Mini Storage Feasibility Studies… To Build or Not to Build!

Mini Storage Feasibility Studies

In the beginning of self-storage there was little competition, land values were low and zoning ordinances were more flexible. Self-storage complexes were poorly planned with no thought to layout, unit mix or future expansion. Without a thorough feasibility study, costly “surprises” and construction challenges turned many “can’t loose” ventures into losing propositions.

Today’s savvy investor understands that a feasibility study can make the difference between success and failure. Below you will find an outline of what is included in a typical feasibility study. If you would like more information about having one conducted for your project call us at (800) 292-0111.

The main goals of a feasibility study are to determine whether a particular project makes sense or not. Should you build or not? If the project is a go, the study will provide valuable information that you will use to make decisions on square footage, what types and sizes of buildings you should erect, and a myriad of other considerations that go into developing a successful project.

A typical feasibility study may include some or all of the following information:

• Detailed analysis of your competition
• Consumer Demand Analysis
• Rental Projections
• Recommended Unit Mix
• Profit Projections
• Demographics
• Characteristics of a Successful Location
• Management Plan/Overview
• Analysis of the location of your land
• Security Considerations
• Building Construction Suggestions
• Customer Considerations Related to Appearance
• Visibility of the Facility
• Traffic Count
• Accessibility
• Assessment of Yellow Page advertising
• Climate Control Issues
• Pricing Research and Strategy

WHAT CAN YOU PAY FOR THE LAND? THE 66% RULE

Average the rate you receive for a 10×10 and a 10×15 storage unit. Multiply that number by .66. The result is the most you can pay (per square foot) for the ground. This is a rule of thumb that is very important for determining the cost of the land.

EXAMPLE

10×10 rent	$85 per month	$85 x 12mos=	$1020.00
	divided by	100 sq. ft.=	$ 10.20
10×15 rent	$98 per month	$98x 12mos=	$1176.00
	divided by	150 sq. ft.=	7.84
		AVERAGE=	$ 9.02
			x .66
			_________
PRICE FOR GROSS SQ. FT. OF LAND			$ 5.95

* Developed by Buzz Victor

Starting a Mini Storage Business

Starting a Mini Storage Business in today’s economy is a great idea. People all over are losing their homes and selling their houses to rent apartments and townhouses. The maintenance cost on housing and the upkeep is draining American’s pockets.

Financial advisers are telling people to sell if they are behind on any house payments, this way they can live for a small monthly rent and illuminate all their living costs.They are telling people to rent for two to three years and straighten out their finances in the meantime and then buy once they are financially secure. This is opening up lots of opportunity for the self storage industry as these people will all need a place to store a house full of belongings.

Mini Storage Outlet provides high quality steel mini storage buildings at affordable pricing. Our self storage systems are eco-friendly and offer a multitude of design concepts to choose from. You can also incorporate your own custom additions into the architectural layout of your self storage building(s).

With thousands of people looking for somewhere to safely house their belongings your sure to have a lot of business coming in. Investing your money in a rapidly growing industry is a smart way to build a solid business.

For more information on Mini Storage Buildings please contact us at:

www.MiniStorageOutlet.com

1-800-292-0111

or email: info@ministorageoutlet.com

Tips on Getting Started in the Self Storage Business

The mini-storage business involves more than simply renting out storage units. There are basic legal, construction & other matters to be considered & understood before you put up your mini storage buildings or buy some storage units and rent them out.

It is recommended that you seek the advice of others that have been successful in the mini storage business industry. Their experience can help you avoid costly mistakes during the start up process.

Get to know your market
Knowing the demographics of your market is important as it will help you determine if there is enough potential business to accommodate another self-storage company in your area. This will help you to determine how big your company needs to be in order to be profitable. Set up shop in an area where demographics will produce business for you, such as near apartment complexes, airports, or in college towns or areas with a lot of traffic.

