Suzana MikolovaThe Future of Self Storage Industry
The self storage industry is growing by leaps and bounds, but because it costs so much to get started, it may take a few months of out of pocket expenses until you reach the breakeven point. Have the resources to weather this period, because times will be lean for a while.
If you are prepared financially and practically, this can be a very lucrative venture to be involved in. Just make sure to read through all the small print and pay attention to all the details before investing.
The self storage business is a fast growing industry and has a bright future as long as people and businesses have to much stuff. Those who have the financial resources to invest a significant amount of up front costs can enjoy this very profitable market.
Just noticing how well advertised self storage facilities are in different media formats shows how in demand they are. Anyone from apartment dwellers to large corporations benefit from self storage facilities because they free up so much valuable space.
If you are considering purchasing a self storage facility, there are few things to consider before making the investment and getting started.
Look at the realistic viability of the location in question and also consider the earning potential it has. Also consider the expenses involved in maintaining the facility as well as general operations, it’s location and other factors.
Purchasing a self storage facility requires a large investment if starting the project from the ground up. If buying an existing facility, take into account the costs involved. Look at operational expenses like rent, utilities, employees, licenses and permits and a whole lot of other little things.
Buying one that is already in existence needs to be analyzed from a couple of perspectives to help determine the viability of the site. Consider supply and demand, and be sure there is enough demand. Also think about operations, finances and legalities. Combining these elements will help first time prospective investors get into this booming industry.
Since the self storage business is growing, it is a good time to invest. However, initial expenses are so great, the breakeven point will take months to reach, and expect to pay significant out of pocket expenses for a little while.
If you are prepared, this can be a very profitable venture to invest in. If you decide to purchase an existing business, make sure you read the fine print before signing anything.
