Need advice on converting land into self-storage
Category: Self-storage
1 replies
Original post
Hi all, I inherited several acres from my parents? estate and have been renting it out as parking space for trucks, trailers, and other large equipment. Now, I'm exploring the idea of converting part of the land into a self-storage facility to add more stable income. I've read a bit about traditional storage units vs. container storage, but I'm unsure which approach is more practical and affordable for someone just starting out. If anyone's gone through this process, I'd love some guidance on costs, zoning considerations, and any recommendations on setup to keep expenses manageable.Reply by Brian
I only feel somewhat qualified to answer this because my dad owns a self-storage facility and used to discuss this same predicament with me. Container storage is more affordable because there's less overhead involved. Traditional self-storage units typically need climate control, greater security, and facility upkeep.
That said, the factors I just mentioned can also be advantages of self-storge facilities. It really all depends on you and what you want to do. My dad bought his storage facility for around $2 million. It's mostly boat storage and he charges around $250 per month for each boat.
The fact that you own the land already is a massive advantage. I would look for nearby competitors before you take the leap. I would also factor in your location and expected population growth. Location is a major component for any kind of storage.
The initial costs will vary depending on location. In a smaller town, you might pay around $1 million for a 35,000 square-foot facility. A facility double that size might cost you around $5 million. An average facility typically covers a few acres, so hopefully you have that part mapped out.
I'm going to stop here, though, with the self-storage facility. In your post, you stated which one is more practical and affordable for someone just starting out. Container storage fits this bill. The cost is lower, the barriers to entry are lower, they fully open, and you can add, relocate, remove, and shift units around with ease.
As for laws and zoning considerations, that all depends on your location. Do your research and be very careful. I always go see a lawyer in the field if I have questions or am unsure about anything. Why put yourself at unnecessary risk?