In any business, self storage as well as any other, there is always a need or desire to be on the cutting edge of the industry. People are always going to want the latest and greatest thing, whatever it is, so success in business is often predicated upon bring the first to have the new toy in town.
In some cases what this refers to is finding a unique and different way to put a spin on whatever your business has to offer. For the self storage industry, finding a new and innovative way to package the concept of providing people with space for their storing pleasure may seem pretty hard. However, there are some self storage facilities that are carving out a very specific niche for themselves—self storage condominiums.
The idea behind them is really pretty simple. People spend a lot of money on some of the things that often get put into storage, i.e. boats, jet skis, classic cars. While storing them at home may not be an option, how appealing is it to entrust your very expensive prized possession to a room that cost less than a tank of gas and a lock that cost as much as much as a fast food value meal?
People with the money to afford those kinds of toys are quite likely willing to go the extra mile when it comes to storing them. They may also be up for a good investment; something that could later turn them a tidy profit. That is where self storage condominiums come in hand.
Rather than rent a self storage unit at a facility, self storage condominiums give tenants the chance to own their unit instead of renting it. While this is essentially a luxury item for those that can afford it, there are some benefits that do make it appealing.
Since much of the money is received up front in pre-sales, self storage condo facilities are able to offer much more in the way of amenities for tenants. The cost for them all is manageable for the owner to recover since they can be added into the sale price for each unit.
Better security is often included in the sale price as well. Since the majority of a tenants neighbors will be the same people for years, a sense of community tends to develop that helps recognize when someone is there that does not belong.
Financially, they can turn a pretty decent profit. Rather than spend your money on rent, you actually get to build equity in something. Just like buying a condo to inhabit, this one can very easily be sold for a profit whenever is necessary as well.
Self storage condominiums started to appear around 2005, but have fallen under hard times due to the same financial crisis that the housing market is going through. Where interest still remains, as it does in the case of self storage condominiums, the potential for future/continued growth still exists.
“The storage-condo market might represent a profitable niche in many locales,” Jim Stratton, a real estate and development consultant says. “But careful study of demand, supply and financial feasibility is essential to success.”
“Self-Storage Condominiums: The Advantages, State and Future of this Niche Investment Opportunity.” Inside Self Storage; 10 May 2011.
“The Benefits of Developing Condominium Self-Storage.” Inside Self Storage; 13 October 2008.