Mini Storage by Tom Markel
Apartments and homes seem to get smaller and our need for storage space gets larger, especially if you have kids. Mini storage units are always a good investment, particularly in urban areas where space is limited and living accommodations tend to be small. If you're planning on buying a mini-storage unit, there are some questions you need to ask before you apply for a commercial mortgage, but they're not nearly as complex as the ones you need to answer about residential or retail space. Storage is a no-frills, simple business that you should make an immediate profit with if you do it correctly.
One of the main questions asked in regards to storage units is about the presence of climate control. In the northern reaches of the country where freezing temperatures are present half of the year, climate controlled storage is essential for anyone storing liquid or sensitive electronics of any kind. The same can be said in warmer climates, where air conditioning is every bit as important as heat up north. If you offer climate control, you can typically charge a little more and should see more interest from prospective renters. Without it, you'll still get clients, but it will take longer to fill all your units.
A business plan for a mini storage facility should include an analysis of competition in your area and a list of your expenses once you open. Your overhead, including your mortgage payment, should be fairly low, mainly consisting of utility payments, property maintenance, and employee salaries. There may also be permits and licenses required by the community you're doing business in and of course fire and theft insurance to protect your client's belongings. Add all these up, figure out how many units you need to rent to cover the total, and draw up a plan to fill those units.
The bank will want to take a look at your business plan before they give you final approval for a commercial mortgage. If you fill out our iBank application form, we'll put it and your plan in front of multiple banks and lenders, increasing your chances of getting a commercial mortgage. There are also private investors on our list that might be interested in your project. Take a look at all offers and choose what's best for you.