The self storage industry is booming and offers a lucrative opportunity. With a global market valued at $64.14 billion in 2023 and projected to reach $85.27 billion by 2030, the sector is growing at a steady pace of 4.15%.
This growth is fueled by rising populations, shrinking living spaces, and an ever-increasing demand for extra storage space.
While traditional indoor storage facilities dominate the market, container-based storage is carving out a niche. 16% of storage facilities already use this flexible and cost-effective model. The UK alone boasts over 730 self storage container sites, highlighting its popularity.
This guide will walk you through the essential steps to set up a shipping container storage facility. From finding the right location to understanding the logistics of container storage, this article will help you capitalize on this thriving industry.
What is Shipping Container Self Storage?
Shipping container self storage is precisely what it sounds like—using repurposed shipping containers as storage units. These rigid, weatherproof steel boxes were originally built to survive long trips across oceans, so they’re perfect for keeping people’s belongings safe and secure.
Unlike traditional indoor storage facilities, container self storage usually operates outdoors, with containers set up on a plot of land. This makes it super easy to grow your business—you can simply add more containers as your customer base expands.
People need rental storage space like shipping containers for various reasons, such as storing household items during a move, keeping business inventory safe, or tucking away seasonal items like camping gear or holiday decorations. Since containers come in different sizes, they’re a great fit for all storage needs.
What Are the Benefits of Shipping Container Self Storage?
Shipping container self storage is an appealing option for entrepreneurs and investors. Here are some key benefits:
✔️ Comparatively inexpensive to set up: A container-based self storage business is far more affordable than constructing or refitting a traditional storage facility. You can start small with just a few containers and expand as demand grows.
✔️ High demand: With more people living in apartments or smaller homes, the need for additional storage has skyrocketed. Lacking traditional storage options like garages, many use self storage for household goods, seasonal items, or even business inventory. This shift makes container self storage an ideal solution—offering a cost-effective and versatile way to meet this growing demand.
✔️ Good return on investment: While setup costs are low, the potential for consistent rental income makes this a profitable business model.
💡 Key point: How much ROI are we looking at?
In the UK, a modest £100,000 investment can yield an annual return of 23.30%!
🔹 Have a look at our self storage investment calculator to calculate ROI at different investment levels in a container storage business.
✔️ Easy to set up: Forget lengthy construction projects. Shipping containers are ready-made and can be quickly installed on-site.
✔️ Earn from spare land: If you have unused land, turning it into a container self storage site is a great way to generate income.
✔️ Scalable: Need more units? Just add more containers. Need to rearrange the site? Containers are easily moved and reconfigured.
✔️ Fewer pests: Shipping containers' sealed steel structure makes them less vulnerable to pests than traditional storage options. Also, unlike conventional facilities, containers are easier to maintain.
✔️ Lower taxes: Since shipping containers aren’t permanent structures, you may pay fewer or lower property taxes depending on location.
What are the limitations of using storage containers?
While shipping container self storage has many upsides, it’s not without its challenges. Here are a few limitations to consider:
➡️ Market competition: The relatively low cost of entry makes it easy for competitors to set up shop, so you’ll need to focus on standing out with great service and marketing.
➡️ Not suitable for all items: Unlike a typical storage unit, temperature fluctuations and potential condensation inside containers make them unsuitable for sensitive items like antiques, electronics, or documents.
➡️ Lower returns: While container storage offers solid rental income, it generally doesn’t bring in as much as a fully equipped warehouse. This is also true for the business's resale value.
How to set up a Shipping Container Self Storage Business
Step 1: Do your research
Setting up a shipping container self storage business requires thorough research and strategic planning. Here are the key elements you’ll need to address before you place an order for shipping containers.
Assess market demand
Begin by evaluating the demand for self storage in your target area. Analyze local demographics, housing trends, and business activities to gauge potential customer needs. For instance, areas with a high population density or many small businesses often have a greater need for storage solutions.
Find the right location
Choosing the right location is crucial for success. Consider the following factors:
✅ Accessibility: Ensure the site is easily reachable by main roads and close to residential areas or commercial businesses.
