So…you want to start a self-storage business? Sounds like a great plan!
The problem? You don’t have thousands of dollars lying around to build a self-storage facility. Don’t worry, while start-up funds help, you can scale an impressive self-storage unit business with little to no money (at least your own).
In this guide, I’ll walk you through how to start your own self-storage business with little investment. Here are a few strategies you can use when you don’t have cash to leverage.
Why Self Storage?
Self-storage is one of the simplest businesses you can start with limited risk and steady upside. People always need extra space, whether it’s for vehicles, furniture, business storage, or seasonal gear, and they’re willing to pay for it month after month.
Unlike other businesses, the self-storage market isn’t seasonal, doesn’t require daily management, and doesn’t involve dealing with inventory. You’re renting out space. That’s it.
The beauty of a self-storage company is that you can start small – one garage, one driveway, one backyard spot. You don’t need to buy a ton of land, hire staff, or pour money into a fancy storefront or storage solutions.
Plus, self-storage operating expenses are low. You just need a clean, secure space and people looking for somewhere to put their stuff.
Best of all, it offers steady cash flow that you can scale. One rented space can turn into five, which can turn into twenty. And if you follow the strategies in this guide, you can get there without sinking thousands of dollars you don’t have into traditional self-storage units.
9 Strategies for Starting a Self-Storage Business with No Money
1. Use Your Existing Property to Rent Space
Most people don’t realize you can rent almost any available space you have. Even if it’s just a room, a basement, a garage, or a corner in the backyard.
Did you know people will pay you every month just for a place to park their car, RV, or boat in your driveway? That’s right. You can start a micro self-storage company and earn rental income without ever purchasing land.
Peer-to-peer storage platforms like Neighbor help regular people become storage providers by connecting them with qualified renters in the area. Just snap a photo of the space you’ve got, and find out how much you can start making. The best part is that Neighbor handles all the payment stuff, so you don’t have to worry about hunting down rent.
Renting your own backyard for free is a great way to get your toes wet and start earning capital before even spending a dime.
2. Partner with Other Businesses
One person’s space is another’s treasure. Consider approaching other businesses that might have extra space, i.e., vacant parking garages, empty office spaces, attics, warehouses, or basement areas. In exchange for a portion of the profits, ask if you can list this extra space on a peer-to-peer platform like Neighbor. This way, you can leverage other businesses’ property to build your storage unit empire.
You’re not asking them for a favor. You’re offering them a new income stream they wouldn’t have without you.
What kinds of businesses to target:
- Office buildings (empty parking spots, storage rooms)
- Churches (large parking lots used only on Sundays)
- Auto repair shops (empty corner lots or fenced-in areas)
- Moving companies
- Retail strip centers (back alley areas or side lots)
- Farms or rural properties
3. Find Investors
If you don’t have the cash, find someone who does. Storage business owners will find that storage space is one of the easiest pitches you can make to an investor: it’s simple, low maintenance, and provides recurring income.
The key is showing proof of concept. Start with what you have. Maybe you rent out a corner of your garage on Neighbor.com for $150 a month. Do that for a few months. Once you have some money coming in, you can approach an investor.
Investors don’t care about dreams. They care about returns, risk, and proof. If you’re going to approach someone, you need to be ready to answer three questions:
- How much money do you need?
- How exactly will you use it?
- How fast will you make it back, and with how much return?
4. Get a Business Loan
Not everyone has an investor ready to fund them. That’s fine. If you have decent credit and a solid business plan, you can borrow small amounts to get started. You don’t need millions. A small business loan between $5,000 and $20,000 is usually enough to turn a vacant lot, a warehouse corner, or a few garage spaces into a cash-flowing business.
When you apply for a loan, you need to show proof of two things: 1) you have a way to make money, and 2) you have a plan in place for how you’ll pay the loan back.
You don’t need a 50-page self-storage business plan. A simple plan that shows you’ve done the market research will suffice. Just spell out how much space you control, how much you’ll charge, what your monthly income will look like, and when you’ll break even.
If you can show that you’re renting a fenced lot for $300 a month and expect to bring in $900 from RV storage after three months, lenders will take you seriously. Especially if you’re borrowing a small amount tied directly to cash flow.
Good places to find these small loans are local credit unions, SBA microloan programs, and community lenders. Peer-to-peer lenders like Kiva and LendingClub also back small operators, often with fewer hoops to jump through than banks.
Keep your ask tight. Borrow only what you need to get spaces up to a rentable condition. Consider what it will cost to clean up a yard, install a fence, pay the first month’s lease, and buy insurance.
Pro tip: Don’t waste loan money on branding, a self-storage business website, or fancy logos. Put every dollar into something that produces immediate income.
5. Sublease on Existing Land
You don’t need to buy property to build a storage business. You just need permission to rent it. Several existing landowners might be open to letting you rent their land to operate your business.
Landowners are almost always on the lookout for lucrative ways to monetize their unused property. That way, their land will eventually pay for itself. Your self-storage might just be the opportunity they’ve been looking for.
If large sprawls of land are hard to come by in your area, you could partner with an existing self-storage facility.
My advice? I suggest you take a drive around town. The best thing is to look for:
- Empty barns
- Fenced lots with weeds growing
- Commercial buildings with half-empty parking lots
These spaces are everywhere. They’re just invisible until you know what to look for. When you find a spot, approach the owner directly. Knock on doors, leave notes, or find them through property records if needed.
Here’s what to say when you approach them:
“Hi, my name is [Your Name]. I run a small business helping people store vehicles and equipment. I noticed you have some unused space. I’d love to rent it and bring you some extra monthly income without any work on your end. Could we talk about it?”
