What does it cost to own and run a self-storage facility?

Few staff, no stock and no kitchen can make storage look cheap to run. The costs are real, though, and several of them arrive in lumps rather than every month. A buyer does best by asking the seller to show each cost line in the records, and then asking what is missing. This page lists the lines to look for.

People and day-to-day running

Ask who opens the office, answers the phone, shows units and chases late accounts. If the owner does it all unpaid, the statements will understate the cost of a manager, and you will need to price that work yourself. If the site runs with an on-site manager or a call centre, ask what that costs and what the arrangement says about notice and ownership of the tenant list.

Buildings, doors and access systems

Doors, locks, gates, keypads, cameras and lighting wear out and fail at awkward times. Ask the age of each, what has been replaced lately, and what the seller expects to need next. Roofs and paving are the larger jobs. Ask for repair invoices over the last few years, and walk the site with someone who knows buildings. Your lender may want a condition report too.

Systems, insurance and the rest

Management software, payment processing, the website and online advertising all carry fees. So do insurance for the buildings and liability, utilities, property taxes and any ground rent. Ask for the actual invoices, not summaries. Then look for rent that tenants owe and do not pay, and what the facility does about it. That loss belongs in your picture of the costs.

Questions to put to the seller

• Which costs does the owner’s own labour cover, and who does it after closing?
• What repairs or replacements are due soon?
• Which fees are tied to contracts that could change when ownership does?
• How much rent goes unpaid, and how is it handled?