What are the most effective strategies for increasing the value of a self-storage facility?

Upgrading a storage facility to enhance value focuses on streamlining the rental process. By introducing internet-based booking, we eliminate the friction present in traditional methods, like mandatory phone calls. This ease of use appeals to modern tenants, making them more likely to rent. Our strategy targets any potential hassle in renting and removes it, leading to a smoother customer experience. Consequently, tenants are less price-sensitive, allowing for reasonable price increases. Even a modest $10 hike per unit significantly boosts the property's net operating income, as it adds up across multiple units. Thus, by prioritizing convenience and efficiency, we not only attract more tenants but also increase the facility's overall value.

Increasing the value of a storage facility often involves expansion, particularly when additional land is part of the original sale. For example, acquiring a property with vacant land zoned for storage, we can usually add more units. Suppose the cost to construct new units is $50 per square foot, but this addition increases the facility's value by $70 per square foot. This difference represents a significant return on investment. Take a 10,000 square foot expansion: it costs $500,000 but boosts the property's value by $700,000, enhancing the facility's worth by $200,000. This strategy not only augments the facility's capacity but also substantially elevates its NOI and value, making it an effective approach for growth and profitability.

Refinancing is a key strategy to recycle capital from your self storage investment. After enhancing a property's value through upgrades or expansions, refinancing helps in realizing the returns on these improvements. For instance, if an initial down payment of $1 million acquired a $4m property, we will refinance once we can get an LTV that gives us a $4m new loan. Refinancing allows the retrieval of the initial $1 million. This capital can then be reinvested in similar ventures. Additionally, this approach avoids the tax implications of selling, making it a more financially wise option. It's a cycle of investment, improvement, and reinvestment, maximizing returns while maintaining property ownership.

Automation and elimination of on site manager . Adding a moving company has been known to help too. Can also make money from insurance