Though upgrading your self-storage business before selling seems counterintuitive, it can be beneficial to maximize the value of your property and get the biggest payout when you’re ready to sell.
Investors looking to purchase self-storage facilities are pragmatic. They’re primarily interested in acquiring the business’s current income, not investing capital in a facility that has potential but needs work. Easy improvements to your business can make your facility more attractive to buyers.
Should I Renovate My Self-Storage Business Before Selling?
If you’re preparing to sell your self-storage facility, you should make any renovations that will improve the value of your property.
Having a professional broker conduct a valuation is a great way to have an impartial analysis of your business’s weak spots that could call for improvements.
Renovations and improvements can be small and cost next to nothing. However, they can still have a big impact on your facility’s overall value. If you have the capital to work with, larger investments can provide even greater increases to your business’s worth and attract buyers.
Improving your facilities also allows you to raise rental rates, which provides a larger income to maximize your appeal to potential buyers.
Ways to Upgrade Your Self-Storage Facility
Small improvements can significantly impact the value of your self-storage property. You can make the most of your facility without investing too much money through the following renovations:
- Pick up debris and tidy the property
- Repair any broken lights, locks and signage
- Clean the gutters
- Apply some fresh paint
- Do minor landscaping tasks
Other more expensive upgrades can also greatly increase your potential payout, including:
- Replace or repair walkways and parking lots
- Install new security features such as cameras and gates
- Upgrade programs to optimize operations
- Add new storage units to unused land
How to Prepare Your Self-Storage Facility to Sell
Your first step toward selling your facility should always be a professional valuation. Then, you’ll know exactly how to improve your facility to receive the maximum sales value the market will allow. The second step is to address your weaknesses and make value-adding improvements.
In the course of your renovations, ensure every part of your business meets construction codes and any other regulatory standards for your area. Failure to meet these standards will come up in inspections and lower your property’s value because the new buyer will have to make changes to meet these regulations.
Once you’ve completed all your improvements, you should schedule a second valuation to see how you’ve improved and decide if your property is ready to list.
Get Started By Scheduling Your First Valuation
At Investment Real Estate, LLC, our team of experienced brokers is dedicated to helping self-storage property owners maximize their payout when selling their businesses.
Contact us today to set up a free valuation or find out more about how we can help you increase your facility’s value and match you with the best buyers.