How to Make Cash in Self-Storage
Americans have more things than they know what do with. Therefore, they need extra space for their stuff. This simple need is the foundation of Brilliant Storage. The demand does not mean that the process of filling this void will be easy. Self-storage is more complicated that it looks. There are many important issues you need to address.
The Right Type Facility
Over the last forty years, there have been many varieties of self-storage buildings. They are called “Generation One”, “Generation Two”, and the most profitable. Important is the fact that all the rental units are located on ground floor and that a car can drive straight up to the rollup door. Why is this important? Research has shown that self storage tenants want to be allowed to drive straight up to their self storage unit door. They can roll it up, get their stuff in it, or pull it out, close the door and drive away. Units on higher floors, or units that are difficult to reach by foot, are not in demand. Nobody wants to have their stuff with them and need to take an elevator up to their apartment. These facilities weren’t really in demand. Self-storage developers created them to help justify building facilities on more costly land.
“Climate controlled” units have also proven to be a failure just like multi-story buildings. It seems that Americans don’t have enough items to require air-conditioning or heating. Most facilities will have the majority of their “climate controlled” space empty. California’s inventions of “wine storage,” however, are at the lowest end of this spectrum. Recently, there was only 20% occupancy in “wine store”. This concept has been replaced by the Costo wine refrigerator and other retailers. You should also remember that “climate controlled” areas are very expensive to manage.
The Right Kind Of Location
A good street view and visibility is essential for self-storage. This trait is common to the U.S. self-storage businesses that are most successful. Americans frequently rent space in facilities they drive past all the time. It is impossible to get anyone to rent space from you if you have poor visibility or in an unattractive location.
Self-storage is very competitive in most market. You need to ensure that your facility is equipped with the basics necessary to compete. We love the stories of underdogs who win. But it is much easier for you to win when there are no disadvantages.