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308. How to Run a Small Self Storage Facility (and Automate It!)

Season #1

Investing in small self storage facilities is how almost everyone gets started. It’s where we began investing and probably where you did (or will), too. But sometimes small is a little too small. With too few doors, your expenses can quickly outweigh your revenue. Too big and you need to hire a manager. What’s the “sweet spot” in square footage that makes a great beginner self storage investment that’s easy to automate? We’re sharing it today.

 

Did you know that, even after investing hundreds of millions in self-storage, we still buy small facilities? It’s true. But, because we own so many, we know the pitfalls of running one, and how to automate it so you can work less—without hiring a full-time manager. How much do these facilities usually cost? What’s their profit and expense ratios? And what tech do we use to let customers rent without a single interaction from us?

 

If you’re about to buy, or currently own, a small self storage facility, this is your guide to running it right. Plus, if you’re a new investor, we have some cash flow tips that could save you when onboarding a new facility and all those expenses hit you at once—while you’re also chasing down rent payments. This could save your sanity next time you buy a small facility!

 

What you’ll learn in today’s show:

  • The square footage “sweet spot” that is big enough to profit but small enough to automate 
  • Why you should always (ALWAYS) look into a line of credit before closing on a facility 
  • The different types of hidden costs you’ll incur once you buy a self storage facility 
  • How small is too small (it’s NOT worth the investment)
  • The actual expense ratio of a small self storage facility (it’s not what you think) 

 

 Get my FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/start-podcast 

🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/ 

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest