How to Properly Purchase a Self Storage Unit
It is difficult to find resources self storage units. There are some basic characteristics that have helped successful facilities stand apart from those that have failed over the years. This genetic code can be difficult and costly to break.
Many people will give you advice on how to get self storage units. This is usually in exchange of a book, course or boot camp. These people lack experience or little knowledge. We will show you concepts that are based on real data. This is a result of running one of largest industry websites. This might surprise you from what your previous knowledge was.
Within 3 miles, the facility has 50,000 residents.
The idea that self-storage can be built in the middle or nowhere and filled with stuff is a myth. Self-storage can only work if people have the need for it. Without people, there’s no demand. It’s impossible to create or buy self storage facilities in small towns with fewer then 5,000 residents and still be a success. The minimum you can expect is to not make enough money. Population density is vital.
Traffic count exceeds facility of more than 25,000+ vehicles per day.
Self-storage customers almost always locate their storage area by driving by it. It is often a purchase decision. Most people don’t spend a lot of time thinking about where their stuff should go. People are drawn to convenience and will tend to choose the closest location near their house or workplace. There is a myth that self-storage facilities can be concealed from sight or left on two-lane streets without traffic.
The median household’s income is $50,000.
In order to pay storage, the customer needs to have sufficient discretionary spending ability. They will be unable to increase their already tight finances if they are having difficulty paying their rent, mortgage, or other expenses. They will also need extra possessions to be able storage. Only those who earn more will have enough storage space.
400 units and above
Self-storage facilities come with a number of fixed costs. The manager is the most expensive. It is vital that there are enough units available to allow staff to manage the complex. Contrary what people might think, a self-storage unit cannot be managed from a mobile kiosk. It is important to manage the self storage facility. These small villages are home to rural markets and they are always available for purchase.
High entry barrier
You may have noticed self-storage units in nearly every major U.S. metropolis. Many units are available in small markets. It is important to avoid self-storage facilities in a market. This will make it possible for your occupancy to not exceed a certain level because of the constant supply.