Self Storage - General Rule of Thumb/Assumptions

[Taiwo Okusaga]

Hello Storage Facility Owners and Operators,

I'm reviewing the financials for some properties and seeking your collective wisdom on the operational benchmarks for running these facilities efficiently.

We understand that, on average, total expenses for a well-run facility should equate to about 35% of the Gross Income. However, I'm interested in more detailed guidelines regarding the specific categories of expenses and income, as well as any operational assumptions you might advise.

For instance:

General and Administrative Expenses: How do we determine if costs related to software, credit card fees, office supplies, etc., are reasonable based on the size (square footage) of the facility?

Management Fees: What's the typical percentage of Gross Income that you're seeing as a cost in the current market?

Insurance: Is there a standard percentage of the sales price that's considered competitive?

Payroll: At what facility size (in units or square footage) does it become necessary to hire full-time staff?

Replacement Reserves: What's the average cost per unit, and what conservative figure should be used in financial planning?

Contract Services: Including expenses for trash removal, landscaping, snow removal, etc., what are the average costs per unit, and what conservative estimates should we use?

Repairs and Maintenance: What percentage of Gross Income are you allocating to this category in your operations?

Additionally, are there any other rules of thumb or key indicators you would recommend monitoring to ensure operational efficiency and profitability?

Your insights and experiences are invaluable, and I look forward to your input and the ensuing discussions.

Thank you in advance, BP community for your responses, insights, and discussions on the above topic.