What characteristics does the Ideal self-storage property have?

What do you need to look for when you are searching for a self-storage property? Here are four features that can really help your bottom line!

Everyone may have a slightly different business model. However, our business model involves finding properties that have three to four acres of land. This seems to be the best size for the ideal facility. Whether you are looking at vacant land or a property that has an existing building on it, this is a great option. If you are in a densely populated area, you may find that you are going to be on a smaller footprint but have a taller building. That is o.k.

Another important characteristic for an ideal self-storage property is that it has an upside potential. You want this because it is the gravy. This is where you are going to make the most money with the least amount of investment. This is your ability to improve the property and increase the net operating income without spending a lot or increasing your costs very much. There are several ways to do this.

You want to buy the property at the best CAP rate possible based on their current net operating income. A seller is going to want top dollar for the property, but a lender isn’t going to be willing to lend on a property that cannot support itself. If you are working with an overzealous seller, you may want to involve a third party who can explain to them why they cannot get that much for the property.

Another nice feature is if you can get a property with a large parking lot or even one with land attached to it that the seller doesn’t think can be used. Often, you can expand on to that land or use it for RV and Boat storage.

Not every property will have all of these features, but you want to get as many of them as possible when you are investing in self-storage. As always happy investing.