How to Start a Self-Storage Business? Everything You Need to Know

Starting a self-storage business might be easier than you think. Investing in self-storage facilities is attracting increasing attention. Especially in countries where such facilities have not been widely popular until now, they are sprouting like mushrooms after the rain. This trend responds to the growing need for storage solutions in a world moving at an ever-faster pace, where space in homes and offices seems to be shrinking. Is establishing such a business a steep climb? In this guide, we’ll walk you through the key aspects of the process and highlight what to focus on to make your investment a success.

• Self-storage is a service that involves renting storage units, lockers, or containers to individuals and businesses.
• There are two main types of self-storage facilities: indoor and outdoor.
• The average profitability of such an enterprise can reach up to several percent annually, and in some cases, even more.
• Building a self-storage facility is a business idea that requires meticulous planning. Key factors to consider include location, legal requirements, additional services, and even marketing.

What Is Self Storage and Why Is It a Growing Business?

Let’s start our journey with the basics. To begin with, self-storage is a service that involves renting storage units, lockers, or containers to individuals and businesses. Typically, customers use these spaces to store a wide range of items, from furniture to documents. Notably, this business provides relatively stable revenue, as customers often rent storage space for extended periods. Moreover, the relatively low competition in some regions creates favorable conditions for entering the market. On top of that, operational costs for self-storage facilities are also fairly low, especially when the facility is fully automated.

There are generally two types of self-storage facilities:

1. Indoor Self-Storage

These storage spaces are located inside buildings, typically large warehouses. With thoughtful layouts (often modular designs), they allow for maximum utilization of the available space within the structure. Items stored in these units are protected from the elements and often benefit from advanced security measures.

2. Outdoor Self-Storage

These are storage containers located on fenced lots, with direct vehicle access – perfect for those who value convenience and easy access. Outdoor self-storage is more flexible in terms of location. It’s ideal for city outskirts or suburban areas, offering quick access and lower maintenance costs.

Self Storage Costs and Profitability: Is It a Worthwhile Investment?

The question always arises: “How much does a self-storage facility cost?” The costs depend on many factors – the type of facility, location, project scale, equipment, technology, and even advertising. The initial investment can be substantial, but a well-planned business quickly pays off. The average profitability of such an enterprise can reach up to several percent annually, and in some cases, even higher.

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The self-storage industry is experiencing an annual global growth rate of around 6-8%. In Poland, the number of investments in these facilities is also on the rise, as is consumer awareness of this sector.

Tip: Be sure to set aside a financial reserve for the first few months of operation. The initial period may require additional funding until your customer base grows.

How to Start a Self-Storage Business: First Steps for Investors

Building a self-storage facility is a business idea that requires careful planning. First of all, choosing the right location, conducting market analysis, and understanding the needs of potential clients are just the beginning. In fact, in Poland, where storage space is becoming increasingly scarce, this type of business can be a bullseye – however, only if you know where to start.

1. Design and Maintenance of Self-Storage Facilities

The design and maintenance of self-storage facilities are critical factors for smooth operation and tenant satisfaction. Specifically, professional design ensures optimal space utilization, user ergonomics, and the integration of modern technologies such as access control systems and online rentals. Well-designed facilities, often modular, allow for flexible adaptation to changing market needs. Meanwhile, regular maintenance – including infrastructure upkeep, technical monitoring, and prompt resolution of issues – is essential for ensuring the safety and reliability of your facility. As a result, these aspects directly influence tenant satisfaction and the owner’s reputation.

2. A Good Plan and Formalities – Stay on Track!

To begin with, don’t dive into the unknown. To open a self-storage facility, you must create a business plan. Indeed, this document is crucial for securing funding or attracting investors. Furthermore, a good plan serves as your guide, helping you clearly define and achieve your goals.

Start with a simple calculation:

Number of storage units you can initially build × expected rental income per unit

Nevertheless, keep in mind that high occupancy rates are not achieved immediately, so factor in a gradual ramp-up.

3. Self-Storage and Building Permits

Moreover, it’s crucial to ensure that your facility complies with all legal regulations. The requirements vary depending on the type of facility – indoor or outdoor. At a minimum, the basics include obtaining a building permit and adhering to current construction and fire safety standards. Additionally, the plot where the facility will be built must have the appropriate zoning designation. Therefore, begin by checking the local land use plan.

Self-storage facility owners often highlight additional factors required to obtain permits, such as:

• Proper distance from neighboring buildings,
• Access to parking spaces,
• Materials used in construction.

