How to buy a self-storage unit properly
Mini storage facilities can be expensive, especially if you want to make a good profit. Some key traits have helped to distinguish winners from losers over the years. It is very difficult for anyone to break this genetic code.
Many people will tell you how to buy self-storage. Sometimes they will offer advice, as well as books, courses and boot camps. They are likely to have little or no industry experience. These concepts are based primarily on real-life experience. This information could be different from what your have heard.
Aproximately 50,000 residents are located within 3 miles from this facility.
It is not possible to create a self storage facility anywhere in the globe and load it up with stuff. Self-storage depends on people. People who need to store stuff. If there are not enough people, there will be no demand. If you live in a small city with only 5,000 inhabitants, it’s impossible to rent or buy self-storage units. It is crucial to have a high level of population.
Traffic count exceeds facility capacity of 25,000+ cars daily.
Most self-storage customers locate their storage space by driving up to it. It’s a major decision point. People rarely do extensive research when choosing where to store their belongings. Many people look at the convenience of the location and simply go to it. It’s not possible to create a successful self-storage facility off the streets or hidden from the public.
Median household Income of $50,000
To pay storage costs, the customer must be capable of spending more than $100 per monthly. If they can’t afford their rent and mortgage, they won’t be able buy more. It is necessary to have more than one item in order for them to be able keep their items safe. Only those with more cash can have enough items.
400 units and more
Fixed expenses are a major expense for self-storage. The most expensive is the cost for the manager. It is necessary to manage a complex with enough units. Contrary what people may think, you cannot run a self storage facility using a kiosk. It is not possible to manage it without some form. These small rural properties are always up for sale.
High barrier to entry
It is possible to find self-storage units in all major American cities. You must ensure that there is not any future construction of self storage units in your chosen area. You might not be able to increase occupancy above a specific level, as there is always more inventory.