How to Buy a Self-Storage Facility
- 1. Consider why you want to buy a self-storage facility. ...
- 2. Do your homework. ...
- 3. Broaden your search. ...
- 4. Assess the market’s long-term potential. ...
- 5. Put your best foot forward. ...
- 6. Lean on the self-storage business pros. ...
- 7. Secure financing. ...
- 8. Select a property. ...
Full Answer
How much does it cost to open a self storage franchise?
Storage Authority offers a franchise opportunity that focuses on consumer level self storage. The overall investment can vary depending on location and size. But the minimum upfront cost is typically around $400,000. A moving and storage franchise business, UNITS currently has open territories in metropolitan areas across the U.S.
What are the best storage unit franchise opportunities in the USA?
The list of popular storage unit franchise opportunities in the USA includes plenty of different concepts. Among them are portable storage container solutions; deliveries of trailers containing storage containers to customers' homes; warehouse self-storage and moving services, etc.
How much does it cost to open a unit franchise?
UNITS Moving and Portable Storage. A moving and storage franchise business, UNITS currently has open territories in metropolitan areas across the U.S. The initial franchise fee is $55,500. And multiple-unit franchises are also available.
What is a storage authority franchise?
Storage Authority offers a franchise opportunity that focuses on consumer-level self-storage. The company offers 50+ years of self-storage and franchise experience including design, construction, operation, and ownership.
Is owning a self-storage profitable?
In a word, yes. Just how much annual income can storage facilities generate? Your profit will depend on several factors, including the size and location of the facility, whether you used a loan to acquire the property and how you're using the facility to generate income.
Is a storage company a good investment?
Self-storage properties are also one of the lowest-cost real estate investments since they're typically inexpensive to build and operate. As a result, they tend to have relatively low occupancy break-even rates. These factors enable self-storage investments to generate high margins and investment returns.
Can you make money owning storage units?
Typically, a self-storage facility still makes a profit at 60% to 70% of full occupancy. Currently, the industry average occupancy stands near 90%, according to Statista. Nevertheless, experts say it takes one to two years to reach 90% capacity. Many self-storage owners run family operations.
What is the profit margin on storage units?
As consumers' buying power increased, people needed a place to store all the stuff that wouldn't fit in their homes. Forbes lists the self-storage profit margin as 11 percent, making this one of America's most profitable small businesses. Profit margins are around 11 percent.
Who is the largest self-storage company?
1. Public Storage. Long the leader in self storage, Public Storage once again earns its place at the top of our list. With 186 million net rentable square feet under its belt at the end of September 2021, the company's distinctive orange signs can be seen in 39 states.
Is it smart to invest in storage units?
Investing in self-storage brings huge income potential as its market is growing. Self-storage is used by people and businesses to safely store all kinds of goods/materials, vehicles, etc. They play an essential role in the lives of Americans due to the major need for secure places to store household goods.
Is self-storage a passive income?
For starters, demand for storage units secures your passive income stream. No matter the state of the economy, people always need a place to store their inventory, clothes, vehicles, and office supplies. This is why self-storage properties are often called recession-proof commercial real estate assets.
How do storage facilities make money?
There are a number of ways to earn more money with your storage facility....Vending. ... Sell Boxes and Storage Items. ... Sell Additional Services. ... Upgrade Your Storage. ... Partner with Moving Trucks. ... Advertise with Billboards. ... Advertise with Smaller Signs. ... Generate Solar Power.More items...•
How can I make money with storage space?
Ways to Make Money From Your Unused SpaceBring on a Housemate. ... Rent a Room on Airbnb. ... Rent Out Your Entire Home While Not Using It. ... Create an ADU. ... Rent Out Storage Space. ... Rent Out a Parking Space. ... Rent Out Artistic Amenities and Space. ... Rent Out Your Home as a Film Set.More items...
Are storage units safe?
Self-storage facility risks include rain damage, mold, and theft. Look for a well-maintained facility with climate-controlled units. Security should include digital surveillance and access codes. You can take personal measures to protect your stored belongings.
How many self-storage REITs are there?
Industry OverviewNumber of REITs5Average Dividend Yield2.68%YTD Total Return-7.92%April Total Return-6.10%2021 Total Return79.42%May 24, 2022
Is a wine storage business profitable?
