Self storage is a booming business. With more people moving frequently and accumulating more stuff than ever before, the need for this type of storage is certainly growing, turning it into a profitable venture for business owners. If you've through about owning and operating your own self storage facility, there are some costs that should be factored into the equation. Here are some of the most common costs that you'll need to keep in mind.
In order to ensure that your storage facility stays in good working order, there are several costs associated with the maintenance needed to keep it up. Pest control will be needed to help ensure that customers' items stay free of insects and vermin. Proper maintenance of all working doors and security gates needs be kept up, so you'll need to hire a company who can keep tabs on these items and make sure they're working correctly. There will also be upkeep costs like making sure all lights and security cameras are working, as well as landscaping services to make the storage facility look professional.
Utilities and Taxes
As with any building, the cost of utilities is always factored in. Consider electricity, water, and sewer costs as well as gas if your facility uses natural gas. Garbage fees are important as well, and odds are that you'll need to pay for service for a large dumpster. Many customers empty their units out on premises and could dump excess trash and debris right at the storage location. If you don't want to pay for extra trash removal, be sure you have a very clear policy posted so customers know they must remove all items they no longer want themselves and take them off the property. Don't forget local and regional taxes like property tax, income tax for employees, and sales tax.
Other Overhead Costs
When you operate a storage facility, you should have a comprehensive insurance policy. This policy should cover all property on the premises, liability coverage, fire insurance, and other forms of insurance to protect you from a lawsuit in the event something were to happen. There should also be legal liability and business insurance held. Other overhead fees may include accounting fees, office supplies, postage, and computer costs in order to keep your business running smoothly. You may also need to pay for auctioneer services when customers do not pay their monthly fee, so you can empty out the unit for a new customer. Do not forget advertising fees as well. If opening up and running your own storage facility sounds like something you'd be interested in, be sure to keep these extra costs in mind as part of your business plan.
Talk to a company like National Self Storage - Denver to learn more about the costs involved in operation.