Create a business plan
Opening a mini self storage company will likely involve some up-front capital to get started. $100,000 or more is not uncommon, especially if you’re building from the ground up. A business plan will help you realize your vision as it will detail what needs to be done and how much it will cost you. Your business plan should include how you plan to run your company such as your rates, which forms of payment you will accept, how to collect on unpaid rent and a solid accounting system.

Choosing a Mini Storage Unit
Decide what types of mini storage units you will rent. Some things in need of storage must be kept at certain temperatures. Make sure your mini storage buildings are properly insulated. Maintaining clean functional mini storage units can help prevent damaged items; this will keep your renters happy. You may can talk to a contractor about building the proper size units or order them prefabricated from a mini storage building outlet.

Know Your Rights
Know your collection rights in terms of dealing with unpaid rents. It is common for mini-storage owners to have the right to auction off items belonging to deadbeat clients. However, this needs to done according to the law. Never attempt to sell the contents of an unpaid unit until you’ve properly posted notices of public auction in the local newspaper. Contacting an attorney is, therefore, wise.

Market Awareness
Mini self storage companies get business from all walks of life, depending on what types of storage units they offer. A good way to begin marketing is to build a website, post classified ads in newspapers and contact people in your immediate area. Mini storage companies also commonly grow by word-of-mouth.

Mini Storage Outlet offers Self Storage Units in a Wide Variety of Size and Color Options. Our Experts can Help you design & Build a Mini Storage Unit Setup that will Surpass all of Your Expectations.

Give us a Call Today at (800) 486-8415
or visit us online at:
www.MiniStorageOutlet.com

Self Storage Businesses are Still Making Money!

USA Today Posted an Article recently about the Mini Storage Businesses doing well, even in the recent economic downslide.

NEW YORK — It’s a pack rat’s market. The recession hasn’t squeezed businesses that help people store stuff — yet. But as the summer peak season nears, self-storage operators are expected to offer discounts to keep their units full. “The industry is going to give concessions,” says Paul Puryear, director of real estate research for Raymond James. “They will try to lure people in and offset some movement by offering more discounts. “They’re watching the summer, when occupancy jumps 4 to 5 percentage points, to see how they’ll ride out the downturn. The $20 billion industry has held its own, but the economic carnage came after last summer. So far, “The industry has showed it’s not recession-proof, but it is recession-resistant,” says Robert Schoff, president of the Self Storage Association, who says year-to-date occupancy is down only about 5 points to 75%.

Customers who’ve yanked old couches and baby cribs from the cubes to save money have been replaced by folks who had to downsize because of home foreclosure or job loss. “The housing downturn by some accounts has actually put some businesses into self-storage,” says Puryear. “What we are trying to measure is how severe an economic downdraft it is going to take before we have people abandon their self-storage. “Americans typically spend $100 to $120 per month for an extra 100 square feet of self-storage space at the 52,000 facilities nationwide.

Americans’ love for stuff has helped the industry grow from 200 million to 2 billion square feet in the past 20 years, even as the median home size grew 10% to 1,769 square feet. “In the good economy, we had 15% of customers with discretionary income who were storing third and fourth cars with us,” says Dean Jernigan, CEO of U-Store-It. “That business is down very close to zero.”Need is driving business now. “People unfortunately still are moving down the housing ladder, Jernigan says. “They have more in the way of possessions than will fit in a smaller house, an apartment or in with parents.

“Marketing planned by three major storage operators:

•U-Store-It (YSI). A campaign including its first TV ads next month promotes a guarantee that if you find a lower price, it will beat it by 10% of the price difference, says Jernigan. “We’re being very sensitive to the economy. We understand that people are watching every dollar.”

•Public Storage (PSA). Ads promote the first month for $1 at its 2,000 sites. “Our marketing program has been pretty focused. It’s a simple uncomplicated message,” says Mark Good, senior vice president and COO. “We offer convenience and value.”

•Extra Space (EXR). People who book their space online can get a free month of storage.

By Theresa Howard, USA TODAY

 

Get in the mini storage business while it’s booming!

www.Ministorageoutlet.com has Metal Mini Storage Buildings for Sale at affordable pricing.