How to Start a Self Storage Business: A 10-Step Guide for New Operators
· Storagely · 6 min read · Updated
How to start a self storage business, step by step: market research, site and zoning, financing, build or buy, software, your website and opening day.
Self storage looks simple from the outside: a fenced lot, rows of doors, a monthly rent. Getting one open takes a long chain of decisions, from where to build to how renters will find you. This guide walks through each step in order, so you know what comes next and what to start early.
In this guide
- Research your market
- Choose how you'll get in: build, buy or convert
- Find the site and check zoning
- Write your business plan
- Arrange financing
- Plan the facility and unit mix
- Set up the business and your rental agreement
- Choose your software
- Launch your website before you open
- Open, and fill your units
Before you start: what you're signing up for
A self storage business is part real estate and part customer service. You'll need land or a building, money to build or buy, and a plan to fill units, often over many months. Most owners work with a team: a broker, a lender, a builder or developer, an attorney, an insurance agent, and the companies that provide your software and website.
Step 1. Research your market
Before you look at land, find out whether an area needs more storage:
- Who's nearby: population, new housing, apartments, colleges and military bases, and how fast the area is growing.
- Who you'd compete with: every facility within a reasonable drive, what they charge, what they offer (climate control, vehicle parking, drive-up units) and how full they seem.
- What's missing: a storage type, a price point or a location that renters can't easily find today.
Many new operators pay for a professional feasibility study before they buy land. Lenders often ask for one.
Step 2. Choose how you'll get in: build, buy or convert
| Route | What it means | Things to weigh |
|---|---|---|
| Build new | Buy land and build a facility from the ground up | The longest timeline, but you choose the layout and unit mix |
| Buy an existing facility | Take over a facility that's already operating | Renters from day one, but you inherit its condition, rates and reputation |
| Convert a building | Turn an existing building, such as a warehouse or a retail space, into storage | Can be faster than building new, but depends on the building and zoning |
Step 3. Find the site and check zoning
Look for a site that's easy to see, easy to reach and close to where renters live. Before you commit, check:
- whether local zoning allows self storage there, and what approvals you'll need;
- access for cars, trucks and trailers;
- utilities, drainage and room to expand.
Step 4. Write your business plan
Your business plan pulls Steps 1 to 3 together with your financing, operations and marketing, and lenders will expect one. See what goes in a self storage business plan, including the website plan most operators leave out.
Step 5. Arrange financing
Common options include bank loans, SBA-backed loans, investor partners and your own capital. Most lenders will want your business plan, market research and projections. Talk to more than one lender, and ask what they need to see for a self storage project specifically. See SBA loan programs.
Step 6. Plan the facility and unit mix
Decide what you'll offer, based on what your market research showed:
- unit sizes, from small lockers to large units;
- climate-controlled units, drive-up units, or both;
- vehicle, RV and boat parking, if there's demand;
- gate access, cameras and lighting.
Step 7. Set up the business and your rental agreement
- Form the business entity, register it, and get the licenses and permits your state and city require.
- Get insurance for the property and the business.
- Prepare your rental agreement with an attorney who knows your state's self storage lien law. See what a self storage rental agreement should include.
Step 8. Choose your software
You'll need three kinds of software, and they need to work together:
- Facility management software (FMS): units, rates, tenants, leases, payments and reports.
- Access control: gate codes and keypads.
- Your website and online rentals: where renters find you and rent.
Choose your FMS first, then make sure your website connects to it, so live units and prices appear online and rentals go straight back to your system. Read the self storage software buyer's guide.
Step 9. Launch your website before you open
Don't wait until opening day. A new facility starts with no search history, so the earlier your website goes live, the sooner search engines can find it:
- Before you buy: choose your name and check that the domain is available.
- When you break ground: launch a real website with a location page, the storage types you'll offer, and a waitlist or early reservations.
- During construction: set up your Google Business Profile as soon as Google allows, and add photos as the build progresses.
- Before opening: turn on online rentals and reservations.
Bluebird Self Storage started its search work 18 months before opening, and rented 103 units in its first month without paid advertising. Read the Bluebird case study.
Step 10. Open, and fill your units
- Let renters rent online, on one page, at any hour. See how a one-page checkout works.
- Decide staffed or unstaffed. If the office won't always be open, a mobile-first website and a QR code on your property can do much of what a kiosk does. Compare kiosks and mobile websites.
- Ask every new tenant for a review.
- Track rentals by marketing source, and put more budget where rentals come from. Use the self storage marketing plan template.
Your opening checklist
| Stage | What to have done |
|---|---|
| Before buying | Market research, a site that's zoned for storage, your name and domain |
| Before building | Business plan, financing, facility design and unit mix |
| When you break ground | Business entity, insurance, your website live with a waitlist |
| During construction | Software chosen and connected, Google Business Profile, rental agreement reviewed |
| Before opening | Online rentals and reservations on, gate access tested, staff trained or remote plan set |
| After opening | Reviews, tracking by source, and your marketing plan running |
How Storagely helps new facilities
Storagely builds self storage websites that connect to your facility management software, with:
- location, city and storage-type pages;
- one-page online rentals;
- SEO built in from the start.
New facilities can launch the website before opening, so it's ready to rent on day one.
Links:
FAQ
- How do I start a self storage business? Research your market, choose whether to build, buy or convert, find a site zoned for storage, write a business plan, arrange financing, plan your units, set up the business and rental agreement, choose software, launch your website early, then open and fill your units.
- Do I need a feasibility study? Many new operators get one before buying land, and lenders often ask for it. It shows whether there's enough demand in the area.
- Should I build or buy a self storage facility? Building gives you control over the design, but takes the longest. Buying gives you renters on day one, but you inherit the facility as it is. Converting an existing building can sit in between.
- When should a new storage facility launch its website? When you break ground, if not earlier. That gives search engines months to find the site before opening.
- Can a self storage facility run without staff? Many do, with online rentals, gate codes sent to the renter's phone, and remote support. Some add a kiosk; others use a mobile website and a QR code on the property.
Related reading
- Self storage business plan: the website plan most operators leave out
- Pre-launch SEO case study: Bluebird Self Storage
- Self storage rental agreement: what to include
Opening a new facility?
Book a demo, and we'll map out your website from domain to opening day.