 Self Storage Investing (by Bill [KY]) Oct 21, 2017 3:43 AM
 Self Storage Investing (by Vee [OH]) Oct 21, 2017 5:11 AM
Self Storage Investing (by WMH [NC]) Oct 21, 2017 7:43 AM
Self Storage Investing (by AllyM [NJ]) Oct 21, 2017 1:49 PM
Self Storage Investing (by Colin [IN]) Oct 21, 2017 2:10 PM
Self Storage Investing (by Blll [KY]) Oct 21, 2017 5:53 PM
Self Storage Investing (by Deanna [TX]) Oct 21, 2017 6:07 PM
Self Storage Investing (by TIM [IN]) Oct 23, 2017 9:07 AM
Self Storage Investing (by S i d [MO]) Oct 23, 2017 1:31 PM
Self Storage Investing (by Bill [KY]) Oct 24, 2017 1:59 AM
Self Storage Investing (by Bill [KY]) Posted on: Oct 21, 2017 3:43 AM
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Has anyone taken a stab at managing self storage units? I’m curious about the process when a tenant fails to pay. I’ve read operators frequently hold auctions (i.e. Storage Wars) to recoup some cost, which sounds like a complete hassle to me (public notice in local papers, coordinating with auctioneers, holding on to tenant personal artifacts like pictures, medical records, etc). Anybody have experience with this? Thanks --24.26.xx.xx |
Self Storage Investing (by Vee [OH]) Posted on: Oct 21, 2017 5:11 AM
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You describe what happens in my area, at one time I visited these auctions and spoke with the storage owner/managers and this is how it works, one time I became wide eyed when the bidding was up past 10,000 but someone knew a car was under the nice looking furniture and out came a heavily damaged body of a lambourghini then the cussing went wild when they discovered it was on a late 60's volkswagon bug chassis, it was a relative who did not know what he did not know... --76.188.xxx.xx |
Self Storage Investing (by WMH [NC]) Posted on: Oct 21, 2017 7:43 AM
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There are so many SS units around us I can't imagine how they are staying full. Well actually we know they are not they always have signs up "First Month Free!"
Today's young people don't store their stuff because they don't HAVE stuff, and Boomer are downsizing, etc.
I think SS's wave of popularity might have passed us by. --173.22.xx.xx |
Self Storage Investing (by AllyM [NJ]) Posted on: Oct 21, 2017 1:49 PM
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I'm sure it's much less of a problem than having some jerk leave the windows open all the time, create mold, have rabbits pee and poo on nice dining room tile, leave garbage in the hall all night and on and on. The only thing easier is sit on the corner with a cup eh? --73.33.xxx.xxx |
Self Storage Investing (by Colin [IN]) Posted on: Oct 21, 2017 2:10 PM
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Around here the newer storage place sells the junk on bid13.com. There are signs up, by the road side when these sales are on. --107.77.xxx.xx |
Self Storage Investing (by Blll [KY]) Posted on: Oct 21, 2017 5:53 PM
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They mostly advertise first month free here also and the big boys offer a free moving truck. I’ve read that 85% occupied is considered full in the SS industry but in talking with a few broker friends, all units in our town stay full and rents are up. SS isn’t going away...institutional investors are buying them up left and right. Just got back from a week in Boston, everywhere I looked it seemed I saw a vertical SS facility (the big players). I like the idea of not having leaking toilets, costly turnovers, etc to worry about and making 40-50% of the mandatory renter insurance premium and selling locks through a 24/7 kiosk. Still Not sure if moving someone’s 5x10 unit stuffed full of junk to a dumpster or coordinating an auction is better than fooling with a SFH turnover. Still researching....anybody else have info? Thank you --24.26.xx.xx |
Self Storage Investing (by Deanna [TX]) Posted on: Oct 21, 2017 6:07 PM
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I remember Cat(WI) was in the biz, but I think she got out of it--- the business got very crowded in her area, if I recall.
I'm sure she has some colorful anecdotes about the hassle of disposing of people's belongings at auction. :)
We've been paying attention to the auctions in our area for the last several years. A lot of the people who seem to attend them are generally senior citizens. Younger people aren't interested in other people's junk in the same way previous generations would latch onto other people's antiques, back in the day. And they're not really in that "hey, this looks useful, I think I'll buy it in case I happen to need it" mentality, either.
Some things will always sell: guns, anvils, farm equipment. But just boxes of generic stuff... a lot of it is cheap junk and isn't worth the hassle of storing it long enough to get it to auction. --96.46.xxx.xx |
Self Storage Investing (by TIM [IN]) Posted on: Oct 23, 2017 9:07 AM
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Pros:no toilets, less maintenance. Cheaper to build...
Cons: lots of competition, struggle to get money collected, higher vacancy rates
I see a lot of them fail or struggle. A few have big success. The ones that are making it: good location and good mgmt in place => Key to any RE investment... --67.143.xxx.xxx |
Self Storage Investing (by S i d [MO]) Posted on: Oct 23, 2017 1:31 PM
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I think a key component that others have hinted at is that self-storage is more of a business than simple investing.
I have looked at getting in to self-storage around my town and it is very competitive. Space is a commodity: your 5x10 shed is the same as my 5x10 shed, so the only way we can compete is by who offers the most desired amenities: prime location near your customers (Google search the "1/3/5 rule self-storage"), 6 foot tall fence, camera and motion light security system, 24/7 gated access, etc. One of the biggest advantages I saw at the Mr. LL Convention this year was the kiosks and online rental software that take payments, give out codes, etc. This all but eliminates the need for an employee to monitor during the day. However, to truly monetize the opportunity, one should also consider selling retail items: packing supplies, straps, tie downs, renting trailers, specialize storage (climate controlled, wine bottles), etc. Basically go to a U-Haul store near you and see what they sell inside. Those are high profit margin items and will likely require 1 or more employees.
It's a fascinating business, but it is a business...not an investment. Unless you are just opening the mailbox or tallying up deposits in your bank account, be sure you also factor in a manager's salary even if you pay that to yourself.
For more information, check out the blog "learnselfstorage". --173.19.xx.xxx |
Self Storage Investing (by Bill [KY]) Posted on: Oct 24, 2017 1:59 AM
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Thank you Sid --24.26.xx.xx |
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