About Storage Facilities
Storage facilities have advanced in terms of size, options and technology in recent years. Companies like Public Storage have developed facilities with automated gates, digital cameras and lightweight locker doors to protect assets for their customers. These facilities have realized greater profits in recent years as college students, apartment dwellers and international travelers keep their possessions tucked away. An entrepreneur looking for a passive business opportunity may want to look at investing in storage facilities.
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Function
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Storage facilities are used by consumers to deal with household clutter and changing living situations. The average storage facility allows a homeowner to put away old furniture, seasonal decorations and collectibles that are not used frequently. Parents use storage lockers to stow away clothing and bedding for college students who are away from home most of the year. Contractors, military personnel and world travelers also use these facilities as low-cost storage for their possessions over months or years.
Size
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The size of the average storage locker varies from 25 square feet to 750 square feet, depending on the storage provider. Storage facilities rely on a high volume of monthly rent payments and fees to stay afloat, requiring hundreds of units to earn a profit. The space between storage units needs to be sufficient for cars, trucks and SUVs to pull up close to locker entrances for easy access. Facility owners also need to account for check-in areas, rental truck storage and parking areas as they purchase property for storage lockers. Many owners purchase larger lots than necessary to account for future growth as the storage rental industry continues to take off.
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Features
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Every storage facility has an exterior gate that keeps the public away from rented storage lockers. This gate is typically controlled by an automated system that allows assigned PIN numbers to open the door. Once inside the exterior fence, a renter can drive up to the building containing his locker. This building may also require a PIN code or key for entry as another layer of protection for renters. Most storage facilities use sliding metal or plastic doors on their lockers that can be secured with a standard padlock. Facilities typically leave lockers bare except for an individual light for clear visibility, requiring users to add rugs and wall padding on their own. If a renter has a question about monthly payments and security issues, the facility's staff works at an office outside of the gate.
Considerations
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Storage facility owners have to think about payment options, extra locker security and partnerships with other companies to grow more successful in their markets. Most companies allow renters to pay with cash and credit cards on a monthly or quarterly basis. A storage facility may decide to offer direct deposit from checking accounts to make monthly rental payments easier. While payment options are critical to meet monthly expenses, a state-of-the-art facility needs proper security to stay ahead of competitors. A combination of security guards, night-vision cameras, sensor lights and more elaborate access codes can make renters feel more secure. This investment in enhanced security can be funded through partnerships with local moving companies, office supply firms and car rental chains that can advertise special rates through the facility.
Benefits
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An owner of a storage facility realizes several benefits from running this business type, not the least of which is a simple way to earn a profit. If an owner reaches maximum occupancy and sells some premium services, the monthly revenues can pay off property and maintenance expenses quickly. These facilities require a low number of employees, allowing an owner to keep payroll low and give qualified employees more responsibilities. Ambitious owners can use storage facilities as launching pads for auxiliary businesses that may be interesting to renters. New ventures like moving services, truck rental, moving products and local tours can increase traffic to the facility while creating additional revenue streams.
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Resources
- Photo Credit Photo by Sandor Weisz (Flickr)
