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A booming sector, self-storage facilities cater to a growing number of customers who need to store excess household items. The good news about investing in storage space is that it can also generate additional income.
In Cape Town, you can expect to pay in the vicinity of these prices for different size storage units: small units from R450 per month. medium units from R1,035 per month. large units from R1,280 per month.
Profit margin of a self-storage business In many cases, someone may use the word profit as a proxy for financial success. For instance, one self-storage business owner might measure profitability based on the profit margin. According to one estimate, a self-storage facility generates a typical profit margin of 41%.
You can sit down and work from your storage unit, but you cant run a business from it. It is illegal to live in a storage unit, even if its only for a short period of time. You can set up your storage unit as a personal gym, but other people arent permitted to use it.
For self-storage investors, its a profitable, recession-proof option, with lower overhead and less hands-on management than many other commercial real estate investment opportunities. Heres what you need to know before you get started with your self-storage business.
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The answer is yes; you can, provided that its a manageable and simple operation that doesnt require docHub office space or further services. Storage units can be the perfect space for a growing business in terms of storage for products or offering a workbench to pick and pack.
However, one question many storage unit renters have is this; Can I use a storage unit as a workshop? Its a great question, and the answer is that, yes, you can use a storage unit as a workshop. Indeed, storage units make excellent workshops for many different projects, professions, and hobbies.
But, generally speaking, a self-storage business can be profitable. In fact, it can be more profitable than many other types of business out there. Self-storage has evolved from the homely stepsister to the Cinderella of the commercial real estate industry.
While self storage units are convenient and affordable, they cannot legally function as true office space. Thats because they have not been approved for occupancy, so you cant exactly set up your desk or meet clients there.
Your profit will depend on several factors, including the size and location of the facility, whether you used a loan to acquire the property and how youre using the facility to generate income. A self-storage facility can earn an average of $350,000-800,000 a year.

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