What are the most common mistakes when buying a first self-storage facility?

Short answer: From his own experience, Mark lists five: buying a facility with no visibility, buying in a weak or overbuilt trade area, skipping a quality feasibility report, not understanding the competition, and allowing tenant payment plans. Higher interest rates and construction costs make each of them more expensive today.

The five mistakes #

1. No visibility. Storage behaves like retail; people need to see you.
2. A weak trade area. Look for population growth, healthy income and supply that isn’t outrunning demand.
3. No good feasibility report. A desktop study usually isn’t enough.
4. Not understanding the competition. Know their live rates, discounts and marketing before you set your projections.
5. Payment plans. Mark’s number one operating rule is never to let a tenant who owes rent pay a little at a time to catch up.

Each is covered in more detail in the related answers. Mark’s point is that he made every one of these himself, and new owners can shorten their learning curve by avoiding them.

Related answers #

• Why does visibility matter so much for a self-storage facility?
• What makes a good self-storage trade area?
• Do you need a feasibility report and competitor analysis before buying or building?

Source: Mark’s post Five Beginner Mistakes to Avoid When Buying a Self-Storage Facility