Prefab Buildings Insight: Risks and Rewards of Mini Storage Investments
Prefab buildings are a cost-effective option for developers who are contemplating a mini storage investment.
Using prefab buildings for mini storage investments is a popular choice among property developers. That’s because they offer a combination of cost-effectiveness and durability that’s hard to beat.
But before you get to the planning stage, it’s a good idea to explore your intended market to see if a mini storage operation is viable in your area. As with any business venture, there are pros and cons that need to be considered before you proceed.
Compared to other property investments, such as apartment buildings, mini storage complexes are relatively low-stress because your tenants don’t live there. That means:
- No toilets
- No evictions
- Minimal cleaning
- Low utilities
As such, you’re a lot less likely to encounter irate tenants. As long as you have a full-time onsite manager who is competent and answers the phone, things will run smoothly.
Plus, prefab metal buildings require minimal maintenance and are designed to withstand the daily wear and tear caused by people moving their belongings.
This will be one of your primary concerns in determining whether a mini storage investment will take off. By discreetly surveying existing companies in your area, you’ll learn:
- Their occupancy rates
- The type and size of storage units they offer
- Storage rental rates
- Condition of their facilities
If there are already mini storage units in your city, it shouldn’t discourage you. By understanding their strengths and weaknesses, perhaps there’s a way you can exploit the market.
Perhaps you can construct prefab buildings in a high-traffic area that will draw customers away from competitors. Or, you could try customizing your buildings to offer an array of storage options to earn a wider market share. This could include:
- RV and boat storage
- Heated storage units
- Drive-up or drive-thru storage
- Commercial lease space
“If you build it, they will come.” It would be nice if that move quote from Field of Dreams applied to mini storage sites, but that isn’t really the case.
In addition to promoting your business through your website and phone directory, it’s also a good idea to get your name out there through:
- Newspaper ads
- Radio ads
- Social media
You can also use your prefab buildings as a promotional vehicle by matching the exterior colours with your logo and branding. Once you start to develop a clientele, you’ll be able to rely more on word-of-mouth advertising (providing your customer service is up to scratch).
Return on Investment
Once your mini storage operation is up and running, and you’ve developed a consistent occupancy rate, you’ll be off and running. Prefab metal buildings maintain their appearance and, therefore, hold their value. Should you decide the sell the business at a later date, you can expect a significant return.
If you’re planning a mini storage project, call Metal Structure Concepts. We’ve developed more than 20 successful mini storage facilities across BC using prefab buildings.