Location-Based Consumer Services · Seller readiness
Selling a Self Storage business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should prepare unit-level rent rolls, occupancy history, delinquency, CapEx and local competitive data so site economics are transparent.
How the business works
Occupancy, effective rent, delinquency, unit mix, site condition and local supply determine value. Real-estate economics often dominate the transaction.
Issues to resolve
- Concessions hide effective rent
- Delinquency is not aged
- CapEx is deferred
- Rent roll is inconsistent
- Recent rate increases are treated as fully stabilized
Evidence to request and reconcile
- Unit-level rent roll
- Occupancy and rate history
- Delinquency reports
- CapEx/maintenance history
- Property tax/insurance
- Local competition/supply
Decision questions
- What is economic occupancy after discounts and delinquency?
- How much deferred site CapEx exists?
- What new supply is coming nearby?
- Are recent rent increases sticking?
- How much management labor is required?