What’s more, regulations are not uniform across the country – different regions in Poland may have varying requirements.

Important: Self-storage facilities are classified as industrial buildings (Category XVIII) under Polish Construction Law. This classification affects technical requirements, the permitting process, and taxation.

4. Best Locations for Self-Storage Facilities: How to Choose Wisely

As every self-storage owner says: “Location, location, location.” The ideal spot for a self-storage facility is near large cities or residential neighborhoods with limited access to storage units. Locations close to office buildings and logistics centers are also popular. Rapidly growing cities like Warsaw, Kraków, Wrocław, or Katowice have significant potential in this sector. However, this doesn’t mean smaller towns are out of the game.

Conduct a local market analysis and ask yourself these questions:

• Are there already any self-storage facilities nearby?
• What does the urban layout look like? For instance, if the area consists mainly of single-family homes, self-storage may not be the best fit.
• What is the state of the local housing market? Is there access to storage units? What about rental properties – do they rent well, and what’s the demand and turnover like?
• Are garages for rent available in the area? What are their prices?
• What is the local business environment? Check if there are small businesses nearby – they often look for mini-storage spaces for their operations.
• What is the local demographic trend? Is the city growing, or does it experience a consistent population decline?

Tip: Choosing a location can help determine the type of facility you should build. Outdoor storage often works better on city outskirts, while indoor facilities are more suitable for central locations.

5. Equipment and Technology – Comfort for the Customer

In modern self-storage facilities, customers expect more than just secure storage units; they also look for technological solutions that make renting and accessing their belongings easier. That’s why it’s worth investing in automatic locking systems, tenant apps, or online rental services. These tools will save you time by reducing paperwork and streamlining operations. Opt for proven solutions, such as the SavvyLockers system, which provides comprehensive support for managing your facility. With such technology, you can maintain control over your business from anywhere in the world.

Fun fact: In Norway, where the self-storage market is highly developed, 97% of facilities are managed remotely (1).

Consider offering your tenants additional conveniences such as:

• Storage crates,
• Shelving,
• Manual pallet jacks (“paleciaki”).

For indoor facilities, you might also consider specialized climate-controlled zones with consistent temperature and humidity levels. This type of feature will attract customers who need specific conditions for storing their belongings.

6. Self-Storage Marketing Strategies: How to Attract More Customers

Have you opened your first self-storage facility? Congratulations! Now it’s time to focus on visibility. Invest in SEO to ensure your business is easily found online. Create content with keywords like “Self storage (Your City)”. A well-optimized website is essential, but don’t overlook other marketing channels such as online ad campaigns, articles in local newspapers, and even billboards.

Don’t forget the benefits of:

• Loyalty programs for regular customers – consumers love promotions.
• Collaborations with local businesses – they may need space for materials or documents.

Effective marketing strategies can help your self-storage facility stand out and attract a steady flow of customers.

7. Self-Storage Franchise Opportunities

A franchise is an option for those looking to enter the market with less risk and a proven business model. A franchisor provides not only a recognizable brand but also support in equipping storage facilities, management systems, and marketing efforts.

However, deciding to join a franchise in the self-storage sector requires careful analysis. While franchising offers access to a tested business model and operational support, it may come with limited decision-making flexibility and the need to pay licensing and ongoing fees. It’s essential to thoroughly evaluate your business goals, resources, and preferences before choosing the right form of operation in the self-storage industry.

8. Learn from the Best!

Take a look at case studies from Poland and abroad to understand which practices and strategies can lead to success. You can find several examples here: Case Studies.

Or, if you’re in Poland, visit Octowa Self Storage in action!

Is Self Storage a Good Business? Final Thoughts for Investors

Starting a self-storage business is an idea that combines stability with growing market demand. Remember to focus on key aspects: location, legal requirements, security, technology, and marketing strategy. With the right approach and careful planning, a self-storage facility can become a highly successful venture.

Is it time to plan your own self-storage business? The decision is yours – the market is waiting for new investors!

Sources: https://www.fedessa.org

Want to Learn More About the Self-Storage Business?

Get in touch with us! If this topic caught your interest, it’s just the beginning! We have years of experience in the self-storage industry and operate our own self-storage facility. We’re happy to share our expertise, answer your questions, and guide you on how to start your own business. Call us, write to us, or leave a message – together, we’ll create a plan to help you achieve success!