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.