Self Storage - startup

[Justin Klein]

Hello all those with self storage investments.

I'm writing to get some feedback on a recent investment opportunity in the self storage space in Michigan. I am looking to startup a family business with my dad and sister. We plan to start with two buildings until full and add more after that. The property has been purchased and no financing would be needed for this initial startup. I have a few questions:

1) is starting this small on storage units too conservative? 2 buildings with about 30 units of varying sizes in each. 

2) 3 stakeholders - any feedback for dividing tasks amongst 3 individuals and then ultimately dividing profits. Do you pay an investor based on equity invested and divide based on share or if one person does the maintenance, website, booking keeping, etc, do you "pay" that person for the worth of the function and treat it as a business expense?

3) security for a small town storage - if the liability is with the customer, but not having a fence or security system or lighting, would it deter people from renting or does the cost of installing tend to pay itself off?

Sorry, lots to learn. Just trying to do a bit of research. 

Thanks,

Justin

[Mark Byrge]

I bought one that was already established. I agree with your thoughts, just know that you can charge more of a premium with security systems in place. Additionally you will end up saving yourself money everytime you don't have to drive to the facility of you can do it from home.  At least make the provisions for upgrades during construction. (I.e. Running cables/power lines underground before putting down your drive surface) This will allow you to add later without having to tear up your drive and will expedite installation at a later date.