A self-storage business has consistently been a good investment. Even with the current market, Neighbor.com reports that self-storage businesses across the country continue to run at 92% occupancy. The month in, month out for December 2022, was 0.95, which means that for every 100 people vacating a storage unit, only 95 tenants moved in. (Sparefoot.com)
There are ways to turn a self-storage into more than just a storage facility. This helps increase profit for the owner as well as increase traffic from people who might need storage in the future. Let’s look at 4 value additions to increase profit for self-storage.
- Flexible work space
- Boxes, packing and other specialty supplies
- Industrial shelving included units
- Electric vehicle charging station
Flexible workspace
Offering one or two dedicated spots for workspace is a great way to generate new foot traffic. As space allows, create one or two flexible workspaces including a desk, desktop computer and access to a printer. This meets the need some remote workers may have to work quietly or just to print more than they can print at home. A simple per hour charge enables you to offset the cost and eventually turn a profit.
Marketing this space is key to success. Frequent posting on social media will help spread the word about the availability of flexible workspace. Gable has a great article on flexible workspaces with tips on advertising them.
Boxes, packing and other specialty supplies
Most self-storage businesses offer boxes and supplies. If yours isn’t, you’re missing out. Purchasing boxes, packing supplies and other specialty items (tape, paper, bubble wrap) is an easy way to generate income for little investment. The main moneymaker of your facility is storage; however, people need boxes in order to relocate and also ship items. Turn your business into a mini-moving center. Intentional marketing will enable this to be profitable quickly.
Industrial shelving units included
A great way to generate income per unit is to add industrial shelving in a handful of units. For liability purposes, the shelving needs to be industrial with a high weight capacity. Additionally, anchoring it to the wall provides additional security against tipping. These units can be offered in addition to what is already available for a higher rental price. For example, a 10×15 unit without shelving for $100 per month or a 10×15 unit with industrial shelving at $120 per month. Over a year, that’s an increase of $240 rent for a $100 unit.
Electric vehicle charging station
If space allows, consider adding an electric vehicle charging station. There are companies who install electric vehicle charging stations and handle all of the details as well as maintenance. A level 2 charging station can cost $2500-5000 to install with financial incentives from the government. While this may be a more long-term moneymaker, there are more electric vehicles on the road and that number will increase. Electric vehicle owners use apps to locate charging stations when they need one, so they will naturally find yours when they’re nearby. Additionally, marketing this well will strengthen your position locally. If you’re currently constructing a new build self-storage, now is a great time to consider adding this to your property.
The key to success in business is always being able to pivot. While the self-storage market is anything but soft currently, it’s always important to consider ways that you can increase your profit margins with little investment. Business owners must think creatively to remain in the minds of current customers and also gain the attention of new customers.
As the Argus Self-Storage Network Affiliate for the state of Florida (excluding the panhandle), Weaver Realty provides consulting and acquisition services to self-storage investors. We partner with entrepreneurs to ensure their success. Call us today at 904-733-0039 to learn more about working with us.