Self-Storage Conversions Can Be Done in Phases Instead of All at Once!

Any time that you are converting a property, remember that you can do it in phases to keep costs under control. There are a few big ticket, messy items that you should consider doing in the first phase, but after those are completed, you can wait until you are profitable to do the other phases.

If you have a 90,000 square foot building, for example, you can convert it in 3 or 4 phases. You might start by getting the first 30,000 square feet updated and then once that is 75% occupied you could begin converting the next 20,000 square feet. Then once that is occupied, you can do it again. This way your property can be profitable while you are in the conversion phase.

One thing that is critical is that you want to make sure you do all the dirty work in the first phase. For example, you want to do all the paving, sewer, concrete, & roof in phase one. You don’t want your property to look like it is under construction for years. You have a hard time renting your property when it is under construction. However, if you complete the obvious things, then you don’t look like you’re under construction while you do the other phases.

Your roof is one of the most expensive parts of a conversion, but you have to do it first because you can’t have a leaky roof over your tenants’ belongings. Repairing a roof isn’t usually worth it, it is usually better to just put a metal roof on top of the existing roof.

Whether or not your conversion is going to work depends on the rents. If your rents can’t support the cost of the conversion, then you want to look for another property. However, if you have a property that will support the upgrades and the purchase, then you should move forward with your diamond in the rough. As always, happy investing.