Why Converting Your Self-Storage Project in Phases Might Help!

In a lot of areas, all of the self-storage facilities are owned and no one is planning on selling them any time soon. When you run into those situations, you have two options, build a new facility, or convert an abandoned property.

There are so many commercial pieces of property that have been sitting empty for years waiting for you to come along and reimagine them into self-storage. The advantage of conversions is that you are typically renting faster than new construction and your properties are usually already zoned for self-storage. Don’t ignore this gold mine for self-storage opportunities.

Another advantage to converting a building into self-storage is that you can do it in phases. You always want to get the messy work done in phase one, but then you can break it up into 3 or 4 phases. You can start by getting the first 30,000 square feet ready to be rented and then once that is 75% occupied, you can move on to the next 20,000 or 30,000 square feet. This way your property is profitable while you are converting.

The dirty work needs to be done in phase one. These are things like your paving, and your sewer and your concrete work and finally the roof. There are a few reasons for this. One you don’t want to look like you are under construction. You will have a very hard time renting your property if you look like you are under construction. You want the building to look finished from the exterior. Second, you need plumbing for your renters and office manager. You need the roads paved so that your renters can easily access the property and you do not want to have a roof that leaks all over your renters’ belongings. By completing these things, you will be able to start renting the property out.

You will always want to do your roof at the beginning of a project if you have to fix the roof. If you have a leaky roof, replace it. You don’t want the headache of having to repair the roof over and over and over again. The cost of repairing the roof repeatedly ends up being more than just putting a metal roof on top of the existing roof.

By allowing yourself to convert in phases, you allow yourself to start bringing in cashflow on the units that are ready to be rented. This helps defer your costs. Conversions are a great way to get into self-storage. Think creatively and start considering possible self-storage conversions. As always, happy investing.