✅ Security: Opt for areas with low crime rates to enhance the safety of stored items.
✅ Zoning regulations: Verify that the land is zoned for commercial use and permits storage facilities.
Study the competition
Get onto Google Maps and investigate existing self storage facilities in the vicinity. Understand their offerings, pricing, and occupancy rates. This analysis will help you identify market gaps and opportunities to differentiate your services.
Stora founder Gavin Shields started by mapping every self storage facility in Northern Ireland and identified towns with no existing facility within 3 miles. He also found census data and ruled out any town with less than 15k inhabitants. This enabled him to find the right location for his storage facility.
Financial planning
Develop a detailed financial plan that includes:
💲Startup costs: Estimate expenses for purchasing or leasing land, acquiring shipping containers, preparing the site, and obtaining necessary permits.
💲Operational costs: Account for ongoing expenses such as maintenance, security, insurance, self storage management software, and marketing.
💲Revenue projections: Based on market research, forecast potential income from rental fees.
💡Pro-tip: A solid financial plan will guide your investment decisions and help secure funding if needed (more on this below!). |
Legal and regulatory considerations
Ensure compliance with all local laws and regulations. This includes obtaining the necessary business licenses, adhering to health and safety standards, and understanding tax obligations. Consulting with a legal professional can provide clarity and prevent future legal issues.
Step 2: Get funding
Once you've researched and planned your business, the next step is figuring out how to fund it. Starting a shipping container self storage business involves upfront costs, including land, containers, and setup expenses, so choosing the right financing option is crucial.
Here are three common approaches:
💰 Bootstrapping
This means using your own money to fund your business. Bootstrapping gives you full ownership and control, whether it’s savings, revenue from another venture, or selling assets (like shares, as Gavin did for his first storage company). However, it may limit how quickly you can scale your business.
💰 Loans
Banks or financial institutions can provide loans to cover your startup costs. This is a popular option when starting up a self storage facility.
To secure a loan, you’ll need a solid business plan that outlines your costs, projected income, and repayment plan. Loans can help you start strong, but keep the interest and repayment obligations in mind.
💰 Venture capital
Venture capital might be the answer for those aiming to grow a large-scale storage business. Private investors provide funding in exchange for equity in your company. While this option offers significant funding potential, it also means sharing decision-making with your investors.
Step 3: Acquire land (or rent)
Now that you’ve thought about and hopefully secured funding, it’s time to lock down a property for your self storage site. As discussed earlier, the location is key to your business's success. Once you’ve identified the right spot, you must decide whether to buy or rent the land.
➡️ Buying land: Purchasing land gives you full ownership and the flexibility to develop the site as you see fit. While this option requires a larger upfront investment, it’s often more cost-effective in the long run, especially if you plan to expand.
➡️ Renting land: Renting is a good choice if you’re testing the market or don’t have the capital to buy outright. Look for long-term lease options to ensure stability as your business grows.
Here are a few things to consider:
Ensure the property is zoned for commercial use and allows self storage facilities.
Factor in any additional costs for land preparation, such as clearing or leveling the site.
Negotiate terms carefully if renting, including lease duration and renewal clauses.
Step 4: Design your facility’s layout
Before you purchase any shipping containers, it’s important to prepare your site and design an efficient facility layout.
Proper planning ensures that your storage business operates smoothly and provides a positive experience for your customers. Here’s what to consider:
🌍 Site preparation
Your site must be ready to accommodate heavy storage containers.
Flatten and level the ground and create hard-standing or graveled areas to support the containers' weight.
Include pathways to make customers' access easy.
Plan efficient drainage systems to prevent waterlogging or flooding around the containers.
🔒 Security
Customers need to know their belongings are safe. Install fencing, entry gates, security cameras, and alarm systems to deter theft and ensure peace of mind. Consider integrating automated security systems that notify you of unusual activity in real time.
🔹 Have a look at our in-depth guide on self storage security for more information on how to protect your self storage facility.
💡 Lighting
Adequate lighting is essential for safety and convenience, especially if customers will access their containers after dark. Install floodlights or motion-activated lights in key areas. Solar-powered lighting can be a cost-effective and eco-friendly option.
