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ARTICLE -
Why in the World Would I Buy a Mini-Storage? by
Robert Poe Mini-storage
facilities are excellent opportunities for the
first-time-or even the savvy-investor. Compared
to many other businesses, mini-storages are
relatively straightforward in operation.
Overhead and maintenance are extremely low
compared to, say, apartment buildings, hotels,
or retail investments. In addition, mini-storage
facilities have a historically high return on
investment. Check out this article about
mini-storage trends and capitalization rates.
Consider this: a
mini-storage is a retail business that uses real
estate as its primary asset. Therefore, you have
the benefits of both a business and a real
estate holding. A mini-storage located in the
right geographical area can have a wide variety
of customers, ensuring a stable cash flow.
So, where are your
potential customers? Though they may be in rural
communities, chances are you’ll have better luck
closer to towns/cities. Advertising is key when
it comes to mini-storage facilities; your
customers include anyone driving by your
facility, or anyone “surfing” by on the web…your
competitors will be on the internet, so you
should have a presence there as well.
One word of
caution with respect to advertising: avoid
gimmicks. Giving customers “one-month free”
storage rental has a tendency to result in
customers who want a place to dump their
junk-and that’s junk you’ll be cleaning out in
the second month.
- Submitted by
Robert Poe, CCIM, Certified Short Sale
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