Are you looking to improve your self storage investment? Of course you are!
The words improving your investment are often music to an investor’s ears. What may surprise you is that some of ways to maximize your self storage investment require little time and money. Even better.
1. Raise Rents – Carefully review your management reports and specifically the rent roll to determine the rent variance. The rent variance is the difference between your standard rental rate per unit versus the actual rent being paid by a customer. Don’t let customers get a bargain rate any longer. Try to increase those customers up to the standard rent and you should make thousands of dollars more per month and of course, annually. Since the average customer stay is about 10 months, try increasing the rent after 6 months, then annually thereafter. If you miss the 6 month opportunity and they stay for 10 months, you never get the opportunity or the benefit. Do this at least a year in advance of selling. If you do it right before you go to market, buyers will not give you the dollars you deserve since the new income is not part of your trailing twelve months of revenue. Result – an additional $3,000 per month at a 10% cap rate equals $360,000 in property value.
Check out the rest of the list. Some of the suggestions may surprise you. Who would have thought things like making minor repairs and putting on fresh coat of paint could really help take your self storage investment to the next level?
Want some customized advice? Call an expert 717-779-0804 and get a free self storage valuation of your property.