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Business Idea......Any Input?

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beastboy

New member
This is by no means an original idea.

Has anyone ever looked into or knows anyone that has got into the Self Storage business? Really not much overhead (loan, general maintenance, insurance, misc.) if you think about it. I know these things are always rented out in my area too. I've heard depending on your property cost you can put these up for around $250,000 (approx. 200 units).

Problems is the low lifes storing crap and not paying. But you are able to auction their crap of after X amount of time.

My wife says no way, cause we have our own side business now that is allot of work, but once it is paid for I may look into starting something else.

Any input? Ideas?
 
Depends on your vacancy rates etc. Self Storage can be pretty lucerative.

If you can open 200 units for that cost, that is 1250 a unit. Rent each unit out for a couple of years and they are paid off.

When you do you calculations don't forget to account for security. Also, are you going to manage it yourself or hire someone. In which case you have those fees.

What is your other business?
 
Beast....self storage business is a money making opportunity. The renters pay your mortgage every month and then some. Not a lot of things can go wrong with the building unless somebody rams it with their truck or something. Don't have to worry about electricity except for good lighting in the drive lanes. Maybe a few security cameras to make people feel safe and and a high fence around it and a good padlock for the main gate. I have several friends that own them and they are definitely money makers!
 
ZenMachine said:
Depends on your vacancy rates etc. Self Storage can be pretty lucerative.

If you can open 200 units for that cost, that is 1250 a unit. Rent each unit out for a couple of years and they are paid off.

When you do you calculations don't forget to account for security. Also, are you going to manage it yourself or hire someone. In which case you have those fees.

What is your other business?
Click to expand...

I think you can get an average of about $100-$150/month for rental of these units. At 200 units that is $25,000/month. Now subtract your loan expense, insurance, general expense, and employees (1-2), you could still have $10,000/ month left over. This is just all off the top of my head....I haven't really done much research yet.

My other business deals with party rental equipment.
 
beastboy said:


I think you can get an average of about $100-$150/month for rental of these units. At 200 units that is $25,000/month. Now subtract your loan expense, insurance, general expense, and employees (1-2), you could still have $10,000/ month left over. This is just all off the top of my head....I haven't really done much research yet.

My other business deals with party rental equipment.
Click to expand...


Beast...I have one of those storage units and I think it is about 10 X 10 and I pay $60.00 per month. Of course, bigger units will rent for more and smaller ones for less. You will need to offer several different sizes for the public. I am also in a very small market and I am not near a large city.
 
beastboy said:


I think you can get an average of about $100-$150/month for rental of these units.
Click to expand...

That's assuming they are the very large units. These places usually offer at least two (most times 3 or 4) different sizes for different costs. The smallest ones, which are usually 5X5, go for between $35 and $60 around here. The largest ones go for around $100. So unless your area's pricing is alot different, i really think you're overestimating what you can bring in per unit.

Also, don't kid yourself and think that you will have a 100% occupancy rate. You should be happy with 75% or even lower.

If you're looking at a place with 200 units, it sounds like you're looking at about 10 acres of land. Buying 7-10 acres of land. You will then have to have that land cleared and paved. Again, depending on your area, that's probably $100,000 right there, and you haven't even bought the actual structures. Don't forget lawyers fees, incorporation costs, advertising expense, telephones, power, lighting, security equipment. You might spend $7,500 on fencing and barbed-wire around 10 acres.

I'm sure you're aware of all this, but it sounds like you may be underestimating costs and overestimating profits. If anything, it should be the other way around.
 
HumorMe said:



Beast...I have one of those storage units and I think it is about 10 X 10 and I pay $60.00 per month. Of course, bigger units will rent for more and smaller ones for less. You will need to offer several different sizes for the public. I am also in a very small market and I am not near a large city.
Click to expand...

If Beast puts this up anywhere between where he is and where I am, he will make some money. In my area, a small unit goes for around 80, medium 100-110, and a large for 130-175.
 
As is evident on this post, prices range for storage units depending on where you are at. Easy enough to find out what they go for in your area, just make some phone calls. You could try to get a idea of their vacancy rates too. Ask them if there is a wait etc.
 
I am in between quite a few larger cities, and I know the units (smaller ones) are up around $100.

bigguns: Thanks for the input, I am aware of those other costs....I've been through it before. Whenever I do my proposals, I usually go with the worse-adequate case scenario.

Also I meant to say 250 units...rental about 200 at a time. BUt I have checked into my area and allot of places have a waiting list for units.

Good input from all! Keep it coming!
 
It sounds like you have mostly made up your mind. So time to put pen to paper so to speak and come up with a business plan. When you forecast vacancy rates be generous.

If the numbers work out, you should be able to sell it to your wife, if you can't, you probably couldn't sell it to a banker to finance.

Zen
 
ZenMachine said:
It sounds like you have mostly made up your mind. So time to put pen to paper so to speak and come up with a business plan. When you forecast vacancy rates be generous.

If the numbers work out, you should be able to sell it to your wife, if you can't, you probably couldn't sell it to a banker to finance.

Zen
Click to expand...

Don't know about that...my wife is tough and stubborn!:D
 
if you do open one, look in areas around universities. finding storage was a bitch freshmen year, and they charged an arm and a leg, and they got away with it.
 
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