As a self-storage operator, your core business is renting out units for customers to store their belongings safely. But what if we told you there are several other clever ways to boost revenue from your facility?
By exploring new options, you can greatly increase your storage facility’s money-making potential.
In this guide, we've detailed 7 alternative income streams worth considering, along with potential challenges and things to think through to help you make the right choices for your business.
Rent Out Units as Micro-Offices and Coworking Hubs
With the gig economy booming and more folks going remote, affordable workspace solutions are in high demand. Capitalise on this by converting your larger units into micro-offices, coworking spaces or private studio suites - think units with Wi-Fi, meeting rooms and lounges. Offer free coffee, beer on Fridays or other perks to create a "WeWork for self-storage" vibe. This allows you to earn recurring rental fees beyond just storage.
Source: Unsplash
Host Events, Film/Photo Shoots
Your spacious corridors and blank unit walls are perfect for unique event venues or photography backdrops.
With staging and lighting, you can transform your units into sets for corporate parties, art exhibitions, and even film/TV productions and list them on platforms such as Venue Scanner and Scouty.
This expands your customer base to production companies, event planners, photographers and more. Bear in mind that you might have to inform customers that they won’t be able to access their units for the duration of the event/shoot.
And who knows, maybe your storage unit could be the set for the next Skyfall or Breaking Bad!
(Potential challenges: Securing temporary event/filming permissions, event insurance, security staff, clean-up protocols)
Source: Pexels
Offer Additional Business Services
Consider services complementing storage that customers need, like shipping/receiving parcels, printing, mailroom management or secure shredding.
This allows positioning your facility as a multi-purpose business hub earning income beyond just storage rentals and also increasing the customer types you can serve.
(Potential considerations: Dedicated space allocation, staffing, equipment costs)
Source: Pexels
Rooftop Leasing Potential
That expansive rooftop is prime real estate! You can lease portions to solar companies for panel installations and sell the renewable energy produced back to the grid.
On average, a 50,000 sq.ft roof could potentially generate between 375,000 and 750,0000 kWh/year of electricity annually - a lucrative income stream.
The rates vary between suppliers and often the smaller suppliers offer competitive rates.
You can also lease roof space to mobile operators seeking sites for radio masts and telecom equipment.
(Potential challenges: Planning permission, structural evaluations, negotiating lease terms)
On-Site Moving Services
When customers rent a unit, they inevitably need moving vans, trolleys, packing supplies and more.
Offering lorry/van hire, portable storage and equipment on-site means capturing this revenue rather than losing it to third parties. It's an added-value convenience.
(Potential challenges: Fleet management, staffing, parking/logistics)
Source: Pexels
Warehouse Rentals
As it takes a relatively long time to fill an entire storage facility, many self-storage facilities use their upper-floor spaces for commercial warehouse leasing, in addition to ground-level storage units to deliver income fast.
As the lower floors get occupied, they move the larger commercial transactions and replace them with self storage units that drive a higher square foot pricing.
By renting these upper areas to businesses needing warehouse/inventory space, you can generate, stable rental income in the early years of your storage facility.
(Potential considerations: Ensuring proper planning permissions, fire safety, and insurance for commercial use)
If you’re looking to improve your occupancy rate and fill your units fast, we recommend Stashbee’s Self Storage Lead Generation Tool.
With Stashbee, you can receive high-quality leads straight to your inbox at a fraction of the cost of paid advertisements.
Parking Rental
Many Self-storage facilities often have large parking lots that aren't operating at full capacity. You can list available parking spaces on marketplaces like Stashbee to earn rental income from businesses or individuals seeking parking solutions in that area.
(Potential considerations: Planning permission if substantially changing parking use, monitoring/security, fee collection)
The UK self-storage industry is brimming with creative ways to boost profits. Whether hosting events, leasing underutilised spaces or adding valued services, you can truly maximise your earnings potential!
Source: Unsplash
