Without a doubt, the self-storage industry is the most profitable real-estate investment around. Start-up and overhead costs are low allowing you to quickly rebuild back the majority of your initial expenses and to start making money sooner. Consider the special tax breaks available, appreciation of your self-storage facility, and the expandability of quality steel buildings and you have a solid business every time. Less than 10% of the population is currently utilizing self-storage but the trend is growing. Baby-boomers are retiring, down-sizing, and finding they have more things than they have room for. Most people already have items they can’t store at home, like recreation vehicles, sporting equipment, collectables, seasonal items and they are still buying more.
If you allow easy access, convenient office hours, and no long-term rental agreements, self storage facilities perfect for retail, contractor, and home-based businesses. Storing business files, inventory and equipment makes up a good portion of the business in today’s self-storage market. You can tap into this market by careful planning and offering a variety of storage options, such as climate controlled storage and convenient access and location. Although self storage is a great investment, planning ahead is crucial to your success and there are many details to consider. Location, land cost, legal issues, and construction and maintenance challenges should be considered before you start spending money. Location is the most important decisions you’ll make. Choosing a site that is located on a major road, highly visible, and within budget can be very difficult.
The advantages to investing in the self storage industry are plentiful and include a continuous demand which equals constant cash flow, low operating costs, the ability to control rent by offering month to month contracts, and a very low failure rate. If you do your research and start with a good design, your self-storage business will thrive immediately. Your units may fill up faster than you ever imagined. Be prepared for quick, cost-efficient expansion in order to cash in on the ever growing demand for storage space.
In an attempt to expand, many self storage owners have begun to offer a wider range of services. This has been very attractive to potential customers. By using existing land resources to build up your product offerings, you can reach out to a new and bigger segment of customers. With a good amount of competition, you must create an additional niche to set your self storage business apart from the others. For example, if you are located in an industrial area, you might consider a shipping or mailing service. In a residential area, shipping services or a retail store may also be popular.
The potential for new business is unlimited. Adding new services begins with identifying the consumer needs, from retail products to technology-based offerings. Considering that the need for self storage remains relatively steady, adding these kinds of services will allow you to increase your revenue at a level not possible with just basic steel and metal buildings. As a business owner, you should always be aware of what the local residents and other businesses in the area need and what kinds of services your area is lacking. Talk to people and survey your neighboring businesses. Let this be your guide to determine which direction you will take your business.
The layout of your property also can help determine what additional services you might succeed in. If your self storage sits back from the street, consider adding a retail space. If your self storage is situated toward the front of the property, your land might be more suited for moving trucks or anything that doesn’t rely so heavily on impulse buying. With less than 10 percent of the population using self storage space, your business is a lucrative venture already. However, you have the potential to tap into that other 90 percent of the population that is not currently in the market for self storage.
Even diversifying existing self storage offerings, such as adding climate-controlled self storage steel or metal buildings or expanding storage to include large recreational vehicles or boats, has the potential to draw new customers and bigger profits. All businesses must look for new opportunities to grow, or they risk being sifted out by their competitors. Using your existing land and other resources, consider what additional services would be a good fit for your self storage business. Self storage units can even stay on top of the unbalanced economy. Proper planning is the key to successful self-storage investment.
