How to Rent A Container or Own One: Storage Facility Investment?

Business

A lot of investment managers and advisers agree that putting your hard-earned money in a real estate investment is considered one of the best decisions you can make in your life. But some of these enthusiasms were tainted after the eight trillion-dollar housing bubble that happened in the United States that leads to both the Great Depression of 1930 and the recession in 2008.

 

A lot of rental real enter owners lost their money on housing investments or ended up with bad properties. On the other hand, some intelligent and sharp-witted investors snapped up real estate properties during these periods for almost pennies for a dollar and made small fortunes flipping, fixing up and holding properties for long-term and future gains.

 

Today, we are going to take a closer look at different kinds of real estate investments that you are now familiar with, or not that popular among first-time investors. This method of investing in real estate has a higher potential Return on Investment and lower startup cost compared to rental houses. We are referring to facilities that utilize shipping cargo containers

 

To find out more about shipping container sale or rentals, make sure to check forum sites, social media posts or competitor websites for more information.

 

Shipping containers versus single-family houses

 

A regular single-family house price in today’s market is around $190,000 in the United States, with an average housing rent of more or less $1,000 per month. If you own five of these houses, they will provide a six percent capitalization rate (around $60,000 to $945,000 on average).

 

Compare that amount to a shipping cargo storage facility that has at least 50 units: the land price of $250,000 plus container price of $150,000. At an average rental rate of a hundred dollars per month, for 50 units. That’s an easy $5,000 every month in rentals alone. It translates to a two and a half times larger capitalization rate of around 15% or $60,000 to $400,000.

 

Shipping cargo vans versus traditional storage facilities that are made from steel and concrete

 

Shipping cargo units are usually great for storing essential items or equipment for a lot of reasons that include:

 

The cost of building the traditional kind of storage facilities is a lot higher compared to container vans.

Cargo vans are very strong, waterproof and very secured.

They have a strong and thick metal walls. Not only that, but they can also quickly secure heavy and bulky items or machines.

 

Not like the traditional storage facilities, cargo vans are dust-proof with a very tight seal around its doors to prevent pests and bugs from entering and damaging the items stored inside.

They are tightly secured, with locks on the door handles and a unique locking mechanism box for added security.

 

To know more about this business’ profit margin, you can visit https://bizfluent.com/info-10073444-profit-margin-storage-facility.html for more information.

 

The doors of the container unit can fully open, making sure that larger items can quickly and safely be stored. Even a full-sized vehicle or trailer can be stored in these container vans.

Overall, these types of storage are a lot cheaper, more beautiful and arguably a better way to start your storage business.

 

Added requirements for your storage facility

 

These kinds of facilities need to have one or more employees, internet access and most importantly, a stable power supply. It also needs to have security cameras that can stream video feeds on your websites, in real-time. It also needs to have keycard access to the security gate. The use of technology can partially overcome any problems.

 

If you are planning to use key cards for entry and exit, or apply a Redbox type of automated kiosk for leasing and your website has a renting option, it can help eliminate a lot of employees’ work, time and energy. Not only that, it is more cost-effective compared to traditional storage units.

 

Marketing for clients

 

Depending on the customer’s location, it is possible that a big sign can be built from these cargo units placed next to a bustling highway, and it might be enough to attract a lot of customers. If your location is not on the traffic hot zone, or a simple sign is not enough, a rental website can help you market your product or services. They take a percentage of the initial rent and help deliver clients straight to your front door.

 

Other alternatives include Google Ads, Yellow Page advertisement, Social Media platforms like Facebook, Twitter or Instagram, as well as your company website. Whatever types of options you plan to use, it should not be that difficult to get customers and have a 100% occupancy rate with proper plans and a perfect location.

 

Choose the location of your business carefully

Location is crucial, so as to zoning. If you rent or purchase a property and do not do your due diligence and research everything about this kind of business, you found out later that the local municipality, city or county government will not allow business owners to operate a storage facility in their jurisdiction.

 

Now, that is very unfortunate. Issues like this can be easily avoided by visiting the municipality, county or city assessor’s website where you will find the zoning on the parcel, and it is permitted the use or uses. Once you know the area’s zoning designation of your package, it is very important to call the zoning assessor or board’s office and schedule a meeting. You need to confirm to them that your self-storage business that is built from cargo vans aligns with their current zoning and that you will have no problems operating it in their jurisdiction.

 

Want to know how to verify a zoning designation of your property? Click here to find out more.

 

Final thoughts

 

If this article inspired you to start a storage facility business using a shipping container, good for you and you are welcome. Finding the right land and assessing your competitors are the two most essential components of this business.

 

Getting the containers from a reputable company with or without financing is considered the easy part. The hard part is looking for loyal customers and making them satisfied with your product or services. At the end of the day, you are providing a business opportunity for people who want to invest in this kind of business. There is no harm in taking the extra mile and research everything about this industry.

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