All Forum Posts by: RK KLIEBENSTEIN

Hello fellow professionals at BiggerPockets! Are there any of you interested or investing now in self-storage? I would like to get to know more about you and promote self-storage at BiggerPockets. Do you have any hero or war stories about self-storage investing? Do you own PS or EXS?
RK

Self-storage is a little tricky. In the past, it was such a great business, that it required very little attention. True, compared to residential real estate, there are no leaky commodes or carpets to replace, but a 42000 ft sq store (note I used the word store, as this is becoming a retail play if done right) will have 370 or so spaces (the right unit mix is critical). That means you are trying to keep 370 spaces full (I think of them as plates spinning in the air). The typical self-storage customer thinks they are only going to rent for 60 days. You have to keep the phone ringing and it is possible, in a well managed facility, that the rrental ates are adjustes EVERY DAY. Fortunately we have software for that. I do not know where you are located, but if you were to visit a Westy's near the City or a similar high volume, high profile, high profit self-storage store, you would see lots of activity. I have seen thousands of facilities across the US with an under educated manager who watches Jerry Springer and reads People magazine all day and says "there is nothing to do". It is a self-fulfilling prophecy, and it is all at the owners expense. I could go on, but looking at industry trade magazines will lead you to understand how storage, done correctly, is not a passive investment. That is one of the biggest mistakes most new owners make, is thinking this was a 'no brainer' no management business.
The feasibility study is your first major step. Please let me know if I can help.
RK

That is the name of my book. I am the leading consultant to the self-storage industry, providing feasibility studies, financing, due diligence and general consulting. If you would like to review your project, you can call me.

This is great business, but it is not for everyone. It is NOT a passive real estate investment. For those who have the right site and the right business plan, it is a FANTASTIC industry. Thanks for thinking about self-storage.
RK