Unlike other investment opportunities, investing in mini storage facilities is highly profitable with limited financial risk. Other than the initial investment used to purchase the facility, there is very little associated or hidden investment cost. Unlike other business ventures, a mini storage facility is almost completely hands off. Work staff is minimal. Many mini storage facilities boast twenty four hour on premises supervision, others simply employ one office manager whose responsibility it is to rent out and manage the individual storage units. Also, when owning a mini storage facility, there very few recurring month to month costs. Utility fees are generally low and there is generally no or little upkeep required of the property. HULT PRIVATE
While other businesses invest huge sums of money is superficial and cosmetic enhancements to lure people through their doors, mini storage facilities simply need to offer basic amenities to retain a strong clientele. Investment in advertisements is also entirely up the individual investor. However, the mini storage market is generally a market that does not need the help of flashy or expensive ads to draw in clientele. In today’s, buy and consume market place, everybody needs a little extra space to store those holiday dishes, winter clothes, or old furniture. Thus, a steady stream of customers is almost guaranteed. And because, a mini storage facility is a need based market (that is clients need to store items regardless of the cost involved) money and energy does not need to be wasted on trying to convince customers through your doors with advertisements.
When investing in mini storage facilities, profits are earned almost immediately. Due to the low recurring costs associated with upkeep, maintenance, and advertising already discussed, once an investor has recouped his or her initial investment, a very large portion of earnings is profit. Current profit margins will vary depending on the number of individual units in the storage facility, location of the storage facility, and the overall appearance of the storage facility. However, rest assured that the profit margin will be substantial when compared with other investment opportunities.
The largest investment associated with investing in mini storage facilities, other than purchasing the actual buildings and land, is the money associated with security. More than advertising, a sense of security oftentimes will bring in those clients. A person is not going to store their items unless they have a sense that their items are safe and secure. Due to improvements in technology, even these costs are coming down. Gone are the days of security guards and guard dogs. It is now possible, for a minimum investment, to install a security system with dozens of cameras with twenty four hour recording and playback.
With the current economic downturn and constant negative news reports about consumer confidence and credit crunches, it can be hard to think about financial investments. However, the smart businessman looks at the current market and sees deflated prices and lowered investment costs. There has never been a better time to invest money in the marketplace as long as you are smart, financially responsible, and choose the proper business. And, due to low recurring costs, large profit margins, and easy of management, that proper market is the mini storage facility market.