🚗 Traffic flow
Think about how vehicles will enter, exit, and move around your facility. Design wide driveways and turning areas to accommodate larger vehicles like trucks or vans. Mark entry and exit points to avoid congestion.
♿ Accessibility
Make sure your facility is accessible to customers with different needs. The raised lip at the container's entrance can be a tripping hazard and impede the movement of heavy items. Install ramps to provide smooth access for customers, ensuring they are sturdy and have a non-slip surface.
📦 Container placement
Arrange containers to maximize space and convenience. Rows should be evenly spaced to allow vehicles and people to move comfortably. Consider numbered units or directional signage for larger facilities to help customers locate their containers easily.
↔️ Expansion planning
When designing your layout, leave room for future growth. Even if you’re starting small, planning to add more containers can save you from costly rearrangements later.
Step 5: Set up your operations
Once your facility is ready, it’s time to focus on the operational aspects of your business. Efficient systems and processes are key to running a successful self storage company. Here are some essential elements to get in place:
Booking system
Set up a user-friendly system for managing reservations and keeping track of available units. Software solutions can streamline the process, allowing customers to book online and giving you a clear overview of occupancy levels.
⚙️Tools: Stora
Entry management
Implement a secure and convenient entry system. Depending on your budget and the level of security you want to provide, this could be anything from keypad entry codes to access cards.
⚙️Tools: Smart entry systems
Payments and accounting
Set up a reliable system to handle payments through an online platform, bank transfers, or card payments. Many storage businesses also use accounting software to keep track of revenue, expenses, and taxes. With Stora, you can seamlessly integrate Stripe to automate payments and streamline your accounting processes.
⚙️Tools: Stripe, Tide, QuickBooks, Xero
Self storage facility website
Your website is often the first point of contact for potential customers. Ensure it’s professional, easy to navigate, and optimized for search engines. Include essential features like online booking, pricing information, FAQs, and a way for customers to contact you.
⚙️Tools: Stora, WordPress, Squarespace
💡 Pro Tip: While WordPress and Squarespace are great website builders, tools like Stora Self Storage Software provide an all-in-one solution for these operational needs. Stora offers a streamlined booking system, secure entry management, payment processing, and a fully integrated website—all explicitly tailored for self storage businesses. Investing in a comprehensive platform like Stora saves time, simplifies management, and enhances the customer experience, making your business stand out. |
Create a brand
You’ll also need to establish a strong brand identity. This includes designing a logo, choosing a memorable site name, and creating consistent branding across all touchpoints. A professional and cohesive brand helps build customer trust and sets your business apart from competitors.
🔗 Tools: Stora Brand Marketplace
Step 6: Buying shipping containers
The moment has arrived—it's time to purchase shipping containers for your storage facility business. Shipping containers typically come in standard sizes, with 20-foot and 40-foot lengths being the most common.
The 20-foot container is often preferred for self storage due to its manageable size and capacity. However, 10-foot containers are also available and can be helpful for customers with more minor storage needs:
Sourcing containers
You can purchase containers from specialized suppliers who offer new or used units. Used containers are more cost-effective but should be inspected for structural integrity and potential leaks. Ensure the containers are in good condition to provide a secure storage environment for your customers.
💡Key point: How is a storage container delivered? Containers are delivered individually on flatbed trucks equipped with cranes or tilt-bed trailers. The delivery vehicle will position the container at your site, and the crane or tilt mechanism will lower it into place. Preparing your site beforehand is essential to ensure that the delivery process is smooth. |
How much does it cost to buy shipping containers?
The cost of shipping containers varies based on size, condition (new or used), and location. Here's a general overview:
20-Foot Container:
♻️ Used: You can expect to pay between €1,400 to €2,000 in Europe and £1,700 to £2,000 in the UK.
✨ New: In Europe, they are between €2,400 and €3,200, and between £2,100 and £2,850 in the UK.
40-Foot Container:
♻️ Used: In the UK, prices typically range from £1,945 to £2,394, and in Europe, prices range from €1,800 to €2,000.
