Across the world, entrepreneurs are willing to invest in self-storage business extensively. The need for self-storage is increasing day by day at a fast pace. People are demanding storage space with good features. The buzz is that, investing in this business can be very profitable. As compared to other real estate business, low building and maintenance costs is drawing the attention of the business owners to invest in this field.
Several other factors such as easy start up, low risk, great profit margins etc. also add to the drawing force towards this business. Can it be really that easy? Investment in self-storage business has lot of potential but it requires hard work, patience and off course, money to start the business. Here are some of the points one must keep in mind when starting a self-storage service:
Do research and then build:
Before spending even a single penny on buying land or building construction, one need to do an extensive search into the self-storage market. Always hire specialist consultants to do research in the area of your interest. Even if you are already in the real estate business, an experienced opinion is always valuable.
Choosing a perfect location:
“Location” is everything in real estate world. If you have a good location and limited features at your facility, people will still come. But if you have a location outside the city or anywhere else, people would never waste their fuel and time to go to that place and check it out. Even if your facility is well constructed and offers more features than any local facility, people will still choose the one that is close to their area of their residence because it allows them to make frequent visits and saves considerable time too. Choosing a site is one of the most difficult decisions to make and there are many other factors that contribute in this regard, such as:
- Is the site located within the city or at the major travel corridor?
- How much competition is already there?
- Is the area already occupied with other self-storage facilities?
- And many more.
Have a planned construction:
After deciding the location. Always plan before you construct the building. Keep in mind the number of people in the city & the neighboring areas and construct the number of self-storage units accordingly. Always remember, empty units mean empty bank accounts. So, there is no use to waste maintenance costs on the unoccupied units. Always plan and then construct.
Put in appropriate security measures:
People are always concerned about their valuables. They are paying to keep the items safe and in return, they expect top notch security features. Always include high end security features at your storage space in order to attract the maximum customers. Provide them with automatic door locks, CCTV surveillance, fenced area etc.
Market it the right way:
After deciding where and how to build your storage units, there are more things to consider such as advertising, staffing and day to day maintenance. Marketing is a necessity, not an option. People would never make efforts to know about your business; instead you have to reach out to the targeted audience through various means in order to setup your business in the most profitable way.
These are the most important points one should keep in mind while starting up a self storage business. Always analyze and change the business strategies according to the market. There are always some risks that are associated with any business. But with proper planning and preparation, an investment in the field of self storage business can be a dream come true for any aspiring business owner.
With a growing number of people taking advantage of self storage facilities, it would be worth investing in this piece of real estate if you have the funds. There are many other reasons why you and your business partners should consider such investment if you aim to provide affordable and secure storage space solutions to consumers. Any investor can eventually enjoy significant profits as this kind of project is seen to attract a steady stream of clients moving forward.
Before you decide to go ahead with this investment project, proper planning is essential. You have to remember that a huge sum of money will be involved here hence, you need to be sure that you’re taking the right steps right from the start.
The first thing to do is to search for a real estate property that you can convert into a self-storage facility. In doing this, find one that is accessible to people such as those situated near the main access road. Avoid picking a property in a remote area as this could be an issue among potential customers. Keep in mind that location is one of the major considerations of most storage users.
As to the type of property to choose, it should be one that requires minor upgrades only. You’re lucky if you can find a warehouse type of building. If not, you can always renovate a property that you think is in a strategic location and has the potential of becoming a profitable venture. For those who have more than enough financial resources to use, they can opt to develop a new facility in a location they think is most accessible to people.
Apart from searching for the right property, budget planning is also vital. This will help you determine how much funds you will need and how to stick to it to avoid incurring extra costs. Real property ventures can cost a lot but if you know how to manage your group’s finances, you will be able to avoid money problems while completing your self-storage project.
When budget planning, there are various areas that need to be taken into account. These include your construction materials, labor costs and the cost of equipment you will have to install in the entire storage facility. An advanced security system is one of the most important equipment your company will have to invest in as this is what most storage users look for when choosing a secure place to store their personal and valuable items. This should include the lock system, lights around the place, smoke detection system, alarm system and a surveillance camera. Having a security guard is also another plus factor.
Hiring the right people to manage the facility is crucial as well. Storage users are particular about customer service in the facility they use hence, this should also be a top priority. If possible, ensure that your staff have the proper qualifications and should undergo training for their specific positions.
Finally, be competitive in your rental rates. It would be a good idea to compare the fees charged by similar facilities in the area before setting your own rates.