Buy A Self Storage Facility Properly
In such a diversified market it’s important to know how to buy a Self-storage facility properly. It’s no good paying a lot of money for a facility that isn’t going to make you any money, so it’s important to do your research ensure that your storage facility is in demand, not saturated with competition and profitable. By ensuring these three things, self-storage units can make excellent investments. For an investor who does their research carefully, self-storage units can be a solid earner with a solid chance of resale in areas that are in demand. The best part is, because the units are used for storage and not lived in, there is usually little maintenance required for their upkeep. This is especially true if the units have been recently built.
One of the first things to do when in the market for a new self-storage facility is to assess demand. One of the first indicators is that you are within proximity to consumers. An area with considerable population density is one of the first things to ensure when you are searching for your unit. One of the next ways to tell is the number of vacancies a storage facility has. A high number of vacancies indicate that there is not much demand in the area. Conversely, areas, where there are waiting lists, indicate a thriving market. Similarly, if your storage facility is located off the main road a lot more people are going to be exposed to your advertising. You also need to make sure that the area is affluent enough for customers to be able to afford to spend additional income on a storage unit. Less affluent citizens are going to be less likely to spend money on a storage unit that’s way down on their list of priorities. Aim for an area where 50,000 is the median salary so as to ensure there is enough disposable income.
Avoid areas saturated with competition
Areas saturated with competition can make it difficult to turn a profit as you will have many more competitors trying to rent out storage units of their own.
This is particularly important if you’re planning on building a self-storage facility of your own from scratch.
This important if both you are planning on building a self-storage facility of your own from scratch or just purchasing a single unit. Rental rates should be around $1 per square foot so as to ensure that the price is not too low or too high.
Work out how much rent the unit is going to generate and how much profit you will be taking. Whilst it’s vital to make a profit check around your area and research how much the typical rental charges are to ensure that you are not overcharging your customers. Work out how much it will cost for you to pay off the buying price of your unit and how many months it will take you to do so. One of the advantages of units is that you won’t have to spend money in terms of maintenance costs as units are a low investment when compared to other forms of property because they aren’t lived in. For some unit owners, there is the possibility of hiring a management company to oversee the care of storage units but this is not a necessity.