Storage ideas????

[Iguerra]

I am seeking advice. I am currently in the process of buying a few lots in small towns near me. Most don't have storage facilities or have just one facility. I am not trying to go in direct competition with them as I am fully aware there isn't enough demand for 2 facilities in towns that range from 1800 to 5000 in population. But what I want to do is earn a small steady revenue on the side. I spoke with the tax assesor and the lots are on the edges of towns and come with out restrictions. What I'm asking is would it be profitable to buy a few sheds for each location and rent them out as storage units? Monthly payments on the sheds are half the price of a storage unit rental in my area and are bigger. So I can match the prices around me and still make a profit after making the payments. Of course I won't over buy on sheds I would increase the numbers of the sheds as and if the demand increases. I plan on fencing the lots and providing some kind of authorized access with 24 hour surveillance for the clients peice of mind which is something the other facilities in the area don't provide. Please respond with your advice I am at an indecisive state of mind to move forward on this. Any opinion and advice would me greatly appreciated.

[Steve_hajewski]

This sounds like a lot of work for a minimal return. For all the fancy offices and technology you see in industry publications, big boring low pitched storage buildings are what generates the money. The goal is to get a whole lot of those boring buildings one one site behind one gate. Steel storage buildings are low maintenance and there is some economy of scale to be had if done right vs paying for individual sheds.

I'm in a town of 5000 people and own a 280 unit site (but I serve a market of about 9000 people according the feasibility guy). There's another site bigger than mine. And another old small one. And we are all full. Buying just a few sheds vs investing in a proper building is probably going to cost you more in the long run. Each property will need power, internet, a gate, have a tax bill, need to be maintained. I would suggest look into SBA lending and try to find a market where you can get started with at least about 10,000 ft of storage with room to grow. Bring in a business partner if you need more backing to get the loan and do it right.

As for your rental rates, if you are building nicer than the competition then price it higher.
Last note, location is important. You want to build close to where people live - in the direction that residential growth is going. Many people just pick the place closest to them. So, often picking a parcel of land that costs more but is in a better location is a better decision. You'll fill faster and be able to charge higher rent in a good location. Looks for 3 to 5 acres.

Here's a good video for getting started in storage: https://youtu.be/AQFRVL4VUdY

Steve
Trachte Building Systems
608-327-3208

[Iguerra]

Thank you for your insight.

[helenatim]

Steve makes some great points. I would also suggest getting Inside Self-Storage Magazine and accessing their website. They have some great info on building/developing facilities.
Following along your shed idea: you might consider individual metal storage containers instead of sheds. More durable and safer. Not necessarily shipping containers, but actual specialized storage boxes. They are portable, don't affix to the ground and so may not be taxable as real property.

[Iguerra]

Helenatim i will look into that. Thank you

[Foxes Den]

Weather you like it are not you will be in competition with the other storage facilities

[Iguerra]

I understand that