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Benefits of self-storage

Self-storage facilities take on many different forms globally:

  • drive-up facilities (popular in North America and Australia);
  • purpose-built facilities (typically a two to three story lightweight steel structure);
  • Self-storage building conversion in the UKbuilding conversions using existing industrial (old factory/warehouse) or former office spaces.

 
Benefits
Whatever their form, they have similar benefits:

  • Adjust rent as demands fluctuates
    Unlike traditional real estate, self-storage operators can adjust rents as demand fluctuates. If a lot of tenants move out and demand is high, you can increase rent on short notice for new clients and move existing customers to new rates when agreements end.
  • High control on rent collection
    If customers are in default of payment, you may control access to their units by locking them with an over-locking management padlock. If they remain in arrears simply clear the unit, sell its contents and rent it to the next customer. Industry-wide rental agreements allow this, so you keep rent-paying occupancy high with few legal or procedural headaches.
  • Self-storage has a low staff requirementRelatively low staff requirements
    Unlike traditional real-estate-related businesses, a self-storage facility can employ one or two sales staff to run the business during the day. A security guard may be on site at night. If you have multiple facilities, you’ll probably have a head office where people like marketing, finance and management work.
  • Low facility maintenance
    Maintenance of a self-storage facility is minimal as the storage units are almost maintenance-free and customer traffic is low, which limits usage maintenance. Office staff can cover minimal house-keeping duties.

 

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