Buying a self-storage facility is much harder than you think - especially if you want to make money with it. Over the years, there are some basic characteristics that separate the winners from the losing facilities. And this genetic code is hard to break.
There are many people who will tell you everything about how to buy a self storage hongkong facility in order to sell you a book, a course or boot camp. But they really limited or no experience. The concepts we are going to tell you here are based on real-life information - and many of them - to run one of the largest sites dedicated to the industry. And it can be very different from what you have heard of before.
50 000 Inhabitants within Three Miles ofthe Establishment
The myth that you can build a self-storage facility in the middle of nowhere and fill it up must be exposed. Self-storage depends on people - people who need to store things. In the absence of the population, you do not have the request. You cannot build or buy a self-storage facility in a small town of 5,000 people and succeed - at least not enough success to earn a little money with it. Population density is the key.
A number of traffic accounts installations 25,000 + cars per day.
Most self-storage clients find your home storage driving for it. It is in many ways a point of purchase decision. Few people have put a scientific study on where to store your stuff. They look at the convenience, and often just pull in the first pass through your home or business. As a result, it is also a myth that you can have a successful self-storage facility that is hidden from view or stuck on a two-lane street with no traffic.
The Average Family Income of $ 50,000
To pay for storage, to pay $ 100 per month or more, the customer must have discretionary spending power. If they are struggling to cover your rent or mortgage they will not have the desire to add to your already struggling finances. In addition, in order to have the need for storage, they will actually have an excess of property. Only people with higher incomes can accumulate enough material items need to store them.
400 Units or More
There are significant fixed costs in a self-storage facility, the most important of which is the manager. You must have enough units to support the staff needed to operate the complex. You cannot self-store a kiosk, as some people might suggest. And you can not run it without any form of management. This is why small complexes in rural markets are still on the market for sale.
The barrier to entry
You may have noticed that there is a huge supply of self storage hongkong units in almost all major cities in the United States - and most medium-sized markets as well. It is extremely important that you choose a market that allows virtually no additional self-storage facilities. Otherwise, you may find that occupation can never rise above a certain level because there is always more supply being put on the market.