With the right kind of prep, the sale price of a self-storage facility can potentially increase by six figures. There are several areas you can focus on, to yield good results. Before putting your self-storage facility on the market, boost the curb appeal, enhance revenue, put expense reporting in order, and more. An excellent option is to work with a brokerage service, as well.

Improve Curb Appeal

Attracting buyers for a self-storage facility is very similar to grabbing the interest of prospective home buyers. Curb appeal counts. Potential buyers are less likely to see a good investment in a facility that has overgrown weeds, an obvious need for some fresh paint, and other signs of poor maintenance or disrepair, such as potholes. To prep your storage facility, make needed cosmetic changes so that the photos you post online are appealing. This type of investment doesn’t always increase the value of the property, but it often helps to sell the facility more quickly.

 

Increase NOI

The net operating income (NOI) of your facility is a major determining factor of the sale price. Wait until the occupancy rate is between 75% and 95% before you list your self-storage facility on the market. Many owners tend to be hesitant about raising rental fees. Do a comparison of your prices with the competition’s rates, to determine if a hike in rent makes sense. If it’s feasible, raise rent prices, to further increase your NOI.

 

Add Revenue Sources

Rental income and late fees aren’t the only potential sources of revenue at a self-storage facility. Consider adding truck rental, tenant insurance, or retail sales. Retail experts say that enhanced revenue of $1,000 monthly can mean boosting the sale price by $100,000. Making decisions such as which new revenue streams to add as you prepare to sell is sometimes easier when you have expert guidance from an experienced broker.

 

The Books

Get your financial statements for the past 12 to 24 months in good order, which buyers usually request. Be sure all deposits have been made and accounted for. Clearly identify all expenses, including those of a personal nature. Look into the option of appealing the cost of real estate taxes.

 

Remove Delinquent Tenants

Take action on delinquent tenants. If they don’t catch up on payments, evict them. Potential buyers assume that they will have to remove such tenants, which will reduce occupancy. It’s better for you to get rid of delinquent tenants and boost occupancy with renters on record for paying on time.

 

Help from a Broker

The best advice for getting a self-storage property prepared for the market is to consult with an expert self-storage broker. The Weaver Realty Group is an Argus Self Storage Network Affiliate. For all of the benefits of a self-storage broker with a reputation of providing exceptional service, contact Josh Koerner of Weaver Realty Group today at 904-591-0140.