Start a Self Storage Business

A self-storage business allows individuals or companies to rent rooms, units of space or containers in larger premises or warehouse to store possessions. This business caters to people or businesses that need space to store possessions and usually pay a monthly fee.

In the last few years, we have seen big players emerge in the local self-storage industry, however, they are the exception, there are few more self-storage companies that are small businesses.

Market Need
Both people and businesses may have possessions that don’t have space to store, this can be from moving to a smaller house or premises, but also for companies that are working in a remote location that needs a  safe space to store equipment and materials.

Business Model
Self-storage takes various formats, it can be a building custom-designed for storage. But often it is an already built building or garages that are converted or used for this purpose. We have also seen large yards been turned into self-storage by using shipping containers.

This business has some serious requirements, you need to keep your clients’ possessions safe both from threats such as theft but also from disasters such as fire or floods. Security and surveillance 24/7/365, not only to protect client possesions but also for your protection. With most places insurance is an extra expense, but that does not mean you should have a nonchalant attitude when running this business. One incident, bad publicity can seriously harm your business.

This business is not as easy as it appears on face value, security is non-negotiable your location needs to be where there is demand, but that begs the question if you have such premises can it not be big to better (more lucrative) use? If you have a building with units that are being rented out, let’s say industrial use, in an industrial area and you have big yard space that is not utilised adding some storage units can be extra revenue. Or if you have an apartment block and some people don’t have cars, garages can be rented out for storage. Or if you sitting on a piece of land you can apply your mind as to the viability of self-storage whether permanent structures or temporary such as shipping containers.