Inside Self-Storage

DEC 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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A budget helps your business by: Site-Maintenance Costs You also need to think about your site's overall curb appeal and maintenance needs. To compete with new self-storage supply, existing properties must have great aesthetics and be in good working order. Items such as landscaping, driveways and parking lots, building exteriors, gates, hallways, unit doors, security components, HVAC, and the rental office all need to be reviewed for the new year. What will you need to spend to whip them into shape? Property Taxes Finally, an expense that seems to increase without end is property taxes. The word is out, and cities have caught on to the success of self-storage. Due to the robust economy, property valuations continue to increase, and municipalities are adjusting millage rates. Any benefits our industry received regarding property valuations during the Great Recession are over. Facility operators need to plan for annual increases. If you believe your facility has received an aggressive property valuation, you have the option to challenge the municipality. The overall increase in taxes is something all owners in our industry will have to address annually. A Head Start These five areas will likely be the most variable budget line items as operators compete with new self-storage supply. Other expenses such as office supplies, utilities and insurance will likely increase as usual, but not as dramatically. As you build your budget for next year, remember that you'll possibly be competing with new facilities in your market. There'll be more street-rate fluctuations, higher interest rates and an economy that may begin to slow. Preparing now will give your business a head start on a successful 2019. Matthew Van Horn is a co-founder of 3 Mile Domination Self Storage Services, a full-service management company specializing in self-storage management, feasibility studies, marketing and consulting within the self-storage industry. He's also the co-author of "Self Storage Domination." To schedule a free 60-minute self-storage strategy session, visit www.3miledomination.com. Budget Benefits Source: Fundera.com, "How to Create a Business Budget: A 6-Step Guide to Running Your Finances" Making it more efficient Pointing out funds left over and ready for reinvestment Predicting slow months and keeping you out of debt Estimating what it will take to become profitable Looking into the future Helping you keep control 6 December 2018 I ISS 15

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