If you’re planning to sell your self storage property, it’s a good idea to get a head start on increasing the value of your property with renovations that will maximize your sales proceeds.
When you think about renovations, you undoubtedly associate these projects with major expenses. Don’t be overly concerned. Yes, some remodels will require capital expenditures, but there are a number of small upgrades that can be done for minimal expense. Refreshing the facade, updating landscaping, or repairing the roof can make a big difference to potential buyers.
As an industry leader in third-party management, Pinnacle Storage Managers will help you understand how to get the most value from your property at the time of sale.
Increase the Value of Your Self Storage Property With the Right Renovations
Consider Expansion
If you have extra space, add storage units. Additional units, especially climate-controlled units, are a notable attraction. Nevertheless, there are factors to consider before you take on a massive expansion project.
Supply: Is there considerable competition in your market, or is your market highly saturated? If so, you may want to rethink an expansion strategy.
Demand: Does your facility have consistently high occupancy rates or are you slow in renting units. If your facility is at least 80% occupied with top rates, expansion could satisfy your demand.
Demographic Changes: Expansion can be beneficial if your market has had an influx of people. If the population is decreasing in your area, additional units may have a negative impact on your bottom line.
Construction Costs: Will the cost of improvements exceed the benefit of increased value?
Timeline: Will a large undertaking work within your timeframe? Missed deadlines can cause huge headaches.
Optimize Space With A Creative Unit Mix
Think about how you can optimize your space to increase occupancy in your market. If you have too many unoccupied large units, convert them into smaller units. The same goes for too many unfilled small units. You can easily remove partitions and create large units to increase occupancy and generate income.
Add Parking as an Inexpensive Option
If a large expansion is not financially viable but your lot is paved and you have the room, extra outdoor parking spaces may be the better option. Your sole cost would be painting the lines. If you have the available space, but your lot isn’t paved, using gravel is another inexpensive option.
Maintain Curb Appeal
You only get one chance to make a first impression. Keep your property well-maintained and appealing to prospective buyers. The office should be clean, the landscaping manicured, and the doors and windows sparkling. Have the right mix of security features, including bright lighting, electronic gates, and video surveillance all in good condition. Cracked asphalt, peeling paint, dirty hallways, broken doors, and overgrown shrubbery will send buyers to another property.
Use an Effective Marketing Campaign to Increase Occupancy
Your occupancy is important to buyers. If it’s not where you want it to be, increasing your web presence is an important step toward raising your occupancy. A custom-tailored digital marketing campaign will increase your online presence by improving your search engine optimization (SEO). An effective marketing plan will promote your business on search engines, social media platforms, and third-party websites. Positive reviews that are incorporated into your site will boost your credibility as well as your occupancy. An online rental platform will give potential customers the convenience of being able to rent a unit from the comfort of their home, bring you more tenants, and more revenue.
Use Tiered Pricing to Entice Customers
Tiered pricing is a strategy to incentivize your customers. For example, if a manager sees that a prospect is focused on convenience, higher prices can be charged for the storage units in the front of the facility or first-floor units in a multistory building. On the other hand, a sale can be saved by offering a less expensive unit on an upper floor or at the back of the property.
Be Consistent to Reduce Delinquencies
Steady cash flows add value to your property. A high delinquency rate is unattractive to buyers and will decrease cash flow. To avoid this, be consistent with collection calls, and be careful when initiating the lien process. Keep detailed records and be familiar with your state lien laws. If not handled correctly, collection problems can turn into legal problems.
Final Thoughts
Large renovations and as well as small upgrades can increase the value of your self storage property. Consistent hard work, regular maintenance, and diligent record keeping will pay off with added value to your facility and more money in your pocket at the time of sale.