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How to Raise the Value of a Self-Storage Facility Before You Sell

Because buyers price net income, every extra dollar of yearly income is worth that dollar divided by the cap rate at sale. At a 7% cap rate, one more dollar of yearly net income adds about fourteen dollars of value. That is why small changes before a sale can matter.

1. Fill more units

Find which unit sizes sit empty longest. A short special on those sizes can fill them without cutting rates on the rest.

2. Raise rents in steps

Customers who have been with you a long time often pay less than new customers do. Check your rates against nearby competitors, then raise in small steps and watch move-outs.

3. Earn more outside rent

Tenant protection, fees, retail and truck rental are easy for a buyer to see and easy to grow. Keep them on separate lines in your books.

4. Trim the costs you control

Get new quotes for insurance and utilities and look at marketing that no longer brings customers. Property tax is usually not something you can trim before a sale.

Do it early

A buyer looks at the last twelve months, so changes take time to show up in the numbers. Start before you list.