I Wish I Knew This When I Built My First Self-Storage. I Would Have $500,000 Extra in My Wallet! – by Marc Goodin, President of Storage Authority Franchise Civil Engineer by Trade 30+ years

Imagine $700 cash showing up in your wallet every Sunday morning. That is what many self-storage owners are giving up each week because they are not taking ancillary sales seriously.

Self-storage ancillary income makes a huge difference in your profits now and when you sell.

Let’s run through the numbers for 500 units rented with a turnover rate of 20 units a month

$29 admin fee x 20 units rented a month = $580/month
Required Tenant Insurance: 500 units rented x 80% penetration x $10 profit/month = $4,000/month
$29 late fee assuming a good collection system including multiple text notices
$29×10 late customers/month = $290/month
Disk lock sales: 20 units rented a month x 70% penetration $14.99/lock = $300/month
Box sales: 20 sales a month x $20/sale = $400/month
The Grand Total = 66,840/year =$5,570 a month = $1,400 a week

Even if you cut this extra profit in half because you are doing some of these things you would still be making an extra $33,000 a year = $700 extra cash deposited in your wallet every Sunday morning. It is time to be an expert!

At a 5-cap rate, this extra profit would mean an additional =$660,000 in profits when you sold ($33,000/0.05)

If you have a detailed written game plan on how to capture all this extra income don’t forget to include it in your proforma for your bank loan. This along with other factors can make the difference in getting the loan or not.

Do you want to know if you qualify for a Storage Authority Franchise?

If you fill out the application (apply icon on our website) you will have your answer in 2-3 days. Or we can have a 10-minute call today and not only will you know if you qualify, you will learn the basics of what is involved in developing and operating a self-storage business. Give Garrett from our team a call or let him know a couple of good times to call you.

Please email or call Garrett Byrd from our team: Garrett@storageauthority.com or 941-928-1354

If you would like to learn more and start your journey to self-storage ownership click the link here:

http://www.storageauthorityfranchise.com/opportunity2

Marc Goodin is the President of Storage Authority Franchising (www.StorageAuthorityFranchise.com). He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 30 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His best-selling self-storage books are available on Amazon.