How to Start a Self Storage Business

If you are interested in the income potential that real estate investing offers but are concerned with the current state of the real estate market – have you thought of self storage units?

This area of real estate is commonly overlooked, yet it offers just as much profit potential and multiple benefits (ie lower operating costs, less risk) – and less hassles. For example, instead of having to fix toilets or repair appliances for tenants, storage unit owners simply need to keep the property clean and secure.

You can buy an existing storage unit facility or build your own. The key is to have a good location. A location that has high visibility and is convenient for customers are two important factors.

In addition, understanding the local market and current trends are essential. Opening a storage facility in an already-overbuilt area will simply give you more competition and make it more difficult to get customers. This is why it is so important to conduct a feasibility study and put together a business plan (see link below) prior to starting your business.

Of course, if you need to obtain financing, you will need a business plan to present to lenders. According to Scott Meyers of Self Storage Profits, Inc., it is also critical that you show lenders how you will manage the facility. List your experience in the industry or in real estate and/or explain your skills and talents working with others. If you plan to hire maintenance and repair services, management staff, landscaping companies, etc.., cover those as well.

Good management can result in a successful company – due to greater efficiency, lower operating costs and increased revenue. Give lenders as much reinforcement as you can.

How to Generate Multiple Streams of Income…

Keep in mind that there are more ways than one to make money with a self storage facility. In addition to leasing storage space, you can sell moving supplies, offer truck rental service, provide a “pack and ship” service or add and eBay selling center, where you sell unwanted items for customers and split the profit.

Tools and Resources for Getting Started:

An inexpensive way to gain some insight into the business of self storage investing is to look at a business plan for a storage unit business. This can give you an idea of start-up and operating costs, targeting a market and locating customers and profit potential.

If you want to learn more about self storage investing, Scott Meyers is a master (he also has extensive experience buying rental homes for no money down, by the way). He now hosts live seminars, teaches mentorship programs, runs the Self Storage Academy, has developed storage unit valuation software and more. Check out this video below:

More videos and training from Scott

See also: storage businesses for sale

For more new business ideas for small and home-based companies, visit The New Business Idea. You can also get over 200 business start-up guides and download the Home Business Start-Up Checklist free from www.HomeBusinessCenter.com.