Further, wine storage has proven to be extremely profitable, with your rent per square foot being much higher than normal units. This is a result of the compact nature of wine storage, with the average unit being smaller, but also the ability to stack them up together.
How do storage units make money?
An interesting fact is that the smaller units often sell for more than the bigger units because some buyers can only handle the material that is stored in a smaller unit....Start Small and Practicebuy the unit.transport the contents of that unit.clean out the unit.sort through the items.sell the contents.dump the trash.
What is the best passive income?
Dividend stocks Dividends are paid per share of stock, so the more shares you own, the higher your payout. Opportunity: Since the income from the stocks isn't related to any activity other than the initial financial investment, owning dividend-yielding stocks can be one of the most passive forms of making money.
Are storage units recession proof?
Self-storage is sometimes called a "recession-proof" asset class. It has a history of profitability even during the worst of times — such as in 2008, when the sector eked out positive returns of 5%, even as every other asset class suffered.
How do you value a storage unit business?
Divide your net operating income (NOI) by the cap rate to calculate your property value. This reflects your income stream, which is an important consideration in determining a sale price for your self-storage facility.
What is self storage franchise?
For those who may be moving or who may simply have need of space temporarily for extra possessions, self-storage franchises are a business option that will appeal to many entrepreneurs. This kind of franchise opportunity provides consumers with a reliable and trustworthy location to house their belongings for as long as they need.
What is Signarama franchise?
Signarama is the World’s largest full-service Sign and Graphics franchise with over 700 locations in more than 50 countries worldwide. Signarama is also a part of United Franchise Group, a proven leader in the franchising...
What is a lazy daze coffee shop?
LazyDaze CoffeeShop is more than a coffee shop…We are a subculture made up of folks whose behavior and values have always been very different from the norm! We are a coffee shop and a dispensary that carries Counterculture...
Is self storage still a franchise?
The self storage franchise industry has expanded to include more possibilities than ever . The traditional storage facilities are still a reliable business, but now there are portable storage options, as well as climate-controlled storage solutions. Other franchises in this category may offer assistance with moving or packing, while others may also include storage of items such as cars, RVs or boats.
Can you text on Franchise Gator?
By pressing "Submit Request", you agree that Franchise Gator and businesses you selected may call/text/email you at the number you provided above, including for marketing purposes related to your inquiry. This contact may be made using automated or pre-recorded/artificial voice technology. Data and message rates may apply. You don't need to consent as a condition of any purchase. You also agree to our Privacy Policy & Terms of Use.
Is there a business like your own?
There's no business like your own business.
Is self storage a good business?
There are many advantages to owning a self storage franchise. This is a lucrative business, but the marketing assistance that comes from being a franchisee can prove invaluable. This category has experienced a great deal of growth in recent years, making it an attractive investment for someone interested in owning their own small business. What's more, self storage franchises offer a reliable revenue stream with very little upkeep.
What is extra space storage?
Extra Space Storage offers a third party management solution for property owners looking for a trusted name to manage their business. The company provides marketing support, strategic direction, revenue management and more.
Where is Big Box Storage located?
Big Box Storage is a storage and moving company based in San Diego, California. The company, which provides portable storage containers, started out with just a few company owned locations, but has since welcomed franchisees in other areas.
What is Myway Mobile Storage?
MyWay Mobile Storage offers a portable self storage option for consumers. The company provides marketing and customer service/sales support for franchisees. So you can use your time and resources to focus on running all the other aspects of your franchise business.
How much does Smartbox cost?
The initial franchise fee can vary depending on the size of your desired territory. But it usually starts at $40,000.
What is Universal Storage Group?
Universal Storage Group also offers a variety of management and consulting services for self storage businesses. The company offers training, development, management and more all aimed at helping storage businesses increase earnings.
How much commission does a U-Haul dealer get?
You can become a dealer to earn about 21 percent commission across U-Haul’s product lines.
What is closet box?
ClosetBox is a full service storage business, offering services like pickup, security and delivery. The company has partnerships in states across the U.S. You can contact the company to learn more about current opportunities and integrating the ClosetBox name into your business offerings.
