Home >> Businesses >> Buy A Self Storage Business
Many people have noticed that it's a buyer's marketing with real estate prices at all time record lows.
The economy is in a state where many people need at least one additional source of cash flow, and
starting or investing in a self storage facility may be the right option for those
needing this extra income. Moreover, starting or investing in mini storages may be the boost
your company needs in order to see an overall increase in profit. Self storages are becoming more popular
each year, and catching the market at just the right time can mean the difference between success and
failure for mini storage starters or investors.
Operations Experience Is Important For Starting A Self Storage Business
However, potential business owners wishing to start or invest in a self storage facility should have
some working knowledge of how to run that type of business. Operations experience is a very big bonus,
and almost a requirement for success. There is also a basic understanding of the business and the time
to learn the area and fill up units required for financial achievement. Self storage facilities do not
usually fill to rental capacity overnight, and sometimes it takes years for mini storages to begin to see
a substantial profit. Monthly dues must be paid, renters must be found for empty units, and utilities for
the building(s) must be kept up to date. This includes lighting, heating and cooling (especially for climate
controlled buildings), security costs, salaries for employees, landscaping fees when applicable, and any
rent or mortgage payment for the facility itself.
Before Investing, Analyze Your Self Storage Business Opportunity
Those wishing to enter the mini storage business should strongly consider whether to start or invest
in a facility before even looking for an area to purchase real estate (land or existing buildings). Starting
a new business can be risky no matter what field the business is in, especially if the business owner has
not done the proper research beforehand. Potential business owners should look for things such as the amount
of storage available in the area (established self storage facilities), necessity of storage for the area
(high-traffic areas or subdivisions are a great place to start a mini storage facility), and similar options
before they invest or build.
Your First Self Storage Business? Find a Seasoned Partner
Many banks will not lend to someone who does not have an established record of accomplishment in that
particular field due to the risk of failure. For those with little or no experience, it may be almost
impossible to get funding without assistance from another source, such as a co-borrower. Consider going
into the business with an experienced partner, or team of partners. Those joining with a team of partners
should look for business-savvy people to join with, or with partners that are very experienced in the
self storage business (at least in certain aspects, such as daily operations, accounting, or overall
business experience). Use the combined experience to make the initial breakthrough into real estate,
and build on that purchase.
Self Storage Means More Income In Your Pocket
Starting or investing in a self storage facility is a great idea for those who can find the capital and
have the necessary experience. Mini storages are becoming more popular each year, especially in large
areas or in areas that are more densely populated. This is an excellent source of income for first-time
business owners or experienced business management specialists. Self-storage facilities and mini storages
can be a great income or additional income. Business owners can consider making the self storage business
their primary source of income (when feasible) or use the income as a secondary source of income in addition
to their regular full-time or part-time jobs. There are very few people in the world who do not need any
additional income, and many should consider starting or investing in a mini storage business while the market
is geared toward buyers instead of sellers to get the best price on existing facilities and great interest
rates.
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