Self storage facility business is one among many popular business opportunities in the real estate industry.
Many people start investing in real estate with a self-storage facility business. Each year so many people move within a city or out of a city. So, many people will need extra space to store the overflow of stuff.
This is where you come in with your storage space. Many people rent such storage spaces on yearly or monthly basis. In the recent years, self-storage spaces have gained more people are moving frequently and are buying more stuff.
Business : Self-Storage Business
Business Type : Services, Real Estate.
Suitable for : People with a good size of land.
Why start a Self-Storage Business? Because operating a self-storage business is easy, safe, and profitable. It is the easiest real estate venture and an easier way for entry-level investors.
Self-storage facilities require less initial capital compared to many other real estate ventures.
Lenders love self-storage startups because of their outstanding success rate. So, it is easy to find investing partners.
Self-storage business model is straightforward, and it requires less experience in the real estate jungle. There are so many business opportunities related to self-storage facilities.
How to start a self storage facility business?
80% of self-storage facility businesses are independently owned and operated. There are so many companies that offer self-storage franchise opportunities as well. So if you are interested in knowing the kinds of storage facilities that may work in your locality, then start researching about storage facility businesses that are already established.
Cost Related with storage facility businesses
1) Land : It is not really worth building a self storage business on other people’s land since a significant part of your earnings will be spent on rent. It is only sensible to build your business on a rented land if your storage facility is transportable. Different storage facilities require different features, so research and know if your land is apt for the kind of storage facility you are trying to build.
2. Buildings: Normally , a self-storage facility business requires the same amount of money required to build garages, some people choose big metal containers as cheaper alternative to a concrete structure. A self-storage facility is nothing but a garage in steroids. Other storage businesses like food storing culverts, cold storage facilities, non -perishable product storage facilities.. etc need different types of requirements and permits.
3. Insulation: Although insulation comes in the building costs, there are certain clients who want their stuff to be preserved at a specific temperature and well insulated. So you need to have a moderate temperature control and insulation facility as per their requirements.
4. Insurance: Needless to say, you need a good insurance plan in case the structure or the client’s stuff is subjected to theft, damage or natural calamities like hurricanes.
5. Franchise royalties : If you opt for a franchise storage company to help you build your business o n their brand , then you have to pay royalties and other charges as per your agreements with the company. There are many franchise opportunities where the company provides every clients and even builds a system for you,. Such opportunities are safer options if you want to build a consistent earnings with your land.
6. Maintenance : Storage facilities need less or no upkeep costs, which is why it is so successful business venture in most of the western countries. Most self-storage facilities offer short-term contracts. Most renters procrastinate about clearing out the stored items, in such cases, renters keep their units for over three years.
In the case of non-paying renters, self-storage owners confiscate all the stuff stored in the storage facilities and auction them for a good profit. Basically, their stuff is your collateral for rents.
Normally, the size of a self-storage facility in the U.S. is over 500 units. But it is wise to start small and then expand your facility once you get confident that your business can take off.
The most reason why self storage business plans work is because the return on investment is awesome. Most of the units are either prefab structures or insulated steel containers. So, the business is basically costs you so much less than the rent it generates, it is also eco-friendly, economical, transportable(in some cases), fast to build, long lasting and durable.
Self-storage facility business franchise opportunities
The storage industry in the U.S. is growing. According to IBISWorld, the industry brings in an estimated $38 billion annually. And if you’re looking to break into this growing business niche, a franchise can be a great way to get the resources and know-how you need. Here are some storage franchise opportunities for aspiring entrepreneurs to consider.
There are many companies like U-haul, Units, Pods, Big box storage etc.. that provide franchisee opportunities for people with lesser investment money. Check with their respective websites to know more about their rules and requirements.
Hope this article helps you. Please checkout other awesome business ideas mentioned in our blog. If you want to know about starting a plant nursery, click here . You can also checkout our other agriculture related posts here.