Investing in a Mini Storage Business
Scott Schwartz, originally from Minnesota, was brought to Thermopolis, Wyoming, under difficult circumstances. He moved to assist his ailing father in his final days. When his father passed away, Scott was fortunate enough to be left with a share of his father’s stock portfolio. Scott, unable to work himself due to health problems, was grateful to inherit the stocks, but was skeptical of leaving the money in the market. He was confident he could put that money to better use, and with a need for income, he decided to invest in a mini storage business.
Project Details
Building Size
40 x 200 x 8.5
Wall Color
Light Stone
Trim Color
Rustic Red
Roof Color
Galvalume
Roof Pitch
1:12
Location
Thermopolis, WY
Project Consultant
Stephen Birrittella
Project Coordinator
Jonah Goldman
Why Scott's Mini Storage Business is Successful
Here are a few factors that influence the success every self-storage business.
Growth in the Mini Storage Industry
For more than 35 years, the mini storage industry has seen significant growth. As the population continues its trend toward downsizing and renting, vacancy levels are at all-time lows as people simply need more space for their belongings. This is resulting in higher rent and higher profits for mini storage business owners.
Strong Initial Investment
Scott opted for a bigger building, choosing to build a 40×200 instead of the more common 20×100. With the affordable prices of steel buildings, Scott was able to get more out of his investment while allowing for future growth.
Efficient Construction:
Scott was looking to establish a reliable income with what was left from his father. The ability to quickly erect a building allowed Scott to get his business off the ground in a relatively short amount of time.
Easy to Expand
The versatility of prefab metal buildings gave Scott the potential to expand his business in the future. Not only can he expand upon his existing storage units, General Steel designed the building with removable doors to accommodate the needs of various customers. This simple yet effective forward thinking design decision allows Scott to change the size of the storage units that make up the unit mix.
How Long Does it Take to Breakeven?
According to nationalrealestateinvestor.com the average mini storage business takes around 36 months to reach average occupancy levels. This timeframe has decreased by 25% from the previous standard of 48 months.
