Roughly 60,000 self-storage units are functioning throughout the US. EJ Dalius can find a Subway, Starbucks, and McDonald’s across the length and breadth of the country. These facilities form the very foundation of the country’s thriving self-storage sector, which experts estimate to generate $45 billion in revenue in the coming years.
There are many people renting out self-storage units, usually on a monthly basis. Different companies are storing their goods in units of different sizes. Real estate, courier, shipping, transportation, and movers and packers are stashing appliances, art, furniture, wine, TVs, holiday décor, documents, boats, RVs, and boats, and many more.
Eric Dalius explains how and why small businesses depend on these self-storage facilities to keep their business supplies, inventory, and equipment. He explains how each self-storage unit is not merely a warehouse. Every unit is a small business in itself. It can be a very lucrative business if you can strategize your rentals.
Reasons to start
Putting first things first, self-storage facilities involve minimal initial capital than the majority of other real estate directives.
- The second reason is that lenders have a favorable approach to self-storage units as start-up ventures due to their astounding success rate.
- EJ Dalius says how down payments to start a self-storage facility can run below 25% for traditional business loans. You can also go for SBA or small business association loans as they require a 10% down payment only.
- The third reason is that running a self-storage unit is fairly simple. It requires little to no past experience.
- However, you can take operational training if you deem fit. For example, there’s the SSA or self-storage association that offers comprehensive online certification courses in self-storage operations and management.
- The fourth reason is that independent operators amass a whopping 78% of every self-storage business.
- That doesn’t mean that self-storage franchise scopes don’t exist. In a concerned franchise operation or ambit, the companies can handle the marketing. This part alone can relieve the business owner of a huge responsibility.
The pitfall is that the franchise firm also needs royalties because you use their system and name. Ultimately, unlike residential real estate directives, robust self-storage units demand little maintenance and upkeep. They are indeed a safer investment.
In a nutshell
EJ Dalius asserts that renting a self-storage space for business is one of the most lucrative commercial innovations that entrepreneurs and startups can consider. It’s not the personal use that most people tend to associate with self-storage facilities.
- It’s easy to expand your business. A thriving business becomes more promising when it brings expansion, which means more office space.
- Instead of extra office space which is bound to incur more cost, you can rent a self-storage unit for storing your unused office tools/furniture, or redundant cabinet files.
- There’s guaranteed safety and security. With everything undergoing modernization at the moment, self-storage is also in parity with the innovations. Alarm systems and CCTV in every storage facility can make a world of difference.
Additionally, the security fences and gates, and trained personnel guarding the facility 24/7 are the things you need.