A self-storage facility is where you can store items you do not need or use regularly. These items are typically furniture, appliances, clothing, and more. The space is relatively small and limited.
A self-storage business involves renting storage space to customers for an agreed-upon term or a fixed or designated number of days. Rent is usually paid by the month and is generally based on the size of the storage unit.
1. People Will Always Need Storage Space
The modern-day world is very hectic, stressful, and busy. Things are moving faster than ever before. People buy more things to meet society’s demands for an ever-evolving lifestyle. On top of that, people move around a lot in search of good jobs, better schools, and a better quality of life. As a result, they end up with a lot of stuff.
People may also need storage when downsizing, divorcing, or moving to a smaller home. Most people do not want to throw their old furniture away. They might need the items when moving into a new home. People also use self-storage when renovating or cleaning out their homes. They may need room for items that have yet to sell, have not been donated, or are too big to fit into their homes. The need for storage also increases during the holiday season when people buy more gifts or new products.
2. Low Staff Requirement
Self-storage businesses are usually small to medium-sized operations. Most of their employees work at checkout counters or other front-end customer service roles. These employees typically handle the signing, accounting, and bookkeeping duties. They can answer questions, deal with problems, or provide additional information. These employees can also be called upon when needed to assist customers with moving or storing items into or out of a facility.
You don’t have to hire trained personnel or a large staff to run a self-storage business. Large businesses may need security personnel to protect the facility and its contents. With small operations, you only need a handyperson or a maintenance person to keep the facility running.
3. Rental Income is a Lucrative Source of Profits
The profit margins in a self-storage business are very high. Most self-storage businesses do not require significant investments in equipment or capital to operate. The business can make much money from a relatively small amount of inventory. Most of the profit will be generated from rental income.
A facility with a good location, all the necessary fixtures, and a high occupancy rate will generate a handsome income. Consider including additional services such as a truck rental or moving services to help generate more profits.
4. Easy Customization
Self-storage business owners can customize their facilities to meet customer needs. You can change the size of the facility and upgrade the storage spaces to make your facility more cost-effective. You can also offer custom packages to keep customers loyal. You have a lot of flexibility in designing a self-storage business if you are creative and willing to invest time into your ideas.
If you want a business with complete control over its operations, self-storage is one of the best options. It is relatively easy to set up and manage. People may need storage facilities for various purposes and always look for a convenient, secure, cost-effective, and easily accessible storage location.