Ever thought about turning your spare garage or dusty attic gathering dust into a revenue source? Self-storage is a big business in the UK, and many people want to cash in! But before you jump in, there's the key question: how much can you actually charge per month?
Finding storage costs per month UK folks can trust is tough. How much people pay for self-storage depends on various factors- locations, unit size, and period, among others. Before diving into the nitty-gritty details try to understand why self-storage is a fantastic choice for storing items.
Self-storage offers flexible options for people looking to manage their belongings either during moves, renovations or just for business purposes.
The market for self-storage is also booming due to several factors such as:
After you go over the demand and growth for self-storage, look at the factors influencing the monthly cost of renting a self-storage unit in the UK.
The size of the unit is a major factor in the price of a storage unit. For example, small lockers may cost less than what you pay for a huge, garage size unit. The type of storage also plays a role. Some units offer simple storage spaces while others offer special conditioned storage such as temperature-controlled units.
Similar to the housing sector, location also has a massive impact on the price of a storage unit. Storage costs per month in the UK can vary depending on different places. Lively urban centres like London or Manchester cost more than quieter, rural areas. The cost is dependent on convenience, services offered, and price of land.
How long the customers intend to store their belongings can affect the price of the unit. Many facilities offer discounts for longer rentals which help those who are storing items for longer periods. Short-term rentals are usually useful for people in transition needing storage for their items. To make the offering more attractive to potential users, you can strategically set pricing for different types of rental periods.
If you offer extra services and amenities in your units it automatically bumps up the price. Services including pick-up and drop, 25/7 access, or high-security justify the higher fee. While maintaining may cost more, these services can improve usability and enhance revenue potential.
Wigwam elevates the standard with remotely managed storage facilities, offering keyless entry, Bluetooth-enabled locks, and remote access, to maximise your facility’s value for all stakeholders.
Don't skip insurance. Most storage facilities need users to insure their belongings. Insurance cost depends on what your item is worth. Offer detailed, cost-effective insurance options to stick out from the competition. It can position your facility as a secure option that users can trust.
Now that you understand the factors behind monthly rental costs, what about the average storage costs per month UK audience can learn from?
The Self Storage Association (SSA) UK's 2023 report states the average cost per square foot annually for a storage unit in 2023 was £27.19, which was a 4% increase from last year. This cost can change based on the factors mentioned above and the type of unit you’re providing.
The price you can charge for a single storage unit changes depending on local demand and property costs. Rates are higher in densely populated areas like London where space is a necessity. In contrast, rural areas demand less storage costs per month in the UK
Note: These estimates quoted above are taken from the National Averages reported in the SSA UK Annual Industry Report.
While monthly rental fees are the main portion you’ll charge, there are a few additional costs to consider:
Insurance: Some storage facilities require users to have insurance for their belongings while others offer insurance coverage. The cost can vary depending on the value of the stored items or the level of coverage. Users can get some quotes and shop around to find a suitable option.
Deposits: Just like renting a flat, some storage facilities ask for a deposit. Deposits are normally refundable fees paid in advance to cover any potential damages or contract violations.
Transport and Moving Expenses: Getting your belongings to the storage unit can also add to the list of expenses. It includes hiring a van, distance covered, and the amount of items taken in one trip. Hence, a nearby facility to the target demographic’s location can be significantly cheaper than other options.
Packing Materials: Boxes, bubble wrap, tape, and more are important to protect your belongings. Some storage facilities offer these materials which can be useful but a pricier option. Customers can get these materials from major retailers or online.
Securing the Self Storage Unit: The security of your unit is also important. While many facilities offer CCTV and gated access, a strong padlock is a handy tool. This is a small but vital cost, as a sturdy lock can stop theft and give you peace of mind.
Several factors influence the total cost when it comes to furniture storage.
Wigwam offers remote management, advanced systems, and secure access features to help your storage facility thrive in the competitive market.
There are a few different options to consider when it comes to self-storage, each with its pros and cons.
Indoor Storage: This is the most common type, offering secure units in a building. It’s perfect for furniture, valuables, and anything that users wish to store.
Container Storage: These are giant metal storage boxes which are a budget-friendly option. However, the stored items are exposed to temperature changes.
Lockups: Lockups are small, secure storage units or garages in a building. They are simple to use and affordable for storing items such as garden tools or vehicles,
Removal Depositories: Removal depositories offer basic storage space in a warehouse-type setting during temporary home moves. These act as a secure storage space while users move between properties.
Read: Differences and Similarities between Warehousing and Storage Services
Collection and Storage Services: These services are a game changer. It involves a company coming to your property, collecting your items, and taking them to the storage facility. It’s convenient for people short on time even though it can be pricier than traditional self-storage because of the added collection and transport service.
Now that you’ve understood the different types of storage and the costs associated with them, how will you make sure you don’t lose money on the self-storage investment?
Choose the Right Location: When it comes to space, whether it's residential or industrial, location is key. Consider sites that are accessible rather than in prime locations. Locations which are outside major urban centres can offer lower property rates and in turn lower overhead costs.
Convertible Buildings: Instead of building from the start, converting existing buildings into self-storage units is cost-saving. These require less initial capital and can be altered from time to time based on demands.
Smart Technology: Using technology you can save substantial costs. Automated access, remote management, and digital surveillance can cut down on costs. These also offer a more simple and secure service to customers.
Variable Pricing: Adjusting your storage costs per month based on unit demand and size can be a game changer. As demand increases for affordable, compact spaces, price your small units slightly higher than large ones per square foot and vice versa. Moreover, offer discounts for longer-term rentals to attract and retain customers.
Energy Efficiency: Opt for energy-efficient solutions such as LED lighting, solar panels, and climate control systems. These can adjust to the weather and reduce your monthly energy bills. These initial costs pay off in the long run.
Market Review: Research the competition in your area. What are they charging? What types of units do they offer? Understanding the local landscape will help you set competitive prices that attract tenants.
Confused about how to price your unit? Let Wigwam's expertise in remote self-storage solutions help you decide and navigate the market effectively.
Most storage facilities offer a minimum of one month of storage. However, this can vary from facility to facility. Some might offer weekly options which is perfect for those moving home or renovating.
Self-storage is simple: you provide a unit that you own either personally or as an investment, to others to store their belongings. People can usually access items during the facility's opening hours although many facilities offer 24/7 access as well.
It depends on location and features, but here’s a general guide:
To summarise, entering the self-storage market in the UK offers is a potentially lucrative opportunity. Knowledge of factors like location, unit size, rental duration, and additional services can help decide the average storage costs per month UK property owners have to consider.
Let Wigwam Storage Management optimise your self-storage and help you understand the potential storage costs per month in the UK. With Wigwam, you benefit from their expertise in developing successful joint ventures and partnerships. We will help you understand the true value of your property and build a sustainable income.
Get ready to transform your unused space into a high-performing investment opportunity with Wigwam!
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