Shipping Container Self Storage Business

[Aleks Gifford]

I own several lots that are Zoned I2 in Indianapolis Indiana. Based on the zoning I can do nearly anything I want.

I am looking for a low neighborhood impact business that has a high cash flow with low entry.

My thought is in buying shipping containers and packing them in tight on the lot and creating a commercial storage business.

By my estimates the property could generate up to $96k a year with less than 1 year's income to reach full build out.

Any one have experience with this model? Shipping Container Sources that can deliver and are reasonably priced?

pitfalls?

I think I have hit on a decent business that could employ 1 or two people and still generate a very reasonable return.

My thoughts are the renter's would sign a loss and liability wavier and I would provide security cameras and lighting.

[Gordon Forbes]

Some pretty amazing technology has come on the self storage scene recently. From fully automated Kiosks (an ATM looking thing that rents the unit, sets up auto billing on tenants bank or credit card, dispenses a lock if the new tenant wants to buy one etc), to smart phone Apps that do the same thing (except vend a lock) to 24 hour USA based call centers that will manage the business and rent the units for those customers who want a human to talk to (and the Kiosk software, smarphone App software, and call center sofware can all be seemlessly integrated within your business management software. There are even companies who set all this up for you. 

Behind the counter employees are a huge expense (unless you are a multi hundred unit facility) and if your competitors use them and you do not then you can either undercut their prices or reap more profits. There are "smart locks" that will even automatically lock out slow paying tenants. Pay someone a few bucks (found thru fivr, task rabbit, or craigslist) to walk thru and use their smart phone to upload a video to you on the condition of the facilities once a week or so. 

To check if there is demand for storage units in your area there are companies who will do a marketing study for you (costs a few grand) or you could run some ads and see if people call. Of course call all your competitors and pretend to be a potential renter and see what their occupancy rate is. 

In addition to storage containers (which can be costly to have delivered depending upon where you are located) there are a few companies that actualy make a "portable" single storage building that are shipped flat and you tilt up the walls and have a rentalable "no building permit and no tax hit" unit ready to rent in a couple of hours. When set up side by side they look just like the onsite built metal storage buildings we are all used to seeing but they are not a permenant structure. They make these in all the standard sizes people expect storage units to be available in.

There is/was a huge need for storage space in my neck of the woods and I came "this close" to buying some shipping containers and doing exactly what you are thinking. Fortunately discovered that a multi hundred unit facility had just been approved nearby so I dodged that bullet. 

So, I could walk upstairs and dig out all the links and contacts and web sites for the research I did on self storage and post it here for you.... but I just sat down, opened an adult beverage, I'm lazy, and besides searching Google for all this will be half of the fun. Enjoy and best of luck.