What are the steps to buying a self-storage facility?

A self-storage purchase is part business and part property, and the steps reflect both. The order below is how most buyers move, though the pace varies. Where you want a list of what to verify at each stage, use the self-storage buyer checklist. This page is about the sequence, so you know what comes next and who you will need beside you.

Decide what you are looking for

Start with the kind of facility you can run: indoor or drive-up, climate-controlled or not, one site or several, and how hands-on you want to be. Decide how far from home you will look. Then speak to a lender early, because the lender’s view of the property and of you shapes what you can pursue. Write down your limits before you see any listing.

Find, screen and make an offer

Use listings, brokers and direct approaches to owners. Ask for a summary and recent statements, and sign a confidentiality agreement when the seller asks. When you decide to move, an offer or letter of intent sets out what you are buying, the conditions, and the time allowed to check everything. Have your lawyer read it before you sign.

Check the books, the site and the paperwork

Compare the rent roll with the bank deposits, look at every unit, and inspect the buildings, doors, gates, cameras and paving. Ask for the lease form tenants sign, insurance records and the software’s reports. Your lawyer will check title and the land, your accountant the financial records, and an environmental review may be wise. See also what environmental checks you may need.

Finance, close and take over

A lender may ask for its own appraisal and a plan for how you will run the place. At closing, you receive the keys and codes. Plan the handover: tenant notices, the transfer of automatic payments, the access system, the website and phone line, and a month or so of the seller’s help if they will give it.