Looking at a 5 and 1 with self storage and wanted to know how well the self storage business is. Any comments from experienced storage operators? The wash seems to be priced real well with the self storage. I wanted to know what the current percentage of vacancy is running on storage units and how many default typically in one year. Any info is good. Thanks
Self Storage and Self Serves
- Thread starter beauman
- Start date
Bubbles Galore
Active member
If you are looking at a 5/1 with storage units in Genesee County, MI please PM me.
Plow Guy
Member
A year and a half ago I had 90% to100%seasonal occupancy,today i have 43% vacancy. There is also a company under construction that will take the available units in our area up by 5 times.I have 18k sq. ft. They are building 30k. So A: storage is not recession proof. B: There is always someone with more money willing to flood a market. and C: My name is Alma Storage. Their name is Alma Super Storage. I believe in competition, but this is out and out wrong. Do your market research. Does the car dealership offer life time oil changes and car washes,does the grocery store have room for a rolling arch.Are there vacant lots waiting to be developed just down the street. Will the seller sign a non compete clause.Does the quick lube have a rolling arch. If the seller says " shes a cash cow" run and don't look back.
I have about 200 self storage units in Northern Pa. Occupancy has been steady at 85-90% for the 10 years I have owned them. Default is less than 2% You don't make a lot of money in self storage- my prices 10'X10' is $40.00 per month and a 10'X20' is $85.00, but this type of business isn't labor intensive.
Scott
ScottV
Upstate NY
Im in Upstate NY, have a 2 / 2 wash and 240 storage units out back. Occupancy is around 90-95% and we have basically added a building each year as demand dictacted. Default or bad debts run around 5% of total gross income, and could be lower if I paid more attention to managing it.
I also work full time for a fortune 100 company, so these businesses dont get the attention a full time owner would probably give them.
The big difference that I see between the two business models is one is a cash business and the services are paid for up front, the other you have to go looking for your rent money each month. We send monthly statements, which none of our competitors do but it helps to remind the tenants of their obligations.
I also work full time for a fortune 100 company, so these businesses dont get the attention a full time owner would probably give them.
The big difference that I see between the two business models is one is a cash business and the services are paid for up front, the other you have to go looking for your rent money each month. We send monthly statements, which none of our competitors do but it helps to remind the tenants of their obligations.
robert roman
Bob Roman
I have a 10 by 10 in Florida where I store motorcyle junk and business records that I can't fit in my garage. I pay $100 a month, includes 24-hour access no extra charge. Rates at this place haven't increased in several years. I believe this guy is still hanging in there at about 30% vacancy based on my conversations.
In 2005, I rented a 10 by 15 at Uncle Bob's (Boob's). Rent started out at $115 a month. Within two years, it went up to $180, extra charge for 24-hour access. The caretakers sucked, the gate malfunctioned frequently, no one ever answered the 24-hour "hotline" or returned calls and the manager/franchisee was exceptionally rude. After the last rate increase, I told him to stick his business up his nearest orffice. My friends that rented there told me this duffus has lost a load of customers.
Its really no different that any other business, its all about customer service. Charge people a decent, competitive rate. Don't jerk them around with uncessary price increases to line your pocket. For example, property values have tanked 20% here and property taxes have subsequently dropped, so where was his justification for the big increase? Keep a clean and neat facility. Respond to customer issues in timely and professional manner.
In 2005, I rented a 10 by 15 at Uncle Bob's (Boob's). Rent started out at $115 a month. Within two years, it went up to $180, extra charge for 24-hour access. The caretakers sucked, the gate malfunctioned frequently, no one ever answered the 24-hour "hotline" or returned calls and the manager/franchisee was exceptionally rude. After the last rate increase, I told him to stick his business up his nearest orffice. My friends that rented there told me this duffus has lost a load of customers.
Its really no different that any other business, its all about customer service. Charge people a decent, competitive rate. Don't jerk them around with uncessary price increases to line your pocket. For example, property values have tanked 20% here and property taxes have subsequently dropped, so where was his justification for the big increase? Keep a clean and neat facility. Respond to customer issues in timely and professional manner.
I built and opened my mini-storage about 2 years ago. We hit 54% occupancy and have not budged past that. We loose one or two
units per week and pick up one or two units per week. We need to be at about 80% occupancy to break even. Our rates are lower than our competition and we run a cleaner, friendlier operation. Hey, in this market I am just glad to maintain as opposed to my carwash which is down about
20%.
My default rate is low, but it is because we have decided, since we have vacant units, to work as much as we can with our tenants. People are really suffering out there.
units per week and pick up one or two units per week. We need to be at about 80% occupancy to break even. Our rates are lower than our competition and we run a cleaner, friendlier operation. Hey, in this market I am just glad to maintain as opposed to my carwash which is down about
20%.
My default rate is low, but it is because we have decided, since we have vacant units, to work as much as we can with our tenants. People are really suffering out there.
