Starting a self-storage business: steps and pitfalls
6 min read · updated
Renting out storage looks simple: you have space, the tenant pays. In practice what decides is everything around it: where the site is, how the tenant gets in, how they pay, and what happens when they do not. This guide walks through what to settle before your first tenant.
1. Location and access
Tenants usually look for storage near their home or business. What matters is how easy it is to reach by car, whether a van can stop in front, and the distance to main roads. Look at the competition: which prices and sizes exist, and are they fully booked? A good location with average units usually sells better than perfect units in a dead end.
2. Unit mix
Small units (about 1 to 3 m²) serve households and seasonal items, medium ones (5 to 10 m²) moves and small businesses, larger ones goods and companies. There is no single right mix. What matters is that you see which size is booked out first and plan further from that.
- Give every unit a unique number (for example A01). It appears in the contract, on the invoice and in the admin.
- Record the real dimensions and the height; people often ask.
- Plan a reserve for maintenance and damaged units.
3. Prices
The price depends on the size of the unit. Tenants compare the total per month. More in the separate guide on pricing.
4. Contract and terms
The rental contract and terms should state clearly what may and may not be stored, the notice period, what happens when payment is late and how the deposit is returned. Have these texts written or checked by a lawyer, and settle VAT on the rental with your tax adviser. These are not texts to copy from the internet.
5. Security and access
Customers want to know their things are safe and that they can reach them at any time. Decide how access works: a key, the tenant's own lock, a code at the entrance. A code should be changed when a rental ends, and you should know who had it when.
- Video surveillance and lighting are among the most common questions before signing.
- Insurance of the building and insurance of the tenant's goods are two different things; explain the difference in the contract.
- Decide what happens if a tenant cannot get to their unit.
6. Payments, invoices and reminders
Rent repeats, so writing invoices by hand and checking transfers is hard to keep up with even at a few dozen units. Decide which payment methods you offer (card with automatic renewal, bank transfer) and how you handle reminders. The more runs automatically, the less time every further unit costs.
7. Website and online booking
Most customers search online today and want to see the price at once. A website where the customer chooses a size, pays and receives access rents out in the evening and at weekends too. Without prices on the website every enquiry costs a call or an e-mail, and part of the prospects go to a competitor in the meantime.
Where BOXLY fits
BOXLY covers points 5 to 7: a booking website in your brand, payment by card and transfer, invoices, reminders and access codes. It is available in English next to the local language of your market. If you already keep units and tenants in a spreadsheet, read how switching works.
Frequently asked questions
How many units do I need to start?
There is no fixed number. What matters is that the business pays for itself at realistic occupancy, which you check through reservations and demand. Start with fewer and expand according to what gets booked out.
Do I need a special permit to rent out storage?
It depends on your situation (trade or company, type of building and its zoning). Ask a lawyer and a tax adviser and check with the building authority what the space is zoned for.
Is card payment or bank transfer better?
Card payment with automatic renewal means fewer late payments and less manual work. Some companies prefer a transfer. Offer both.
Try BOXLY in your own business
14 days free. The assistant guides you through the setup and you pay nothing before the trial ends.