Investing in Self-Storage Units
March 30th, 2016
Even when the economy struggles, the need for storage rarely dwindles. The self-storage industry has remained strong even in tough times, and experts expect this trend to continue in the future, as you might have learned in our last blog post, which discussed the self-storage industry outlook. For this reason, amongst many others, many hopeful entrepreneurs are investing in self-storage units. If you’re interested in joining the business, check out the benefits and use the tips below for help creating a successful storage unit facility.
INVESTING IN SELF-STORAGE UNITS
Reliability. As time goes by, people continue to purchase and otherwise acquire items that they don’t necessarily need and yet are hesitant to throw away. In addition, as families transition from location to location, they need a place to temporarily store their things. These two truths crate a solid footing for most self-storage facilities. Even if a recession rocks the country, most households will still need storage space.
Cash Flow. Once people rent storage units, they are often reluctant to remove their items and return the rental space. Turnover is less of an issue than you might expect, which means the cash flow is quite stable. Plus, due to the large number of rentable storage units in most facilities, owners are not as vulnerable to swings in vacancy rates.
Little Maintenance. Storage facilities require little maintenance overall. When a tenant vacates a storage unit, the space must be swept and prepared for the next renter, but this is a fairly quick task. Managers will also need to handle new leases, market the business, and supervise security guards.
- Consider your competition carefully. In some areas, investing in self-storage units would be unwise due to a lack of interest. Be sure that there is room for another storage unit facility in your town.
- Don’t attempt to create a successful storage facility on a very small scale. In a bigger complex, the cost per unit lowers and it is easier to achieve good cash flow.
- Choose your location prudently, considering the locations of nearby self-storage facilities and your potential customers. Your location can significantly impact the success of your business.
- Hire a trustworthy, reliable, and dedicated manager. If you will not be managing the facility yourself, be sure to choose the right person for the job. This decision will make or break your business.
- Examine the structure before making your purchase. Problems caused by deferred maintenance like leaky roofs or mold can be costly and stressful to repair.
- Be prepared for the work. Some people purchase self-storage facilities without realizing what their investment truly involves. Hiring a manager to answer the phone and man the office isn’t enough; you will also need to tackle issues like revenue management, online marketing, maintenance, and security.
So what do you think? Can you handle the responsibility?If you need extra storage space in southwest Missouri, Eastway Storage Center would be happy to accommodate your needs. We are proud to boast high-quality storage facilities, a helpful staff, and a convenient location just off Highway 65. Check out the sizes and pricing of our climate-controlled units to learn more about our services. Then, give us a call at 417-864-7867 or contact us online to speak with one of our friendly representatives today!