top of page
  • Writer's pictureMike Wagner

Analyzing the Financials of a Self Storage Facility

Updated: Apr 27, 2023

Simply put, I love self storage. The reasons for this love are numerous and far reaching but I'd be lying if I said that the underlying financials inherent to this industry weren't a primary draw.  While the following is a gross over-simplification, I hope that it will at least serve as a point from which the budding storage investor can start from.

Below is a breakdown of the "typical operating expenses" of a self storage facility.  Obviously these expenses are going to vary from market to market but when all is said and done, a well run storage facility can be run for approximately 33-35% of gross income with only minimal tending to by the principals. 

Expense What to Expect

Property Taxes     Varies Considerably (I pay 7% of gross)

Insurance     roughly 10 cents per year per square foot (2% of gross)

Advertsing      6% of Gross Rent: More in Year 1

Payroll/Benefits      $12 per hour includes Workers Comp./Disability/Payroll      -roughly 8% of gross as hours required increases proportionally with size of facility

Office Supplies     .5% of gross

Phone/Internet      1.5% of gross

Grounds Maintenance      3% of gross

Repairs/Maintenance      4% of gross

Trash/Water      1% of gross

Profesional Services     1.5% of gross

Miscellaneous     .5% of gross

266 views0 comments

Recent Posts

See All


I admit, I had an opportunity to buy a self-storage facility 15 years ago and quickly dismissed it. 250+ tenants and constantly driving over to rent units did not seem like a good deal to me! And at t

Self Storage Loans: What are your options?

We're living in a very exciting era for the self-storage sector, and savvy investors everywhere are wasting no time in capturing attractive double-digit returns. They realize the opportunities availab


bottom of page