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You may have thought to yourself, “My facility needs an upgrade, but I’m not sure where to start.” No worries we’ve got you covered. Finding unique solutions to maximize the benefits of doing a self-storage renovation takes some thinking and planning out. You may be wondering how you’re going to fund your project or maybe unsure what unit mix is ideal for your facility. Take a look at these tips and helpful points to kick start your next self-storage renovation project.
Believe it or not, there’s a significant amount of savings available when it comes to self-storage renovations. Through cost segregation, you can write off discarded items such as interior and exterior doors, interior partitions, hallway facades, metal framework, parking lots, landscape, and more when these items are replaced. This faster depreciation means more cash back into your business. Renovations can also serve up some pretty big insurance discounts by providing a safer, more secure facility and eliminating potential hazards on your property.
When choosing the right unit mix for your renovation or conversion project, it’s important to know your market. If you’re in an area where wine is a big deal, consider adding climate-controlled wine storage to your unit mix, after all, just because you’re a wine enthusiasts doesn’t mean you’re equipped with your own wine cellar. Maybe you have more millennial tenants looking to store kayaks, bikes, or other adventurous toys and don’t need all the extra space. This is a great opportunity to add lockers and smaller units to the mix. Or, maybe you are sold out of units or have underutilized land. If this is the case, consider adding relocatable storage units and forget the headaches of pouring slabs or lengthy permitting so you can start renting units as soon as they’re onsite. And check this out… since relocatable storage units are classified as equipment, you’ll also benefit from the many great tax advantages!
It may seem like facility upgrades are only for older facilities in obvious need of repair; however, newer facilities are often just as much in need if they fall short in functionality or security. Maybe you are not getting the most out of your current unit mix and have certain sizes that just aren’t renting. This is where adding or removing walls can be an easy and cost effective solution for maximizing your per square foot rental rates. Maybe an upgraded security solution is in order to make your tenants feel safer and at ease knowing their belongings are secure. Cameras and adequate lighting can help greatly for this but you can also consider adding a smart entry system to maximize your security and get ahead of your competition.
