How to Make Money From Self-Storage

Americans have more stuff than they know how to use. This means they need more storage space. This basic need is the foundation of self storage. Self-storage is not always easy to find. Self-storage is not as simple as it appears. There are many important issues to understand and address., check my reference

The Right Type of Facility

There have been many kinds of self-storage facilities in the last 40 years. However, the most lucrative are those classified as “Generation One” and “Generation Two”. It is essential that all units available for rental are on the ground floor. Roll-up doors allow for easy access by cars. Why? Study after study shows that self-storage tenants want to be able to just pull up at their unit doors and roll it up before they put their stuff in. Units located on the second floor and higher are in greater demand. Nobody wants to be forced to climb an elevator in order to reach their apartment or move their belongings down the hall. These facilities have never been invented. They were designed by self-storage companies to allow them to build more units on less expensive land.

Climate controlled units are becoming more popular than multi-story buildings. Most items Americans have in their homes aren’t useful enough for cooling or heating. Most of the “climate-controlled” space available in today’s facilities is unoccupied. California’s inventions of “wine-storage units” are the worst. Recently, I was able to see a facility with 20% occupancy for “wine-storage”. This concept has been replaced by wine refrigerators at Costo or other retailers. Important to note that operating “climate-controlled” areas may be extremely expensive.

The Right Type Of Location

The street visibility and street exposure of self-storage facilities is essential. These are characteristics shared by America’s top self storage facilities. Americans are more inclined to rent space at facilities they visit every day, and make a decision to rent. If the location is inaccessible and has low visibility, it’s unlikely that someone will rent it.

Remember that self-storage is highly competitive in most markets. Your facility must have the necessary skills to compete. Although we love stories of underdogs who win, such as the baseball pitcher with one hand, it’s easier to win when your facility isn’t disadvantageous from the beginning.

Leave a Reply

Your email address will not be published. Required fields are marked *