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Beyond The Hype - The Truth About Today's Rapid City Self Storage Industry

By Barbara Nelson


Conflicting descriptions of no-risk investment and reports of a collapsing self-storage market have potential self-storage business owners scratching their heads. Can Rapid City Self Storage units stay on top of the undulating economy? The answer is: Yes, with few exceptions.

Home Owners-Storing idle takes a lot of space. You can free up the space at your home if you rent out a unit and shift your items to it. Or you can plan to rent space at a storage unit if you have things that you can not store at your home. If you use self storage, you can utilize space fully at your home and yet retain your belongings. One common benefit for both business and home owners of using self storage is reduction of clutter and create free space.

Myth 1: There is a personal storing facility on every corner. I can't make money with all of that competition. It's true, personal storing is a business that has grown from out-of-sight garages in industrial areas to modern multi-use facilities. A billion dollar industry has sprung up in the past twenty years all geared toward development and building.

Many of us are fans of things like vintage cars, ski boats etc. If you keep them at home they occupy lot of space. This will create a big problem if you do not have enough room to keep those items. Keeping these items in a personal storing unit will not only free up space but will also protect them from weather conditions. So is the case with items like paintings, collectibles, important documents etc. They will be saved from mold and mildew at storing units.

Location, Location, Location- Choosing a site is one of the most difficult decisions to make. Usually, an ideal site is one that is located on a major travel corridor and is highly visible. Still, cost is an important factor. If you pay too much for a prime building site, the pay off might eat at profit margins for years to come. It is crucial that this decision be researched thoroughly. Hiring an experienced consultant is advised.

Myth 2: I either need to build a new facility or buy a newer one to make money. Most people think that personal storage buildings must be cheap to build since they are just metal buildings with doors. Yes, they are cheaper to build than most other commercial buildings, but there is much more to developing and building than meets the eye. In most cases, it's a laborious process that takes months, if not years, to complete. Then all you have is an empty facility with a large debt service. It may take several years to break even and this is definitely not a fast track to success.

The smart investors are buying existing, older facilities that are poorly operated and need minor repairs. These properties are not on the radar screen of the big companies and can be picked up at great prices. With these facilities, you often start with a positive cash flow and once the repairs have been made and you operate it professionally, the money really starts rolling in.

In some businesses, business owners may need to keep certain documents for a certain period as per the law. Keeping those documents would consume lots of office space. These documents can be stored in personal storing as they are not accessed frequently. Similarly unused office equipment that you may not want to dispose of immediately can be kept in self storage.




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