How Much Does a Storage Unit Cash Flow?

Profits in Storage Unit Business

• Storage units have proven to be a profitable business venture, thanks to various revenue streams. From rental fees and additional services to auctioning unpaid units and offering insurance coverage, storage facilities have found innovative ways to generate income. As demand for storage continues to rise, these facilities will undoubtedly thrive.

Multi-Faceted Income Streams

• Another way to make a self-storage unit profitable is by incorporating multiple income streams, such as moving rental trucks, offering packing supplies, and partnering with local movers to transport customers’ belongings. Self-storage facilities have low operating costs, which is another reason why it is profitable.

Factors Impacting Profitability

• Location impacts profitability. High-traffic storage facilities with easy access tend to be more profitable than rural locations with little traffic. Larger cities offer higher prices since more residents need their services.

Passive Income and Returns

• Renting storage units means monthly rental checks from customers. Typically storage makes a profit at 60% to 70% occupancy. Industry average occupancy stands near 90%. Many owners hire managers.

Key Financial Insights

• The average facility sells for just under $40 per square foot, earning $4 per square foot worth about $1.6 million. Self storage brings over $39 billion in revenue yearly.