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You see them everywhere — storage units for rent in all shapes, sizes, and price ranges. You may have rented one when moving, traveling, or storing items that wouldn’t fit in your home. But have you ever considered whether owning a storage unit business is profitable?

Self-storage is an evergreen business, meaning it will always be in demand at any time of year. According to a recent industry report, the self-storage market is set to have a 7.5% compound annual growth rate from 2022 to 2028.

This massive growth rate is forecast to see the global industry balloon to a total market size worth nearly $90 billion by 2028. With such promising growth and potential profits, many investors are interested in learning just how profitable owning a storage unit business can be.

The annual income earned from owning storage units depends on several factors:

  • The size of the facility
  • The staff needed to operate it
  • The location 


These all play a role in how much money you can make. Generally speaking, larger facilities in high-traffic areas tend to make more money than smaller operations in less desirable locations.

The revenue and profit generated from a storage unit business can vary greatly, but owners can expect to make anywhere from tens of thousands to hundreds of thousands in annual profits. Additionally, the amount of money you can make depends on the rate you charge customers and how effectively you market your services.

With the overwhelming array of marketing avenues and tools available, knowing how and where to market your business can be difficult.

From Search Engine Optimization (SEO) and email campaigns to social media and Pay-Per-Click (PPC) ads, the possibilities are endless. PPC is one of the most cost-effective, fast ways to get your business visible online. However, developing the skills and expertise to effectively implement a successful PPC campaign is time-consuming and difficult.

This is why hundreds of business owners have turned to Adverank to manage their PPC marketing campaigns. With Adverank, business owners can put their time and focus back into running and growing their businesses, while our PPC experts and specialized software optimize their campaigns for maximum profits.

When it comes to marketing your business, Adverank does the hard work for you. 

Storage Unit Business for Sale

Instead of starting a storage unit business from scratch, many investors choose to search for existing storage unit buildings for sale. Some of the numerous benefits of purchasing an already existing storage unit business include:
  • Established customer base: Purchasing an existing business means you're also buying a customer base. This can save you considerable money and time when it comes to marketing and promoting your business.
  • Familiarity with operations: With an existing business, you won't have to worry about learning the ropes from the ground up. All administrative and operational duties should already be in place and ready for you to take over.
  • Existing revenue streams: Buying a pre-established business also gives you access to existing revenue streams. This means your profits can begin flowing in much sooner than if you were to start from scratch.
  • Potential for expansion: Purchasing an already existing business gives you the accelerated potential to expand and grow your operations much faster than when starting from nothing.
  • Ability to leverage existing relationships: When buying an already established business, you can potentially leverage the previous owner’s relationships with vendors and suppliers. This can lead to better prices and more streamlined operations.
  • Lower financing costs: Should you require external financing to purchase, an existing business may be cheaper to finance than a new one.
If you're considering purchasing a business, there may be some risks to keep in mind. These can include environmental or legal liabilities, debt from the previous owner, and various other liabilities left over from the previous management. It's paramount to take precautions and exercise due diligence with an experienced broker when searching for a storage unit business for sale. By taking these steps beforehand, you'll have peace of mind knowing your investment is sound.

Self Storage Business Models

Exploring the various business models for your storage unit facility can prove challenging. Factors such as area and customer demographics are significant factors to consider when making this vital decision.

Here are some of the most popular self-storage business models people investigate when considering how to start a storage container business:

  • Traditional Self Storage: This is the most common type of storage unit business, which involves renting units to customers who need a place to store their belongings. The revenue models for these businesses usually consist of charging customers monthly.
  • Mobile Self Storage: This model involves bringing the storage units directly to the customer’s home or office. The business then transports the units back to a secure storage facility for safekeeping.
  • Climate-Controlled Storage: This model applies to units where temperature-sensitive items such as art and electronics need to be stored in an environment with specific climate controls. These units usually command a premium price.
  • High-Security Storage: This model is reserved for customers who need to store items that require extra security. These units typically come with access control and surveillance systems.


Regardless of the self storage business model you settle on, it's essential to stay informed about your region's regulations and legal requirements. Moreover, investing in robust storage management software can be beneficial, as it will help keep all operations, customers, and accounts organized.

Besides operational elements, one of the most essential components of running a profitable storage unit business is providing customers with the best customer service possible. From responding quickly and efficiently to inquiries to resolving issues that may arise, customer service is key in making customers feel their belongings are safe with your storage business.

With a combination of excellent service, competitive pricing, a wide selection of units, and outstanding marketing, you can make your storage business stand out from the competition.

Pros and Cons of Owning Storage Units

It's important to weigh the pros and cons of owning storage units before taking the plunge.

For example, you'll want to carefully consider questions such as "How much does it cost to start a storage unit business?" and "What are the risks of investing in self-storage?"  The following list of pros and cons should help you make an informed decision:

PROS

  • High potential for growth: With a good marketing strategy and a quality product offering, storage unit businesses have a high potential for increased revenue year after year.
  • Steady income stream: Self-storage profit margins are generally quite high, meaning you can generate a steady income stream from your rental fees.
  • Steady demand: Demand for storage units is generally steady, meaning your business should be profitable regardless of economic cycles.
  • Limited amount of labor required: Storage unit businesses typically require minimal staffing, allowing you to keep labor costs low.
  • Low maintenance costs: There are some maintenance costs to keep in mind when running a self-storage business. These include regular upkeep and repairs to keep your storage units safe and secure for customers. It also often includes relatively comprehensive security measures, such as CCTV cameras and access control systems. However, the maintenance costs for these measures are relatively low compared to many other businesses.

CONS

  • High startup costs: Depending on the size and scope of your storage business, you may be looking at significant capital expenditure. There are many factors to consider, such as the location of your facility, the cost of the land you’ll be leasing or buying, and any necessary repairs and renovations if you're purchasing an existing facility. Startup costs can range from a few hundred thousand to several million. 
  • Market competition: Depending on the location of your business, you may face competition from other storage providers or have difficulty finding customers. This is where area-specific marketing is important.
  • Legal requirements: Depending on your locale, you may need to obtain special permits and adhere to certain regulations that govern the operation of storage unit businesses.
  • Tenant Issues: You may occasionally encounter problems with tenants who fail to pay rent or cause damage to the property. This can be a major headache if it’s not dealt with promptly. 
Although some challenges are associated with owning a self-storage business, it presents an excellent opportunity for both experienced entrepreneurs looking to diversify their portfolios and first-time business owners just starting out. With the right approach, a storage unit business has the potential to provide relatively passive income while significantly growing in value over time.

Storage Unit Income Calculator

A storage unit income calculator can be invaluable to entrepreneurs wondering how much storage units make a month.
By inputting various parameters, such as the number of units, rental rates, and occupancy rate, you can get an accurate estimate of your expected profits over time.

Additionally, some calculators allow you to forecast different scenarios, so you can see how changes in price, occupancy rate, and expenses would impact your bottom line. 

Using a storage unit profit calculator can give you an idea of what to expect in terms of income from running a storage unit business. This can be helpful when it comes to budgeting and determining how much you should charge for your units. It can also be used to assess the profitability of a particular location or business model.