Self-storage facilities can be expensive, especially if you want to make a good profit. Some key traits have helped to distinguish winners from find out losers over the years. It is very difficult for anyone to break this genetic code.
Many people will tell you how to purchase self storage facilities. Sometimes they will offer advice, as well as books, courses and boot camps. But, they lack experience. These concepts are based primarily on real-life experience. This information could be different from what your have heard.
Aproximately 50,000 people live within 3 miles radius of this facility.
It is not possible to create a self storage facility anywhere in the globe and load it up with stuff. Self-storage depends on people. People who need to store stuff. If there isn’t enough population, there is no demand. If you live in a small city with only 5,000 inhabitants, it’s impossible to rent or buy self-storage units. It is crucial to have a high level of population.
Traffic count exceeds facility capacity of 25,000+ cars daily.
Most self-storage customers locate their storage space by driving up to it. It’s a major decision point. People often don’t do extensive research on where to store belongings. People tend to look for the cheapest option and then go to the one that is closest to their homes. This makes it impossible for self storage facilities to be hidden from the public, or even on streets with little traffic.
Median household Income of $50,000
To pay storage costs, the customer must be capable of spending more than $100 per monthly. They cannot spend more if their rent or mortgage is not paid. It is necessary to have more than one item in order for them to be able keep their items safe. Only those with more cash can accumulate enough items.
400 units and more
Fixed expenses are a major expense for self-storage. The most expensive is the cost for the manager. It is necessary to manage a complex with enough units. Contrary what people may believe, a self storage facility can’t be run from a kiosk. It is not possible to run it without some type of management. These small rural properties are always up for sale.
High barrier to entry
It is possible to find self-storage units in all major American cities. You must ensure that there is not any future construction of self storage units in your chosen area. If not, your occupancy could fall below a specific level since there is always more inventory.