10 tips for Getting into Self Storage
There is no doubt that investment returns are harder to achieve with low-interest rates.
The old 20% return days are well and truly gone and you are lucky to get a double-digit return these days. Returns are predicated on getting your investment right.
Self Storage is a good investment – but there are traps for those who jump in without experience.
How do you get into Self Storage?
We will assume you are an investor. Here are our 10 tips for getting into Self Storage
- Do your homework first. Time taken on research is rarely wasted. There are a lot of options and Self Storage is a capital intensive business. Use our resource selfstoragestartup.com.au as a good place to find all sorts of information.
- Only use professionals with Self Storage Experience. To the novice, Self Storage looks like a bunch of sheds on a block of land. Architects and builders without specialist Self Storage Knowledge often fall into design traps, costing owners real money. Forever.
- Understand your funding. Self Storage eats capital. Regardless of whether you undertake a conversion or a new greenfield site build, you will need resource behind you.
- Use tried and tested online marketing and IT Systems. There is no need to reinvent the wheel when it comes to online marketing, Self Storage software and IT systems, Self Storage industry experts have the answers to help you get started right from the start.
- Don’t skimp on Security. Your shiny new Self Storage site needs to protect other people’s valuables. Put yourself in their shoes – would you store your stuff at a place with no security. Believe us, there are sites with no security!
- Get a Self Storage professional to undertake feasibility. Don’t rely on your gut feeling that “Yep, Storage will work here” more than likely, there is one around the corner.
- Make provision for the future. Have you ever been to a butcher shop that did not have sausages to sell? Well, it’s easy if you make the mistake of having no room for expansion.
- Employ professionals. The village idiot does not run your Super funds so why employ the cheapest person you can find? Self Storage sales are like all others. Professional selling is the key to fast let up and profits.
- Join an industry Association. They offer great advice and legal agreements to use, protecting you and your customers.
- Size does not control cost. If you build 50 or 5000 spaces some costs are the same. The cost to acquire a customer is not reflective of the number of spaces nor the size of them. A customer is a customer and they will expect service and peace of mind that their goods are safe.
Self Storage has matured to a 20 billion + industry in Australia with professional operators who use sophisticated systems to rent Storage spaces. You will need to be able to compete with them.
www.selfstoragestartup.com.au is the place to find all the professionals we have talked about in this article. All of them are equipped to help you start your Self Storage Journey.
Regardlss of your investment, there are professionals ready to guide you from the start to finish on your Self Storage jouney!