✨ New: In the UK, prices start at around £5,250; in Europe, they are around €2,800.
These prices are influenced by the container's age, condition, and current market demand. It's important to note that prices can fluctuate due to global supply chain dynamics and regional availability.
💡Key point: Where can you buy containers? When setting up your self storage facility, sourcing high-quality containers is crucial. Here are some trusted suppliers for storage containers in the US, UK, and EU: ➡️ United States: Cascade Container ➡️ United Kingdom: Cleveland Containers ➡️ Europe: Universal Storage Containers offer outdoor built-for-purpose units |
Step 7: Prepare your containers
Once your containers are on-site, initial maintenance is crucial to prepare them to meet customer expectations and ensure the longevity of your facility.
Security features
Install high-quality lockboxes, padlocks or smart entry systems to secure the doors. For enhanced security, consider adding steel bars or locking mechanisms for each storage unit.
Flooring
Inspect the container floors for damage or wear. Repair any issues and consider adding a protective coating or sealant to prevent moisture ingress and prolong the floor's lifespan. Alternatively, you could install wooden flooring and varnish it.
Lighting
Install interior lighting to improve visibility, especially if customers access their units during evening hours. Battery-operated LED lights or solar-powered options are cost-effective and easy to install.
Climate control
Shipping containers can experience temperature fluctuations and condensation. To mitigate these issues:
Ventilation systems: Install vents to promote airflow and reduce humidity.
Insulation: Apply insulation to the interior walls and ceiling to regulate temperature.
Reflective roof coating: Applying a reflective silver coating to the container's roof can reduce heat absorption, keeping the interior cooler. This type of coating effectively reflects sunlight and aids in UV resistance.
Step 8: Market your facility
Once your facility is set up, it’s time to attract customers. The key to successful marketing is driving potential renters to your website, where they can learn about your services and book their storage units. Here’s how to effectively market your facility:
➡️ Online ads: Use platforms like Google Ads or Facebook Ads to target local customers searching for storage solutions. Tailor your ads with location-specific keywords like “self storage near [city]” to capture attention:
🔹 Need more help? Check out our guide on PPC for your self storage business
➡️ Directories: List your facility on self storage directories and local business listings, such as Google Business Profile and Yelp. Ensure your contact information, hours, and website link are current.
➡️ Social media: Create engaging posts and ads on platforms like Instagram, Facebook, and LinkedIn to showcase your facility, share promotions, and build trust with your audience:
➡️ Leverage SEO (Search Engine Optimization): Optimize your website with relevant keywords, high-quality content, and fast loading speeds to rank higher on search engines. A well-optimized site helps customers find you organically when they search for storage solutions.
💡 Pro-tip: Direct all marketing efforts to your website to simplify the booking process. With an automated booking system, customers can view availability, reserve units, and pay without requiring manual intervention. |
The Benefits of Automation
By now, you’ve seen how much goes into setting up a self storage facility—from preparing your site and purchasing containers to marketing your services. But here’s the secret to running your business efficiently and staying ahead of the competition: automation.
Automation allows you to streamline key operations so you can focus on growing your business instead of getting bogged down in repetitive tasks. Whether managing bookings, processing payments, or granting unit access, automation runs your facility like a well-oiled machine.
Why automate?
✅ Convenience: Customers can book and pay for their storage units anytime, anywhere—directly through your website.
✅ Efficiency: Automated systems handle tasks like invoicing and access control, saving you time and reducing errors.
✅ Improved customer experience: A seamless online booking process and easy access to storage units build trust and encourage word-of-mouth recommendations.
✅ Scalability: As your business grows, automation ensures you can handle increased demand without hiring more staff.
✅ Less stress, more time: Automation frees up your time by reducing manual tasks, giving you more flexibility to focus on strategy, growth, or simply enjoying a better work-life balance.
Take the Next Step with Stora
Running a self storage facility doesn’t have to be overwhelming. Automation ties together every part of your business. With Stora, an all-in-one platform for bookings, payments, and access management, you can take your facility to the next level.
Streamline your operations, attract more customers, and grow your business—all with Stora.
