5 tech features lenders are looking for
Your property has solid fundamentals. Great location. Strong occupancy. Clean financials…
And lenders are rejecting you anyway.
Here’s why:
In 2025, banks aren’t just underwriting your numbers…
They’re underwriting your operations.
If your facility looks like it’s stuck in 2015, you might be getting rejected before the application even lands on the right desk.
No smart access?
No automated billing?
Security cameras on DVRs?
These are upgrades that many owners put off, because they don’t feel like direct money-makers…
But missing them could be a complete deal-killer if you’re looking to refinance, or get some cash to fund an acquisition or expansion.
📊QUICK INDUSTRY UPDATES
Recent Self-Storage Transactions – Recent transaction highlighted a diverse mix of strategies, reflecting a dynamic investment landscape. Buyers targeted a range of asset profiles, from stabilized facilities in slower-growth secondary markets to new developments and recently modernized properties in areas with strong demand signals. See the full report from List Self Storage.
Tech-Forward Facilities: Intelligent Units, Digital Access, & Automation – Facilities are rapidly adopting smart access (phone-based entry), automated billing, and real-time inventory tracking through mobile apps. Modern operators deploy AI-based security (biometric access, anomaly detection, license plate recognition) and touchless systems to boost both convenience and asset protection for investors and tenants alike. Details from USA Self Storage.
Hybrid Storage/Workspace Models On the Rise – 2025 marks the rise of hybrid self-storage ecosystems, intelligently designed spaces that merge secure storage with functional work environments. These dual-purpose units are tailored for solopreneurs, artisans, and micro-enterprises requiring both physical storage and an on-site operational base. Learn more at The AEC Mug.
Lenders today are asking:
“How will this operator maintain NOI when labor costs spike or competition opens down the street?”
Properties with modern tech are getting:
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Better LTV ratios (up to 80% vs. 70% for outdated facilities)
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Lower rates (0.25-0.50% difference)
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Faster approvals
One operator in Minneapolis recently added smart access and AI security for $85K.
Result: LTV jumped from 75% to 80%, rate dropped 0.375%.
On his $3.2M loan, that’s $90,000 more capital PLUS $12,000/year in interest savings.
Paid for itself in 8 months.
5 Features Lenders Look For:
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Smart Access (phone-based entry) – Lower staffing costs, detailed audit trails
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Automated Billing & Collections – Predictable cash flow, automatic late fees
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AI Security (license plate recognition, anomaly detection) – Reduced theft claims, lower insurance
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Mobile App & Real-Time Inventory – Professional management, tenant expectations
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Remote Management Capability – Operations don’t collapse if your manager quits
Your Next Move:
→ Add tech upgrade costs to your pro forma
→ Get real quotes from smart access providers
→ Highlight existing tech in your presentation
Here’s to your success,
Cody
P.S. The facilities getting funded fastest aren’t always the ones with the best locations… They’re the ones built for 2025, not 2015.