The self storage industry started long ago with sheds in a backyard. Its meager roots began as “mini-warehouses” as ancillary income for otherwise unusable land. Over the past five years, the industry has grown up and come into its own as a recognized commercial real estate investment. Self storage has grabbed the attention of private equity companies and real estate investors. Cap rates have dropped like a rock and development has increased to a frenzy. With so many people eager to invest in self storage, we must consider if self storage is a good investment.
Here are some reasons to invest in self storage:
Self storage is inherently more stable than other commercial real estate classes. Storage properties can range from 200 - 2,000 units which spreads the vacancy risk compared to retail with 5-10 units. In a business with five units providing revenue, losing 1 unit will result in a 1/5th drop in income. In a 500 unit...
If you are like most self storage investors, you got into the self storage industry to create passive wealth, not deal with the day to day management of a business. Self storage in unique in the commercial real estate industry as it is both an investment AND an operating business.
The business demands time and attention to give a strong return on investment. Whether you want to free your time to chase more deals or relax on a beach, we suggest hiring a self storage management company (like us!)
If you are like most of our customers, you have some questions before you are ready to give a management company the keys to the kingdom. We get it. Here are some things to think through before you decide on hiring a self storage management company.
There are basically three options in regards to self-storage management companies: REIT, Private Storage Management Company, or Boutique Self Storage...
Crime prevention and security measures are a hot topic in the self storage industry.
Thanks to popular self storage TV shows, everyone believes that every single storage unit holds outrageous treasures like first edition comic books or gold bars.
That is also the perception of people who might want to break into your facility. It is up to you to make sure your security is up to par. Customers choose their self storage unit based on security, location, and staff. Keeping your property safe and secure is crucial to running a successful self storage business.
Having had the opportunity to be involved in law enforcement before self storage, Rick Beal will share some thoughts and theories with you.
When he was a teenager growing up in a small town, there was an abandoned high school. Since there wasn’t much to do on the weekends, Rick and his friends would sneak in late at night to wreak the usual teenage havoc. This high school had been empty for years and had...
Atomic Storage Group was co-founded by Magen Smith, Matthew Van Horn and Rick Beal. All three started in the self storage industry as managers. All three sat behind the desk, answered the phone, took payments, and completed rentals. All three wanted more.
Magen, Matthew, and Rick all rose through the ranks, put in the hard work, and didn't settle until they each acquired partner status in their self storage property (individually).
Atomic Storage Group was founded as a third-party management company by folks that have been there and done that. If you own (or dream to own) a storage property, we will run it like our own. Literally. We run our own, and they are awesome. If you are a manager and want to rise through the ranks, we get it. We've been there. We want to see you grow and watch you succeed.
The following is written by Rick Beal, our master of Operations and Staff Development. He's one of the most incredible people I've had the pleasure to...
Many years ago, Rick Beal sat down in an office for his yearly review. His manager at the time then proceeded to give him the worst personal review he has ever received in my life. Below Rick tells his story and provides self storage owners tips on how to conduct proper employee evaluations.
I felt like a complete and utter failure, and I was devastated. After the shock of my review was over, I began to read it and discovered how completely inaccurate it was. The more disconcerting matter was the fact that the simple things that I received poor marks for had never been brought to my attention until the time of the review. I asked my manager, “This stuff was no brainer stuff. Why didn’t you just tell me?"
To which she had no real response.
Of course, this affected my pay for the year and ultimately, my direction in the company. Luckily I had a great mentor to help me stay the course, and get me where I am today.
To me, this example epitomizes what is wrong with yearly...