A self-storage facility is a smart business idea, but buying and setting up storage units for sale is challenging in many ways. From finding the perfect place for the facility to buying units, there are plenty of things to consider. However, the right method of starting storage units can help you make a profit.
The world of self-storage units is growing bigger with each passing day. As per a report, Europe has around 2,400 facilities, Australia has 1,100 facilities, while the US alone is home to more than 52,000 self-storage facilities. Although the facility numbers are increasing rapidly, they are falling short when it comes to meeting the demands. This makes storage facilities for sale a profitable business idea.
However, buying a self-storage business for sale is a lot harder than you think. When started without research, it can lead to a big loss. On the other hand, it can help you make money if you set it up carefully.
In this guide, you’ll learn how to buy self-storage property and what to do before investing in it:
1. Find the Right Location
Honestly, you cannot start self-storage in a remote region and expect it to flourish immensely. According to experts, the rule of thumb to set up a self-storage facility is to understand a region. Think of a facility close to the population.
Although you don’t need to set it up in the middle of a city (as it can be an expensive investment), ensure the chosen property is just 2 to 5 miles from the most populated part of the city. It increases your chances of getting regular clients.
2. Understand Residents’ Lifestyle
Even if you have spotted a populous region, you need to pay attention to several things to figure out whether or not the area is perfect for self-storage properties for sale. Look at the traffic count, lifestyle of people in the region, and the median household income. It is necessary to ensure that people who you think can be your future clients are capable of spending on self-storage units.
Also, your potential customers must have excess belongings to use your storage units. You can examine people’s lifestyle in the area to know if they believe in preserving things or not.
3. Learn About Competitors
Are there other self-storage facilities too? Are they having a good time? Do they have satisfied customers? What are their limitations? Finding answers to such questions will help you understand whether or not the chosen area is apt for storage units for sale.
Although experts suggest looking for areas with more demand and less competition, you can enter a region where people aren’t happy with the current self-storage facilities. You can overcome their limitations with your services and create your own clientele.
4. Finalize Unit Numbers
How many units do you need? While investing in the self-storage business for sale, start with small and increase the numbers over time. Apart from that, your research on the market can help you learn about the right unit numbers to get in the beginning.
In addition, set a budget before investing. Remember that you also require staff to manage the units. Consider these factors while deciding on unit numbers.
In the End
Investing in storage units for sale is a profitable business idea. When done right, it flourishes and enables you to expand your business to multiple regions. Make sure that you consider all the important factors before setting up a facility. In this way, you can reap the facility’s benefits in the long run.