How to Start a Self Storage Business
People have too much stuff. That shouldn't be a surprise to anybody who has ever tried to move, just to suddenly realize how many things they have but don't need. Most people have a hard time parting with items that hold some kind of memory. Others are using self storage to hold their possessions for a period of time while they're living in smaller quarters. Whatever the reason, the self storage business is booming.
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Instructions
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Decide how much money you can invest to get started. While the process is straightforward, you do need to rent a large space and build the interior units before you can start renting them out and bringing in a profit. This may take a few months in which you will be investing without seeing any return.
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Research the type and amount of insurance you need for the business depending on your area and city laws. You may need to provide your own insurance or give renters the choice of paying extra for it.
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Research the competition. The investment is big enough that you need to make sure you will profit from it. Large cities such as New York, where apartments tend to be small, are a great market for self storage units, but deciding to start your business in a neighborhood that is already saturated with storage centers may be damaging.
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Evaluate your options. If you live out of the city, it may make more business sense to buy some prefabricated storage buildings rather than renting out a large space.
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Review the official website of the MiniCo, Inc. to find out about the industry and what is involved in owning your own storage business, including market analysis, investment strategies and construction costs. The website also offers opportunities for networking with other professionals in the field, which is a great chance to ask questions and explore the field before you decide to start your own place (see Resources below).
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Tips & Warnings
Much of the space now rented in self storage places goes to businesses and industries rather than to private clients. Companies are using storage space to hold inventory, keep outdated files and archive important material that would otherwise take too much space in their offices.
You will need a bank loan to start a self-storage business. Counting permits, rental space, construction and other details, you're looking to a start-up cost of at least $50,000.
Look for employees early on. You will need security around the clock plus somebody to handle office coordination.
