Selling a self-storage business requires the same careful thought put into acquisition. When purchasing a self-storage, it’s important to consider location, physical assets, units available, income, profitability, and even room for growth . These items are still important; however, there is more to consider when selling a self-storage property. Let’s cover three things to consider when it’s time to sell a self-storage business.
- Property Value
- Clean Up the Property
- Consider Improvements
Property Value
Start the sale process by determining the business net operating income. The net operating income will determine the value of the property. Be sure to consider all income factors including rental income, truck rental income, and other income (boxes, packing supplies, locks, late fees, and any off-site management fees. Include all sources of income for the business to come up with the proper valuation.
Maximize the business income before putting the property on the market. Assess if rent increases are necessary and execute. Make sure that owner-used units are being paid for because this impacts the property valuation as well. Look for ways to utilize open space. Offering parking space for boats, RVs, and other large vehicles is an excellent way to increase income potential.
Look for ways to cut expenses. Anything unnecessary should be eliminated.
Clean Up the Property
Buyers are looking for a clean and well-maintained self-storage business. A property inspector is a helpful investment to highlight costly issues that might lower the property value. Paying an inspector to determine the needed repairs allows these issues to be handled before bringing the business to market.
Remove trash and debris. Complete any needed visible repairs. Remove unnecessary clutter from indoors and outdoors. A fresh coat of paint can transform the inside of your business quickly and without much expense. Selling a business is a lot like selling a home. Make it look the best it can in order to get the best offer from interested buyers.
Consider Improvements
Capital improvements may add value to the self-storage business. It’s important to consider this to get the best price for a business. For example, an outdated website may deter potential customers and interested buyers. Investing money in a new website may attract better offers. Similarly, adding parking spaces to expand income potential may be a worthwhile investment to increase the property value before sale.
An expert broker like Coastal Storage helps navigate the details of preparing to sell a self-storage business. Our expert associates remove the guesswork and answer every single question along the way. Our goal is to make the process smooth, simple, and profitable for clients.
Coastal Storage is a trusted self-storage brokerage firm. As the Argus Self-Storage Network affiliate since 1999, we look forward to serving clients for decades to come. Contact one of our experts today at 904-591-0140.