How To Become A Self Storage Owner

16
Dec

How To Become A Self Storage Owner

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An excellent game plan for a self storage owner when it comes to building a new facility is to construct it in phases. This works great for someone with just one location or several, as well as for someone that is building from the ground up or rehabbing an existing structure.

When the plan is to build in phases, the self storage owner needs to purchase all of the necessary property to begin with. Just because the land next door is available now does not mean it will still be vacant and for sale at a future date. And he needs to have a general idea as to what his strategy is for the long run. Is he planning to adjoin several one story buildings, or does he intend to build upwards and add additional floors on top of the current one.

If the owner plans to eventually adjoin more single story buildings to the original, then it is best for him to lay all of the concrete for the foundations at the same time. This will cost him extra money upfront, but it will save a lot of headaches down the road. About two thirds of his total expenditures will come during this phase one, but worries about zoning changes, Mother Earth and the ground settling, and foundations not meshing properly will be alleviated if the concrete is all poured at the same time. The area that is just concrete can be rented as outside parking spaces until it is time to build the extra units. This will bring in additional rental income, instead of just being wasted and unused space.

If the proprietor intends to build a multi leveled building, then he needs to make certain the original first floor is built to accommodate this. All legal codes and specs need to be addressed from the very beginning in order to get construction permits to add on in the future. Again this will cost extra to start with, but will be well worth it down the road.

Rehabbing an existing eyesore can easily be done in stages for a self storage owner . One example is that he can turn the front half of the edifice into units originally, and then renovate the rest of it at a later time.

The advantages for a self storage owner to build a facility in phases are numerous. First, it will cost less money to begin with. Therefore there is less risk involved. This will in turn make his initial risks lower, make it easier to get financing, and reduce his mortgage payments.

Once the initial facility is about sixty percent rented, then it is time to begin phase two, which will be a breeze compared to the first phase. For one thing, the proprietor will have the rental income from the first phase to pay for the newest addition. Plus he will have a feel for the market by this point. He will know what sized units his customers prefer and what types of amenities bode well in the area. And obviously lenders will love the chance to work with his business, since it will already have a steady cash flow. And the owner will have had a chance to learn a thing or two from his competition. What is he doing well, and in what areas can he improve upon in the newer section.

Building a facility in stages in a great idea for any self storage owner , whether he is new to the industry or an old hat.

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Self Storage Blog : http://www.selfstorageowner.com/blog/

Also : If you liked this entry , you might enjoy reading some of our other articles such as New York Self Storage Units and Texas Self Storage Units

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