How to Make Money with Self-Storage

Americans have more stuff than what they know how use. This means they have more stuff than they know how to use. This fundamental need forms the backbone for the self storage industry. Although there is a need for self-storage, it doesn’t necessarily mean that it’s easy or simple to fill it. Self-storage may seem simple, but it is much more complicated than that. There are many important issues you need to know and address, check this.

The Right Type Of Facility

Over the last 40 years, self-storage facilities have come in many forms. But those which are classified as “Generation One”, (or “Generation Two”) are the most profitable. It is vital that all units which can be rented be located on ground level. They are also equipped with roll-up doors, which allow vehicles to access the units. Why? Study after study proved that self-storage tenants need the ability to park right at their doors, roll up their stuff and move it inside. Units on the second and third floors are more in-demand. There is no reason anyone would want to have their stuff carried down a hall or climb an elevator just to get to their unit. These types of facilities didn’t exist. They were created by selfstorage developers to justify building additional units on more expensive land.

Multi-story buildings turned out to be a disaster. So has “climate control” units. Most items Americans have in their homes aren’t enough valuable to heat and cool. Most of today’s climate controlled space is empty. California’s inventions in wine-storage units are the worst. Recently, I saw a facility with just 20% occupancy for wine storage. This concept is being replaced by inexpensive wine refrigerators, sold at Costo or other retailers. You should also remember that “climate control” areas can prove extremely costly to manage.

The Right Type Location

It is important for self-storage units to have excellent street visibility. These are the attributes shared by America’s most successful self storage units. Americans are more likely not to rent space in storage facilities they don’t see often enough to decide whether or not they want to rent. A self-storage space in an obscure area with poor visibility will not attract anyone to rent it.

You should remember that self-storage has a high competitive edge in most markets. Your facility should have the basic skills necessary to compete. While we love stories about underdogs winning like the one-handed baseball pitcher, it is easier and more enjoyable to win when your facility does not have any disadvantages.

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