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Newly interested in industry- Why so few with multiple units?

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  • Newly interested in industry- Why so few with multiple units?

    I'm investigating opening a facility sometime next spring, and one of the questions from my other half has been "why do most owners only have one facility?" I believe I got the stats from the "Creating wealth through self storage" book, and if I recall correctly it was like 80% of owners own one facility. So, since my plans would be for several, why do most owners only own one? Financing? Hassle? Other?

  • #2
    because one is enough.
    In no way affiliated with Storman software.

    Comment


    • #3
      I work at a family owned single 600+ unit facility and they do real well with this place. I came from a facility where the owner owned a total of 3 facilities. Same state but spread out. He had other irons in the fire that took his time plus 3 facilities that required decisions about maintenance, repairs, auctions, problem tenants, banking....etc. on a daily basis. He was spread very thin. He made me the operations manager so I could basically live at and manage 1 of the facilities and I also made decisions for the other 2 facilities and had to travel to them a minimum of 3 times a month. It was a PITA for me. I did not like the travel back and forth. If you do own multiple facilities, I see no problem at all as long as at least one thing happens. You have to have people you trust completely working for you and helping you manage them. A good example of that person(s) is Music City Gal here. Hopefully she will chime in. She has this down to a science. We haven't always agreed with each other on things but I do respect her for her leadership and business qualities. I bet she is fun to work for. If you can talk to her, LISTEN.

      The other answer to your question is........see what Storman said.
      "Never let the inmates run the asylum!"

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      • #4
        Our owner has 2 facilities (both run independently, not as a chain) but he also has another business and storage is just a hobby for him. He is also 84 so he is not looking to own any more storage facilities.
        "I don't understand your specific kind of crazy but I do admire your total commitment to it!"

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        • #5
          You may want to start with one and see what it's truly like, running day to day, what you have to deal with etc. And yes, I am speaking of you actually running the business daily for awhile. Then see if you really, really want multiple sites.
          Gina 6k
          twitter.com/GinaSixKudo
          VM: Four-Oh-Eight- Seven-Eight-Oh-Eight-Oh-Seven-Nine
          storagebizhelp@gmail.com



          You only live once, but if you do it right, once is enough!
          I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.

          Comment


          • #6
            We owned 2 Facilities from 2001 until 2007. It was a PITA for me as as soon as I left one facility to head to the other I get a call that someone wants to pay in full to get in or rent a unit. A friend is a realtor and I told him everything has a price tag. If he could get X amount for it we would sell the second facility. He got very close to the set amount. We made a huge profit and now just run DAK Self Storage (or built from ground up facility).
            Joe Krezdorn
            DAK Self Storage
            Leesport, PA 19533
            www.dakselfstorage.com

            Comment


            • #7
              Managing one site near your home (and/or near your day job if your storage facility is not your sole source of income) is a lot easier than dealing with a facility that is further away. The technology to operate them remotely is getting better all the time though - web sites, e-signatures, kiosks that accept payments and dispense locks...

              But no matter how much you automate the place and install cameras, someone still needs to perform physical maintenance and clean up tasks, and security can suffer if there isn't someone there on a regular basis. Sure you can hire people for that, but it cuts into your bottom line. So for many owners, it's easier to just have one site and add on to it when demand warrants and if space allows.

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              • #8
                I agree 100% with Steve. As an owner of one facility I am looking for a second but with a full time job that takes alot of my time there is no way I have enough hours to give to the second facility at this point unless I can find one close to my current facility. With that being said it doesn't mean I am not looking and even not bidding on facilities that are farther away but i need to consider all expenses when they are farther away.

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                • #9
                  I am no storage expert but here's my humble thoughts having spoken to many storage operators and owners who've owned properties for more than 15 years.

                  I find that the theory of more locations is often related to finding trustable resources to manage the property and even more hard on the owner to overlook and manage both facilities remotely. Having said that I believe that most independent storages are quite a hobby business where the owners do work a day to day job, hence creating less time for taking more to manage.

                  But in the world of technology that we are in, there are quite many storage management software that's paved way to better MANAGE, TRACK and REPORT daily operations in a storage facility, thus helping storage owners and operators to invest their time better. I've personally had the pleasure to experience this myself with a few clients who've grown from a mom and pop one location to 3 in just a years time.

                  #6Storage
                  Alen
                  Client Relations
                  6Storage
                  p: +1 (844) 334 4666 m: 954.239.7180
                  w: www.6storage.com e: antony@6storage.com

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                  • #10
                    Originally posted by newstorageguy View Post
                    I agree 100% with Steve. As an owner of one facility I am looking for a second but with a full time job that takes alot of my time there is no way I have enough hours to give to the second facility at this point unless I can find one close to my current facility. With that being said it doesn't mean I am not looking and even not bidding on facilities that are farther away but i need to consider all expenses when they are farther away.
                    What would it take to give up your main job and just run the two facilities full time?

                    Comment


                    • #11
                      Self Storage is just hard enough not everyone will do it. It takes between $500,000 to $2,000,000 equity per facility to get started. Not a lot of people have the time and equity. Also it takes a lot of time to either build a new facility or buy a facility - Two years is not un realiistic and often it takes 3 years, And then you have to fill it up if you build. So it comes down to time and money like amy other things. Most individuals build a self storage while they have a full time job. So $200K to $400K plus your regular pay is not a bad gig.

                      If self storage payed you double or triple you income would you retire or build another one?
                      Marc Goodin, President of Storage Authority Franchising
                      Self Storage Owner, Designer and Author
                      Self Storage Planning - Design - Marketing Services

                      www.StorageAuthorityFranchise.com

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