The Hidden Threat: how to spot, stop, and prevent employee theft at your self-storage facility

By Melissa Huff, originally published by Inside Self Storage on October 6, 2025

Have you ever reviewed your self-storage operation’s financial reports and gotten the feeling that something just wasn’t right? That nagging suspicion could be the first sign of a problem that contributes to one-third of all business bankruptcies: employee theft. Discover the hidden threat that might be happening right under your nose and the systems and processes that could save your company before it’s too late.

A few months ago, I was looking through some financial reports for a self-storage management client when something caught my eye. Nothing seemed out of the ordinary at first, but a few of the numbers just didn’t add up.

I dug a little deeper to figure out what was going on. It turns out, the issue wasn’t a bookkeeping mistake or some delayed bank deposits. The cause was something self-storage operators hate to think about, even though it happens way more often than most realize. I had uncovered employee theft, which is one of the biggest hidden dangers in our industry.

Startling Statistics

According to Forbes Magazine, 75% of workers admit to stealing from their employer at least once. The U.S. Chamber of Commerce reports that employee theft contributes to 33% of business bankruptcies. Even more concerning, the Association of Certified Fraud Examiners notes that businesses report only 43% of occupational fraud cases to law enforcement.

These figures should alarm any business owner. Given these realities, the question isn’t whether theft could happen at your self-storage facility, but when—unless you take preventive measures now.

Why Does Theft Happen?

To prevent employee dishonesty from occurring, you need to understand the reasons why someone might steal. Complacency typically sits at the heart of the problem. Many self-storage owners mistakenly believe that long-time staff are safe, that they would “never do that.” You might think, “They’ve been with me for years. I trust them completely!”

While most self-storage mainstays remain loyal and dependable, trust alone isn’t sufficient protection. It needs to be reinforced through accountability. The reality is motivators like financial hardship, personal entitlement or simply an easy opportunity can present itself at just the right moment, causing an otherwise trustworthy employee to help themselves to company funds or resources.

Team members can easily rationalize their deceptive actions by telling themselves, “Well, the facility brings in X dollars each month, they’ll never notice this amount,” or “I deserved a raise last month, this just evens it out,” or “It’s just a few boxes, it won’t even matter.” Self-storage is especially vulnerable since it can often be cash-heavy with limited oversight and is often run by just one employee. The good news is these conditions also make it easier to follow the money trail.

The Many Faces of Theft

Many self-storage facilities still accept cash, and it’s very easy to skim money from unit rentals. For example, an employee might waive a tenant’s late fee in the system but collect it in person and pocket the cash. Or they might give away moving and packing supplies in exchange for cash and change the inventory counts in the software...(read more at Inside Self-Storage)

Read more helpful articles like this by subscribing to ISS Magazine

PUBLISHED BY