners and tenants looking for greater convenience, efficiency, and control.
This transformation is not theoretical, it’s playing out in real time. A compelling example of this shift is 10 Federal, a leading operator of fully automated facilities, which recently exceeded its $100 million fundraising goal to expand its unmanned, technology – driven model, despite economic headwinds. (Modern Storage Media, April 2024).
These long – term strategies are built on efficiency, scalability, and strong revenue potential.
It’s not just large players leading the charge, operators of all sizes are embracing retrofit – ready systems like Lockfinity to modernize their self-storage facility without disruption,
deliver a better tenant experience, and unlock new revenue potential. In many competitive markets, the ability to offer digital, app based access and remote monitoring has become a powerful differentiator, one that not only attracts more tenants but justifies premium pricing.
The takeaway? The facilities that embrace smart lock systems now are positioning themselves ahead of the curve. Those that wait may find themselves playing catch – up as tenant expectations, investor standards, and tech adoption rates continue to accelerate.
For self-storage owners and operators, investing in smart lock systems is no longer just about staying current, it’s about setting your business up for long-term success. As technology becomes a deciding factor in tenant satisfaction and operational efficiency, Lockfinity offers a unique opportunity to evolve without disruption.
Our retrofit ready solution requires no maintenance, fits any existing door, and installs without downtime, empowering you to modernize confidently and cost – effectively.
If you’re exploring ways to improve revenue, reduce overhead, and offer your tenants a better experience, this is your moment to act.
