Do Your Homework

Whether the property is already owned, leased or is a possible acquisition, a full appraisal of the property and the Business Plan can be undertaken.

The property is one of the key elements of any self storage business, it location, size, accessibility, condition and many other factors will affect the business’s potential success. Comprehensively understanding this element of any self storage venture at the beginning will assist in optimising returns and reducing exposure.

If the property is leasehold, what is the optimum length of lease to sign? If you are looking to convert a property what are the pitfalls? Will the floors take the loads? Where should the reception be? What are the adjoin uses? Is there a planning issue?

There are numerous questions that will not only have an effect on the operational performance of the business but also the capital value and saleability of the business.

All these question need an answer before committing to a project. Doing this comprehensive homework up front will help to avoid problems and exposure further down the road. Acquiring, developing and converting property for self storage will involve significant expenditure and therefore it is essential to carry out comprehensive due diligence and appraisal before getting to the point of no return.

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