Have you ever noticed an old or abandoned facility in your area and thought “Hey, this could be transformed into a business!”? You’re not alone. There are many business ideas possible to bring back used buildings. One of the practical solutions is converting a building into storage units.
All About Self Storage
Self storage is a service that allows you to rent a certain commercial space so you can store any of your goods. This service is not only limited to individuals but also a great help for businesses. The units come in various sizes and usually rented on a month-to-month basis.
Some reasons why people rent storage units are:
When Moving Out
Households often have a lot of items. When relocating, families just pack everything, not realizing if there will be enough space in their new home. Self storage rental can serve as a temporary space for your stuff while trying to make some space in that place you just moved in.
Renovations can be stressful. The process turns your place around, making everything a mess. To minimize the chaos and make the renovation work faster, people rent storage units so they can temporarily store their belongings.
For Business Inventory
No matter what kind of business you own as long as you need extra space, renting out storage units is a good solution. These units can be used to store stocks and other supplies. For small or startup businesses where their products take too much space in their home or wherever they are, self-storage rental is a big help.
There will always be a demand for self-storage. In the United States alone, 10.6% of households are currently renting storage units. The industry is also reported to have earned annual revenue of $39.5 billion. Furthermore, it is forecasted to be worth $49.24 billion by 2024. That is why converting a building into storage units is an excellent business idea, to begin with.
Benefits of Choosing an Old Building for Your Self Storage Business
You may be a bit hesitant to invest in an old building, and it’s totally understandable. After all, the facility has been abandoned and who knows why it’s been left untouched for some time. Nevertheless, you are in for a treat if you consider self storage conversion, and here’s why:
Faster to Build
We all know that constructing a building from scratch will take some time. You need to adhere to different laws, local codes, and design and construction requirements before proceeding with the actual development of a building. You don’t need to go through all these inconveniences when you just opt for an existing facility.
Of course, you’ll still need to submit certain requirements. But it’s not as extensive as it was with constructing a new building. Plus, financing options are easier with buying an old building. In this situation, banks are more open to lending you money because you can start with the self storage buildout, enter the market, and break even with less ramp-up period.
Accessibility and Visibility
When constructing a new facility, you’ll need to think twice about the location. Naturally, your customers will require storage units that are more accessible so they easily get hold of their belongings whenever they have to. The advantage of choosing existing facilities is that most likely they are already in an established area. This saves you the time and effort to go through the process of researching where to put your self storage business.
Perhaps one of the biggest advantages of choosing used buildings is the amount of money you get to save. With new constructions, you have to set aside funds just to build everything from the ground up. But with old buildings, all you need to focus on are self storage conversion costs. However, you must carefully inspect that facility you’re eyeing. You’re in danger of spending more if that building has unforeseen issues.
The Neighborhood Will Thank You
What a sore in the eye to see something left deserted in your neighborhood. By converting a building into storage units, you can make that particular space alive again. Moreover, the update you made can brighten up the mood of the community. This can make your move a talk of the town and more people checking out your business.
How to Start?
Ready to begin with your self storage venture? Check out these tips:
Perform a Market Research
Research is a vital step in any kind of business. Clearly, your first step is to look for vacant buildings and compare them by their size, price, and location.
Choose a facility that is situated on the main road where passers-by can easily see and learn about your business. Next is to check out the competition. Are there already enough self storage rental businesses in the area? Are they successful? Is it still feasible for you to start a new one?
Knowing the answers to all these questions and a lot of other concerns will surely help you with your venture.
Check the Building’s Quality
Now that you have found a potential building, you need to check first if it’s good enough for your self storage business. Work with the experts, such as an architect and a contractor, to help you inspect the said building.
With their knowledge, they can help find out whether the building is structurally sound and feasible for conversion. An architect can help you maximize the space in the old facility while making sure you’re still abiding by the building codes.
Meanwhile, a contractor will make sure that your ideas are practical for the existing building.
Take Note of the Pricing
Decide on what you want to be included in your self storage business. Aside from demolition and repairs, you need to set up self storage partition systems, wall panels, and even carts to help your customers with their stuff.
Another consideration is your office as this is where you’ll be dealing with your future customers. You may want to add in a seating area, storage for snacks and beverages, and even apply for a Wi-Fi connection so that your customers will feel comfortable while they wait. Add everything up to determine your estimated cash flow.
To Sum It Up
Searching for a business with a good return on investment? Self storage rentals offer high potential. Initially, investors start by getting funds for a new facility. But you can start this business even with a used facility. You just need to do your research if the building has no issues and if it’s strategically located.
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