Welcome back to our next article about why self-storage investing is a “dime”. With there being varying types of facilities to purchase or buy, it is important to consider each varying type to decide which is best for you and for the area you will be marketing to. Today, we will be considering drive-up facilities. We want to identify what kind of storage these cater to and why. But first, let’s see what makes up a drive-up self-storage facility.
What are they?
Drive-up facilities can be likened to a one car garage! They provide customers a place to store their items with the added convenience of being able to drive right to them with a vehicle to load or unload. These facilities are usually very basic and have no frills. Most will not have any climate control in them and security is very basic.
Who are they good for?
These sorts of facilities are excellent for those who value convenience. The ability to simply drive up and be at your things is worth the few small inconveniences. It will be important to remind your tenants of a few things, though. These types of facilities, especially if not climate controlled, aren’t appropriate to store just anything and everything. Antique furniture, food, and anything else that is temperature sensitive may be ruined if put into the wrong type of facility. Also, equally important is that their possessions are not covered by your insurance. If water gets in there or if something is stored that shouldn’t be and is damaged, that will need to be on their own insurance. They should also note that the most common type of door used on this kind of facility are roll doors. These are not impervious to the elements and often dust will still get into the unit. All that is needed is for things to be covered with a tarp. So, what should be stored in these units?
· Household items during a move
· Restored vehicles
· Dorm items when school it out of session
· Seasonal décor
· Outdoor recreation items
Who are you marketing to?
With owning this type of facility, it will be imperative to figure out who your customer base will be. Most commonly, you will see families using this particular type. This is a great customer base to market to! Families always have an over abundance of “things” that will need to be stored. Life changes such as birth of a new child, loss of a relative, divorce, and the like will cause people to not have enough space and to have to begin storing their items outside of their home base.
We have already established that these facilities main draw is the ability to drive right up. They have other beneficial aspects to them, too! They are easy and cheaper to build. They require little maintenance since you won’t typically have and onsite office or bathrooms to care for. For your customers, the roll up doors allow for optimal storage space! No need to worry about opening a door in! The facilities hours are usually more flexible as well. This allows busy customers to have access as often as their busy schedules allow. Another benefit is that because they are approximately the size of a single car garage, they have wide openings allowing large furniture, appliances, or even a car easy entry.
It is no secret that self-storage facilities are abundant. But they also have a high occupancy rate! Considering where you will be building or buying really is the best first step in deciding if a drive-up style facility is the best option for you.
Thanks again for joining in this week! Chat next Wednesday!