People First, Profits Follow: Universal Storage Group’s Winning Philosophy for 30 Years of Self-Storage Growth

Universal Storage Group (USG), a third-party management and consulting firm serving the self-storage industry for more than three decades, adheres to a people-first philosophy that drives success through service—to facility owners, tenants and employees. CEO AJ Ross says this approach is the “heartbeat” of the company, which was founded in 1993.

“By putting people first—offering competitive wages, ongoing education and opportunities for both personal and professional growth—USG empowers its team to deliver best-in-class customer service,” Ross says. “When people are cared for, they take care of customers, and in turn, clients and property owners succeed.”

Ross firmly believes the company’s people-centric focus is the powerful force behind its longevity. In fact, it was part of the corporate DNA from the very beginning. In 1993 Anne Ballard teamed up with Norma Taylor to cofound what was then known as Universal Management Co. In 2012, A.J. Ross partnered with Ballard and Albert Heyward by merging Universal Storage Management with Heyward’s company, RES Management (which later became part of The Heyward Group), to form USG.

Known in the self-storage industry as “The Hat Lady,” Ballard built her reputation as a marketing pioneer. She retired last year. Heyward was hailed for his expertise in construction and cost-efficient operations. He passed away in 2022 at age 76 after a short battle with cancer.

“What tied these leaders together was a core belief in people,” Ross says.

Working With Owners

USG now has more than 160 employees on its roster and 100 facilities for which it provides management and consulting services. These include:

• Staffing: Hiring, training

• Revenue management: Expenses, pricing analytics

• Marketing: Branding, tracking, return on investment

• Financials: Reports, taxes, five-year pro forma projections

• Technology: Security-system management, software procurement and maintenance

• Development: Consulting, feasibility studies, and facility upgrades, repairs and expansions

Since its founding, USG has won 14 “Facility of the Year” awards on behalf of the owners it serves, which Ross attributes to the company’s laser-like focus on the customer experience. “We believe in—and deliver on making the experience as pleasant as possible for our tenants—that includes spotless restrooms, simplified paperwork, self-service beverage stations and wide-drive aisles, too,” Ross said. “For our management clients, we are all about relieving the burden of day-to-day operation.”

But the awards aren’t the only indicator of the company’s success. Over the past few years, newly developed facilities managed by USG have reached 85% occupancy in just 22 months on average. Existing properties that sign on with USG also achieve an average of 20% to 30% revenue boost within 12 to 18 months of contract signing. “USG is an industry turnaround expert,” Ross says. “Our proven model drives growth for even the most mature properties.”

“Our success is tied to ensuring that our clients make the best investments and that our pro forma financial modeling is as accurate as possible,” says David Dixon, chief operating officer. “We take our time and years of experience to get it right.”

The company also adheres to best practices that set it apart from competitors. For instance, USG takes an out-of-the-ordinary approach to feasibility studies and site evaluations, according to Sarah Beth DeFazio, vice president of sales and development.

“Unlike many others offering desktop or AI-based assessments, USG always conducts market studies by visiting the proposed location and all of the local competition. We believe this gives us the best input in developing a five-year pro forma projection for our clients,” said Lou Barnholdt, also a vice president of sales and development.

In addition to differentiating itself with people-driven tactics, USG stands out in the crowded self-storage management market by enabling current and former clients to chat with prospective clients, so they can get a feel for the company and how it does business.

Supporting Staff

Once someone takes a job with USG, they tend to stick around. The average corporate-office employee has a tenure of 16 years, which is a rarity in the self-storage business, Dixon notes. The company’s compensation package and training opportunities help cultivate team loyalty.

Chief financial officer Andy Shobert proclaims the company offers the most competitive compensation and benefits in the industry, including health insurance that’s partially covered by USG and a 401(k) plan. These, paired with a people-first work culture, contribute to staff satisfaction.

Attracting and retaining top-notch talent is vital to delivering solid results for management clients and high-quality customer service for self-storage renters, Shobert adds. Facility managers are often lifelong residents of the communities where they work and friends or neighbors with many of their renters. Their intimate familiarity with their markets breeds success.

“While we could take a short-term view and cut expenses for owners via fully remote management, we believe that human-led facilities generate the best owner returns and make tenant longevity possible,” Shobert adds.

It’s because of this believe that USG invests so much in employee-training programs. New hires go through a three-week, in-person course supplemented by monthly video modules on policies and procedures. There’s also a training library available 24/7.

In addition, the company hosts an annual meeting in February that includes a training workshop for all corporate and in-the-field staff. An awards banquet recognizes top-performing self-storage facilities as well as managers who’ve excelled at achieving key performance indicators.

Testing Technology

During training sessions, USG employees also learn about another key aspect of the self-storage business: technology. The company has always relied on tech tools for site management, security and financial reporting. Recently, it’s begun to explore the use of artificial intelligence (AI) for training, sales, and digital and local marketing.

For example, one of the company’s goals is to convert more phone leads to leases. An AI-powered system now reviews sales calls each month to gauge performance metrics and offer feedback to managers. On the marketing side, USG leans on tried-and-true strategies, but it also uses AI-enabled initiatives including “connected” TV campaigns, says Kim Hoelting, vice president of marketing and training.

Staying True

As USG looks to the future, it’s looking to do much more than to expand its portfolio, which already spans 18 states. As the company grows, it’s simultaneously concentrating on improving service while lowering costs and “staying true to our belief in people,” Ross says.

Though technology may be eroding the level of human interaction at some businesses, USG is determined to maintain its culture. “Simply put, USG is not your ordinary third-party management company. Our goal is to empower managers and to give them the tools they need to handle routine tasks quickly, freeing them to focus on what truly drives success—converting leads, marketing within their communities and delivering exceptional customer service. At its core, USG is a people-first story of excellence and growth,” Dixon explains.

John Egan is an Austin, Texas-based freelance writer and content-marketing strategist who specializes in health and wellness, personal finance and real estate. He’s the former editor-in-chief for SpareFoot (now owned by Storable) and the author of “The Stripped-Down Guide to Content Marketing.” His work has been published by outlets such as Bankrate, Experian, Forbes Advisor, Investopedia, Nareit, Urban Land, U.S. News & World Report and Wealth Management. To contact him, visit https://johnegan.net.

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