How To Buy a Self Storage Facility Properly

A mini storage facility can be a difficult purchase, especially if you’re looking to make a profit. There have been some key traits that have helped to separate winners from losers over time. It is very difficult to break this genetic code.

Many people will tell how to buy self-storage facilities. In order to sell books, courses or boot camps, they may even offer advice. However, they have very little to no experience. These concepts are based on real-life experience – and a lot of it – as a result of operating one of largest industry websites. This information may be different than what you’ve heard.

Within 3 miles of this facility are approximately 50,000 residents.

It’s a myth that you can create a self-storage facility anywhere in the world and fill it up with stuff. Self-storage depends on people. People who have to store their stuff. There is no demand if there is not enough population. In a small town with 5,000 residents, it is impossible to build or purchase a self-storage unit and make money. It is important to have a high population density.

Traffic count exceeds facility of 25,000+ cars each day.

Most self-storage customers discover their storage space by driving by it. It’s a major decision point. It is not common for people to do extensive research about where to store their belongings. Many people simply look at convenience and go straight to the one closest to their homes or businesses. This makes it a myth to have a successful self storage facility hidden from the public or on a street with no traffic.

Median household income of $50,000

The customer must be able to spend more than $100 per month to pay storage. They will not be able to spend more if they cannot pay their rent and mortgage. To be able to store the items they have, they must have more than one item. Only those who have more money can accumulate enough material items that they need storage.

400 units and more

Self-storage facilities have major fixed expenses. The biggest is the cost of the manager. To run a complex, you need enough units. Contrary to what some may believe, you can’t run a self storage facility from a kiosk. It is impossible to run it without some form of management. Because of this, small rural complexes are always available for sale.

High barrier to entry

There is likely to be a large supply of self storage units in nearly every major American city, as well as most mid-sized markets. You should make sure that there is no future construction of self-storage units in your chosen market. If you don’t, the occupancy may not rise above a set level as there is always more inventory.

Leave a Reply

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