The self-storage industry is an industry that helps individuals store their personal or household belongings, furniture, office supplies, etc. in individual storage units. Self-storage is short for self-service storage, and the units are rented out on long term and short-term basis.
These facilities have rooms, lockers, containers, or outdoor spaces for customers to store their stuff. If you have extra money to spare and are looking to invest in a self-storage facility to rent out and generate some passive income, then the self-storage industry might just be what you’re looking for. While renting a self-storage unit in Wisconsin or any other city, keep these factors in mind:
People who are looking for self-storage units to lease, usually require a place to store their belongings. The said belongings could be household items or business-related objects and papers. They could also be excess inventory from the customer’s business, vehicles, or even furniture or art.
Regardless of what the customer stores, it is imperative that the customer is able to access their belongings whenever they need them.
Since self-service storage facilities are growing in demand due to the rapid urbanization of cities and regions, hence having a storage facility near the city would be more profitable.
Because the customers wouldn’t have to make too long of a journey to and from your self-storage facility. Therefore, be sure to choose a location that is easily navigable.
2. Type of storage
There are a lot of different types of storage units that self-storage facilities offer. Most facilities offer traditional storage units in their facilities, but there are others that provide various features and perks that can be availed by the customer if desired.
Some of the most common storage unit types include:
Traditional units: These are the storage units in facilities that are not portable. Usually, customers drive to the location, deposit their belongings in the storage units and the belongings stay there until accessed again by their owner.
Climate-controlled units: These are a special kind of storage unit used for belongings that need specific temperatures to remain in perfect condition. As the name suggests, climate-controlled units can alter the temperature inside the units.
Hence these are suitable for temperature-sensitive belongings and are usually used for antiques, musical instruments, art, and the like. Outdoor storage units:
These are situated outside and perfect for the storage of vehicles. The customers can drive the vehicle inside, and take it out when necessary, making it very easily accessible.
Indoor storage units: These units are situated inside facilities or buildings, and are generally used to house household belongings and smaller items.
Portable storage units: Portable self-storage units are mobile storage spaces that one can drive down to the customer’s homes for a hassle-free process.
The customer can load all their belongings in the portable unit and be free of worry. But which one would be the best? This brings us to the next point.
3. Demand in the region
Monitoring the demand of different types of storage units, and just self-storage facilities in general in your area can be of immense help in deciding which type would be the most profitable for you.
Sometimes the traditional units are more profitable, especially when the customers don’t need to lease special or sensitive belongings.
But conducting research about the types of belongings that your region’s self-storage users are storing, can give you a decent idea of which type of storage unit is in demand.
There are some self-storage companies that provide unlimited accessibility, whereas others provide limited accessibility. In my opinion, customers might prefer having unlimited accessibility if they are storing belongings that require frequent access.
While limited accessibility can be fine for storing belongings that the owner doesn’t need to access frequently, it could drive away the customers which do require frequent access to their stored items.
Hence having a storage facility that would allow the individuals to visit their storage unit whenever and however many times they like, could make a difference in your occupancy rate.
While most self-storage units are pretty secure, thefts are still a concern at the back of our minds. Hence buying a self-storage company that has impeccable security measures in place would be great for relieving the worries of customers.
Along with worries customers, good security measures could also relieve a lot of stress from your shoulders. You wouldn’t have to worry about your customers accusing you or your employees of theft if thefts don’t take place at all.
6. Condition of the units
Often, self-storage units are not in the best of conditions due to old age or regular wear and tear from usage and the weather.
It is important to ensure that your self-storage facility is in a good condition and properly functional. This will help you in avoiding the extra expenses of renovation or repairing the units later on.
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7. Pest control
The interior of storage units doesn’t get much sunlight. This is especially true for indoor storage facilities. This could result in a wide variety of pest problems. From mice, and rodents to insects, all such pests could be incredibly harmful to the customers’ belongings.
And more so to your company’s reputation. To ensure that the storage facility is suitable for dealing with such issues, especially facilities located outside the main city. Those sites are more prone to insect infestations.
These were a few tips to keep in mind when investing in the self-storage industry. Other than these, there are other things too that require consideration. For example, the availability of portable units for the seamless transportation of the customer’s belongings to the self-storage location.
This has the potential to help your business. Because the people don’t have to worry about finding helpers to move their belongings from their homes to your facility. With everything in mind, the self-storage industry is booming right now and can be lucrative if done right.
And it is the perfect time to start investing in something that generates you passive income. Because if not now, then when?