How to Start a Storage Unit Business

Starting a storage unit business can be lucrative

If you're looking for a business that creates passive monthly income long after your initial investment, then you might want to start a storage unit business. If you have some money to invest and don't mind waiting a few years for your business to grow, then a storage unit business is the perfect investment. Once your storage units are filled with customers, there is minimal work involved, and in many cases you can build a self-storage facility that rarely requires you to be on the property.

Difficulty:

Moderately Challenging

Instructions

1. Choose a location that will provide the most business for your storage units. Investigate various towns and cities in your area and see which ones have the highest growth rates. Growth means that there will be people moving to the area, and in many cases they will have extra items to store. A large, flat plot of land is the most desirable choice for a storage unit business and you will want to be sure that roads leading to your units are capable of handling an 18-wheeler truck---many people moving to the area might be unloading a large moving truck.

2. Find a national or local storage unit builder that can complete the construction of your storage units. It is not recommended to choose a franchise such as Public Storage since you will have to pay franchise fees for as long as you own the facility. When choosing a layout for your storage units, it is best to have a variety of different sized units, from smaller units that can hold boxes or a motorcycle to larger units that can hold boats and cars.

3. Call local storage facilities to get rates on comparable storage units. You may want to go about 10 percent lower than your competition at first just to get your units filled. Just make sure that in your rental contract it states that you have the ability to raise your rates by 10 percent after a year.

4. Make up fliers promoting your storage unit business and deliver them to new construction areas or recently built homes in your area. A Yellow Page ad in your local phone book is a great option, as is putting your business listing on Google, Yahoo! and MSN.

5. Open a merchant account at your bank that will allow you to accept credit cards and set up repeat billing each month. The only downside to the storage unit business is when customers don't pay their bills. In many cases, if items get left in a customer's unit after a while you will have to have a public auction and sell their belongings. Find out the exact rules regarding auctions in your state or town.