It can be difficult to buy self-storage facilities, particularly if your goal is to make money. Over time, there have been certain basic characteristics that distinguish winners from losers. It’s hard to break that genetic code, get more information here.
Many people will tell their story about how to get a self storage facility. Many of these people don’t have the necessary experience or are merely inexperienced. These concepts, which we will share with you, are based upon real-life information. We have a large website dedicated to this industry. It might be very different from what your have heard.
Within 3 miles, the facility can be reached by 50,000 people.
It is not possible to create a selfstorage facility in the middle or nowhere and have it filled up. Self-storage is a business that relies on people. If there is no population, there will be no demand. You can’t buy or build a self storage facility in a small city of 5,000 people. Or at least not enough to make any money. The most important factor is the density of the population.
Traffic count exceeded facility of more than 25,000 cars per day.
Most self-storage clients find their storage home when they drive by it. It is in many ways a decision that affects the final purchase. Many people do not make a thorough research into where to store their stuff. People tend to look at conveniences and simply pull in to whatever is closest to their house or business. Because of this, it is not possible to create a successful self-storage facility in a hidden location or on a narrow street without traffic.
The median household income in the United States is $50,000
To pay for storage, the customer must have discretionary spend ability. If they can’t afford their rent or mortgage they won’t feel the need to spend any more. You will also need extra belongings in order to have storage. Only people who earn more can have enough material to store it.
400 units or more
A self-storage facility can have significant fixed costs. The most important is the manager. You must have enough units to accommodate the staff required to manage the complex. Contrary what some may think, a selfstorage facility cannot be managed from a mobile kiosk. You can’t run it without any management. Smaller rural market complexes are available for purchase.
High barrier to entry
It may be obvious that there are a lot of self-storage units available in every major U.S. city. There are also many units available in mid-sized cities. It is vital that you pick a market that will allow no more self-storage buildings. A market that allows self-storage facilities is not allowed to be built on its existing market could lead to a situation where occupancy levels are impossible or even impossible to exceed.