Start A Storage Rental Business - Business Ideas

Pat Walls

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Updated: September 15th, 2022

Start A Storage Rental Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Are you planning to start a passive income business? Storage unit business is an excellent choice for passive income.

Storage spaces offer a solution for people and businesses with too many things but lack enough space to store the items. Besides, the demand for storage space has increased and is expected to reach over $64 billion in the next few years.

Therefore, if you have some idle land, you can construct storage spaces for rental, ideal for industrial, commercial, and residential clients. If starting a storage business, remember location is a critical factor, and do market research to find out the market rates.

Starting a storage rental business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell storage rental, or selling storage rental online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$4.26B

starting costs

$18.9K

gross margin

43%

time to build

270 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

See all startup costs ➜

Successful Businesses

Business	URL	Rank
ExtraSpace	extraspace.com	33,227
Neighbor.com	neighbor.com	93,861
Self Storage Management Software	storageunitsoftware.com	116,076
SelfStorage.com	selfstorage.com	117,074
Safe Storage™: Self Storage, Storage Services in Bangalore	safestorage.in	345,879
SecurCare Self Storage	securcareselfstorage.com	429,477
Self Storage Management Software	selfstoragemanager.com	436,839
Conexwest: Conex Containers & Storage Boxes for Sale Near Me	conexwest.com	448,065
Public Storage Canada	publicstoragecanada.com	543,720
Cool Box Portable Storage	getacoolbox.com	612,059
West Coast Self-Storage	westcoastselfstorage.com	641,567

See all businesses ➜

Pros & Cons

Pros	Description
Rewarding work	Starting a storage rental business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections	You never know who you will meet as a storage rental business. This could be the start of an incredible business opportunity!
Daily physical activity	Storage Rental Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts	Working in the storage rental business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss!	With starting a storage rental business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community	One of the best parts of starting a storage rental business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your storage rental business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins	The gross margins for your storage rental business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover	In the storage rental business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes	As a storage rental business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Marketing Ideas

1

Direct Sales

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

See all marketing ideas ➜

Key Stats

Startup Costs

Successful Businesses

33,227

93,861

116,076

117,074

345,879

429,477

436,839

448,065

543,720

612,059

641,567

Pros & Cons

Marketing Ideas

Direct Sales

Word of mouth

Social Media Advertising