Two deal structures you can offer:
- Flat rent: You pay them a guaranteed monthly fee ($100–$500, depending on size and location)
- Revenue share: You keep 70%–80% of the rental income, and give them the rest
Example: You find a small mechanic’s lot sitting half-empty. You offer the owner $200/month to rent five open spots. You rent each spot yourself for $75/month. You make a $375/month profit with no ownership costs. If the owner prefers passive income without dealing with renters, they’ll often jump on a flat fee.
6. Use Free Marketing
When you have no money for ads, you have to be creative when it comes to visibility. Luckily, storage is something people are actively searching for locally. Luckily, most of the places people are looking are free to market on.
- Craigslist: Every 1–2 days. Relist often. Always post in the “Parking/Storage” category.
- Facebook Marketplace: Great for vehicle storage, small spaces, and even backyard spots.
- Nextdoor: Neighborhood-level exposure for free.
- Local Facebook Groups: Search for “City Buy/Sell/Trade” groups. Post often.
- Google Business Profile: Set up for free. Add a location pin, a few photos, your hours, and your phone number.
- Neighbor: This peer-to-peer renting platform lets renters find you. With just a few photos and a description, you can start earning a monthly income quickly!
- Signage: You don’t have to overthink marketing signage. “Affordable Storage Available (xxx) xxx-xxxx”
When you post, treat it like a business – because it is! Try to keep photos professional, descriptions thorough, and terms clear.
Short description
“Safe, affordable storage space for boats, trailers, RVs, classic cars. Secure, month-to-month rentals available. Convenient location. Message for details.”
7. Partner with Real Estate Agents or Property Managers
Real estate agents are constantly stumbling across exactly the kinds of properties you need, perfect for your daily self-storage business operations.
Here are a few examples of real estate that’s perfect for a self-storage facility:
- Vacant commercial buildings
- Empty warehouses
- Big residential lots that aren’t selling
- Frustrated landlords who can’t find tenants
Instead of buying these properties, you can step in and turn them into storage income, often with no money upfront. You just need the right agent or property manager feeding you deals.
8. Offer Mobile Storage
You don’t even need a building or a piece of land to start a storage unit company. If you have access to a trailer, shipping container, or even an old box truck, you can offer mobile storage instead.
Instead of customers bringing their belongings to you, you bring the storage to them.
You park it on their property, lock it up, and charge a monthly fee for as long as they need it. No utilities, no permanent site, no permits in most cases.
Look for a used enclosed trailer, a retired shipping container, or even a cheap moving truck. You can find decent ones for $1,500-$4,000 on Craigslist, Facebook Marketplace, or at auctions. If you don’t have the money, partner with someone who already owns one and offer to split the rental income.
Depending on your market and the size of the unit, you can charge a decent monthly rate.
9. Eliminate Waste
Most new business owners waste so much money and time on non-mission-critical operating expenses, such as a fancy website, marketing software, and attorney fees.
Look – there is a time and place for all of these things. I just want you to start making money first.
Storage isn’t complicated. The time you spend should be focused on securing land and securing renters. By following the techniques I listed above and using some efficient management and good business strategies, you can run a successful business without the overhead.
I’m not saying you should be disorganized. In fact, you can manage your storage business operations using free software and some creativity.
Here’s what you SHOULD do:
- Use Neighbor.com or Craigslist to test demand first and build a steady cash flow.
- Track income and expenses in Google Sheets.
- Use Google Voice for a free business phone number separate from your cell.
- Get basic general liability insurance (only once you’re handling serious assets like RVs or boats).
FAQs
Are Storage Units a Good Business to Start?
Self-storage units can meet the rising need for space if they are strategically located, well-marketed, and managed.
There are a host of reasons why someone might need storage: downsizing, renovations, storing business inventory, decluttering, and estate management, among others. Unlike other businesses, seasonality isn’t an issue, and a steady influx of clientele is to be expected since the target market is so vast.
How Profitable is a Storage Lot?
The self-storage industry is booming, but the amount of profit you stand to gain will vary according to a storage lot’s location, size, and operational effectiveness (as well as market demand). Strategically located, well-managed storage facilities can bring in a lot of money.
A medium-sized storage facility with 100 units, each rented for $100 per month, would generate $120,000 in revenue annually in a hypothetical situation. However, operational costs, taxes, and other expenses must be considered to calculate the true net profit.
Are Storage Units Passive Income?
While renting out storage space might be a relatively passive source of income, it does need constant administration and upkeep. Once functioning, storage units are a type of semi-passive income since they can provide money without continual day-to-day engagement.
However, running a successful storage unit business requires managing client inquiries, guaranteeing security, carrying out routine maintenance, and dealing with any problems that can emerge.
Is Self-Storage a Good Investment?
If well-executed, investing in the self-storage industry can be grossly profitable. The self-storage industry is a desirable alternative for investors because of the rising need for storage space, the opportunity for recurrent income, and reasonably steady performance during economic downturns.
However, successful business operations depend on extensive market analysis, smart site selection, successful marketing, and vigilant management. Before investing, it’s critical to evaluate your risk tolerance.
What Permits and Licenses Are Required to Start a Storage Unit Business?
The permits and licenses you need depend on your location and local regulations. Generally, they’ll require business licenses, zoning approvals, and possibly building permits.
How Can I Ensure the Security of My Storage Units?
The right self-storage security solution is paramount for building customer trust. Implement access control systems, surveillance cameras, proper lighting, and secure locks. Regular facility inspections and prompt addressing of any security concerns are the marks of a successful storage business.
