If you are interested in learning more about starting a self-storage business, you need to get my book on the journey of Self-Storage. It will take you from vision to reality. Step by step.
We have received hundreds of requests for information contained in this book. Everything from the history of self-storage to how and where it is going today.
I will let you know when the book is published. It is full of information on what to do next if you are contemplating your entry into the self-storage industry.
The following is just one section taken from chapter 16 in the book.
Expanding Remodeling Adding Value
Maybe you have been thinking that you need to remodel to keep pace or rise above your competition. Maybe you are convinced that you need to add value by expanding and adding services.
How can remodeling or expanding benefit your business. Have you been leaving money on the table? First, you need to conduct a cost-benefit analysis of each improvement. You will see that many improvements do not directly enhance a property’s value.
Self-storage property enhancements should add up to better occupancy at higher rental rates. These enhancements don’t come cheap. You may need to finance. And you can make some of the upgrades at little or no cost other than the time it takes to focus on these areas.
Before you decide to go the financing route, you need to take a look and assess the competition. You want your facility to be the best in your area. How do you stack up against them? Occupancy levels and rental rates are a good gauge.
Look at their property’s first impression and compare it with yours. Drive by traffic is up to 35 % of your business. First impressions are critical. Things like signage, painting, landscaping, fencing, pavement, the first row of storage doors, and overall cleanliness. Then budget for those elements that need upgrading and explore your options. When you think of the curb appeal, consider different ways to go maintenance-free.
Second impressions are the next critical factor which is how your office, employees and how they greet and converse with the potential customer. Decide whether you need to train or replace one or more of these personnel.
Now, the physical structures include your buildings and storage units. What is their condition? This is also an important area of consideration.
Keep in mind that females influence others a lot. Ladies drive the decision where to rent. They look at cleanliness and office appearance.
Now you need to make a case for the lender. Then you can expand your options for a loan.
You might consider expanding when you reach around 50 % occupancy. Or, if you are considering the sale of your property, you need to tackle the projects with the highest value proposition.