How to Make Money in Self-Storage

Americans have more stuff that they know how to use. This means that they require extra storage space, read full report here. This is the basis of self-storage. However, this does not automatically mean that it will be easy to fill the void. Self-storage is not as simple as it seems. There are many important issues that you must address.

The Right Type of Facility

Many types of self storage buildings have appeared over the past 40 years. They can be referred to by their “Generation One”, the “Generation Two”, as well as the “Most Profitable”. The fact that all units are located on the ground floor means that cars can drive directly up to the rollup doors. Why is this important Research shows that self storage tenants want to be able drive right up to their self storage unit doors. They can roll it up and get their stuff inside, or pull it out and close the door. Units on higher floors or units that are more difficult to reach by foot aren’t in high demand. It is not a desirable option to bring all your stuff and then need an elevator to reach their apartment. These facilities weren’t in great demand. They were designed by self-storage developers to make it more affordable to build facilities on larger land.

Like multi-story buildings, “Climate controlled units” have also failed. Americans seem to not have enough items that they need air-conditioning and heating. Many facilities will have most of their “climate-controlled” space empty. California’s inventions for “wine storage” are at the lower end of this spectrum. In “wine store” there was only 20% occupancy. This concept has since been replaced by Costo wine refrigerators and other retailers. It is important to remember that climate-controlled areas can be extremely expensive to manage.

The Right Kind of Location

For self-storage, visibility and street view are essential. This trait is common in the U.S. Self-storage companies that are most successful. Americans rent space in the same facilities that they drive by every day. It’s difficult to find someone to rent space to you if your visibility is poor or you live in an unattractive area.

Self-storage is highly competitive in many markets. It is important to make sure your facility has all the essentials to be competitive. We love stories of underdogs winning. However, it is much easier to win when there are no disadvantages.