As the world becomes increasingly digitized and more people live in smaller spaces, the need for self-storage rental businesses is on the rise. In 2018, the United States accounted for 90% of self-storage inventory worldwide due to its large population and high demand for storage space. And according to a report by Statista, the global self-storage market is expected to grow from USD 48.02 billion in 2020 to USD 64.71 billion by 2026.
People rent self-storage spaces for a variety of reasons. Some people need to store extra belongings when they move, while others need to store seasonal items such as holiday decorations, and others often use them during renovations to store furniture and appliances. With bigger self-storage spaces, they can also be used to store cars or motorcycles in a safe and secure location.
If you’re thinking of starting a self-storage rental business, there are a few things you need to keep in mind to ensure your success:
Location is Key
When choosing a location for your self-storage rental business, it’s essential to consider the area’s demographics. Are there a lot of people moving in and out of the area? Is there a high demand for storage space? Is the location easily accessible and close to major roads? Aside form asking yourself these questions, you should also consider the competition in the area. If there are already a lot of self-storage businesses, you’ll need to find a way to make your business stand out from the rest. One way to do this is by offering lower prices or providing additional services such as 24-hour access or on-site security.
It’s important to ensure that your storage building is durable. The entire structure must be able to protect the items stored inside and withstand the elements no matter how harsh the climate may be. With this, durable construction materials include metal, concrete, and brick. By maximizing their use in your building’s construction, you can ensure your building’s strength, stability, and weather resistance. For instance, if your area is prone to heavy rains, you need the right roofing type to protect your entire building from inclement weather. You can achieve this by using corrugated roof sheets to create a more weather-resistant, longer-lasting self-storage unit. By using quality materials, you can avoid frequent future repairs and replacements, saving you time and money in the long run and maintaining your storage tenants’ satisfaction with your units.
Aside from the building’s durability, your storage rental business will need to be secure to ensure the safety of your customers’ belongings. There are a few ways to add security to your storage facility, such as CCTV cameras, alarms, and gated entry. You should also have a clear policy regarding who has access to the facility and when. The last thing you want is for your tenants’ belongings to get damaged or stolen, so make sure you use high-quality materials and install dependable security systems when constructing your building. By taking these security measures, you can give your customers peace of mind knowing that their belongings are safe and secure.
Permits, Licenses, and Taxes
The required permits, licenses, and taxes for a storage rental business can vary greatly from state to state. So be sure to research the requirements in your state before starting your business. But in general, you’ll need to get a business license, a sales tax permit (if you plan on selling storage related items), and a zoning permit (if you’re running your business from a commercial location). Regarding your taxes, this would also depend on what type of business you register as. For example, if you register as a limited liability company (LLC), then you’ll be taxed as a pass-through entity, meaning if your business is a single-member LLC, then you would likely have to manage taxes similar to a sole proprietorship.
When starting a new business, one of the most important things is to identify your target market and strategize how you can reach them. One way to identify your target market is to look at who is currently using self-storage facilities in your area. Are they individuals or businesses? What type of businesses? What size businesses? Once you have a good idea of who your target market is, you can begin to think about how best to reach them. You may consider advertising in publications catering to your target market or reaching out to local businesses directly. You can also offer special terms or conditions for certain types of customers. By taking the time to identify and strategically reach your target market, you’ll be well on your way to starting a successful storage rental business.
Starting a storage rental business is a great way to make money, but it’s important to be prepared for the challenges you’ll face. With a little hard work and dedication, you can create a successful storage rental business that meets the needs of your community.