Storage Rental Business: how to succeed in this profitable business

The gradual increase in housing prices has forced more and more people to resort to smaller apartments. This phenomenon has made the sector of storage room rentala very profitable business that allows you to undertake without too much investment or excessive dedication time.

This factor, added to the fact that the vast majority of apartments offered for sale do not include storage rooms, has led to a exponential growth of the sector rental of storage rooms in recent years. Although this business model arrived in Europe in the 1980s, according to the Spanish Self Storage Association, it has only been in the last decade that it has fully penetrated the Spanish market.

Previous Considerations When Starting a Storage Rental Business

The location

Location is a fundamental aspect of being successful with a storage room rental business. The premises must be located in a residential area and easy to accessbut at the same time be large enough to house a minimum number of storage spaces that allow the company to be profitable.

Also, having a small car park or loading and unloading area This would be a plus to be taken into account by certain customers who wish to store heavier goods in the storage rooms…

Design and construction

Once the premises have been selected, the design and construction of the storage rooms is one of the most important aspects before embarking on this activity. In this task you need find the most profitable formula without sacrificing quality and the good image that is assumed of a business in which customers can store some of their most prized possessions.

Storage Rental Business

Security and customer service

Security is one of the conditions that customers value the most storage room rental. For this reason, you should focus your investment on 24-hour video surveillance systems, alarms and sensors with direct connection to the police, security locks…

Moreover, although companies dedicated to the rental of storage premises do not need too much time to work once launched, customer service is one of the aspects that make the difference. This attention can be face-to-face or over the phone, but you must give a quick response to customers they may encounter some sort of problem while trying to access your storage space.

Rates, schedules and conditions of use

Finally, when designing the business plan of a furniture storage rental company, it is necessary to clearly define the prices, opening hours or conditions of use. In this sense, Spanish companies dedicated to this sector offer the possibility of renting storage space from 15 days minimum.

Also, rates can vary depending on the size of the space, so have several options and models of storage rooms They can help you attract more customers. Finally, the opening hours are another important aspect: you can open during business hours, 12 hours a day… Or opt for a 24/7/365 model, in which your customers can go to their reserves when it suits them best. .

Storage Rental Business

How much does it cost to open a junkyard business and what is your return?

Depending on the size of the space, its location, or the investment you decide to make in building the storage rooms, the initial investment you will need to make will vary greatly. For example, I need a riddanceone of the brands that operate in this sector under the franchise model, envisages a minimum investment of around 40,000 euros, including an entry fee of 12,000.

But what is the annual return of a storage company? Some expert voices place the average profitability between 5% and 7%a considerable sum considering that it is a business where maintenance and working time can be reduced after taking the first steps as an entrepreneur.

Leave a Comment