Guest Post: 5 ITEMS YOU MUST LOOK AT WHEN BUYING AN EXISTING STORAGE FACILITY By Kevin Rollings
1) CONDITION: The condition of the facility is the key to the future of this facility. What should you look at? Is it concrete, blacktop or gravel? Cracks that need repaired or sealing, or does it need a layer of gravel added? What condition are the doors, latches and roofs in? Do the doors operate smoothly, are the latches rusting out and hard to move? What type of roof? Was it a screw down, seamed? When was it last inspected?
2) COMPETITION Where is your competition? Down the street or on the other side of town? What is the competition’s unit mix, pricing and specials? What type of units do they have? Temperature controlled, outdoor? What kind of location and traffic flow do they have? Signage and overall appearance.
3) LOCATION Location is important, but with the advent of the internet there are many more ways to reach potential tenants. Is your site visible to drive by traffic? Is the facility easily accessible? Do you have a website and where does it rank? Do you have effective signage?
4) FUTURE GROWTH What can be done to grow the facility? Improve cash flow or increase profitability? Can you expand? Are the expenses in check? What is the population in your area? Are there apartments, subdivisions with strict HOA’s?
5)YOUR DUE DILIGENCE Are you informed enough to move forward to buy this facility. Your due diligence will answer that. Have you received the last three years P & L statements? Did you compare to the tax returns and have differences explained? Have you did a facility audit? Does the rent roll match the lock count when you walk the facility? These are just a few of the questions to ask yourself as you start down the path to facility ownership. Your future success depends on these steps and questions. The initial work you do on the purchase will ultimately help decide your future success.
About Kevin Rollings & Self-Storage Facility Management
Kevin R. Rollings is a Teacher, an Owner and an Operations Manager for Self-Storage Facilities! Kevin has over 25 years rental experience at various levels of management and ownership in the rental niche.
Kevin was the regional supervisor for Scott Meyers, the past owner of Alcatraz Storage’s in the Indianapolis Greater Areas. Kevin was often a speaker at Scott Meyer’s Self Storage Academy as the key speaker for Management 101 and for Self Storage Auctions. His wisdom and excitement for the industry lead Kevin to purchase Alcatraz Storage in Brownsburg, Indiana, moving him from a once manager to a current owner!