Self Storage is surely to be one of the most leading growth industries in the world – It all started back in mid 90’s where the demand for residential and commercial storage had an increase so high that the need for facilities that supply it experienced a phenomenal growth rate!
Since we now know that it’s much of a profitable business, the ONE question that’d arise to all self storage investors would be: should you build a storage facility or buy an existing one?
There’s never a proven answer to this, be it any of the choices – You are still going to spend the first year understand your business flow and make the needed changes to streamline how you manage all. It’d involve a lot of homework that you ought to do, but it would save you a ton of time and money in the long run.
It’s said that a self storage facility with 40,000 net-leasable square feet, in a market with $9-per-square-foot annual rents, will generate $450,000 in gross annual rents at 100 percent occupancy. Other income is derived from late fees, retail sales, administrative fees, truck-rental commissions, etc., and usually accounts for additional income of 5 percent.
Your Project doesn’t just end with the Construction of the site, there’s still more of a Setup cost that’s to be involved; That being said, you’ll still have to make sure you can afford all these extras while making the project economically feasible.
Here’s what your Self storage business would need after the Construction Phase,
1 – Security
Tough fences/ one all-purpose gate/Security Gates Access System/Video Surveillance
2 – Defining your brand
It’s a tough world and to compete better and be found among locals, it’s crucial to let people know your storage brand
3 – Establish a web presence
Besides being listed in directories, it’s essential to promote your brand with your own Self storage website and build more traffic to it. Living in a world of Millennials being our potential tenants we have to be found over their mobile phones.
4 – Map out your marketing strategy
A final essential element in your business planning is developing a clear and comprehensive Self Storage marketing strategy. Something that’s to scale with your business and has proven results over each quarter, driving better rentals and Inquiries!
5 – Automation | Make things easier for YOU at work
Being a great entrepreneur is all about the balance of work and life, Most successful entrepreneurs adapt themselves and the business in using technology that reduces the amount of work and time spent upon managing Self Storage facilities; Software’s that could change the way you work and create a better experience for your tenants in choosing your business!
6Storage offers you all the above 5 Essential Needs at the Most Affordable Price in the Market!
Are you a new facility owner? Talk to one of our Self-Storage Consultant for some Insights