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The Business of Owning a Storage Unit Business

Saturday 22 January 2022, 7:20PM

By Premium SEO NZ

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Storage units are both a business and a form of real estate investment, which makes it an appealing option for many looking to diversify their portfolio or take on an entrepreneurial endeavour. Current data also indicates exponential growth in this subsector thanks to a sharp uptake in demand for storage units, making it a viable long-term investment. But investing in a storage unit business is not as simple as buying units and then sitting back and watching the money flow in.

Location

For one, you want to ensure that the units are located in a good area. Just like location can determine the selling price of a private residence, a prime storage unit location could mean the ability to charge premium prices and still being assured your units will be filled. A good location with high accessibility and visibility is also key for brand awareness. And there should also be space for future expansion.

Business model

You’d also need to consider whether you would want to invest in an established franchise or begin a start-up. Buying into an established storage unit brand could mean a lot less marketing, pricing, and operating-related admin. But, buy-in can be pricey, and you might not like the way the franchise operates. In that case, going it alone could be the better option – just be prepared for steep competition. 

Unit type

One last consideration would be the type of unit(s) you’d wish to rent out – transportable? standard? climate controlled? All these have their own pros and cons and will appeal to a different type of clientele. Your location might prove a key variable in the final decision. 

Before jumping head-first into a storage unit investment, do your homework to be sure that you’d be getting the most out of what this kind of investment can return.