…….. from $ZERO to HERO
turning unutilised space into income
The SELF STORAGE INDUSTRY was almost non-existent 25 to 30 years ago. It started when a few landowners began to build garages on their properties and rented them out. Additional properties were developed in phases as cash flow was generated. In these storage facilities, occupancy averaged 90 percent and rental income was decent. And so, developers copied each other and the self-storage industry grew.
Most of these self-storage businesses targeted the residential market and offered no additional services such as move-in transport or credit card payments to their customers. With little to no advertising, the industry was largely unknown to consumers.
Entrepreneurs woke up when South Africa was in the middle of a gigantic property boom. Building a storage facility was not viable due to the land being expensive. Those who were able to build new facilities were those who already owned suitable land to develop on. Buying an existing facility was also extremely difficult as the original developers were getting excellent returns and all hung onto their businesses. These storage facilties were generally not even zoned correctly nor did they have the correct fire regulations applied to the buildings.
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