Is Installing Electricity in Your Storage Units A Wise Investment?
Electricity in Your Storage Units
If you’re a storage unit owner/operator, you know that running a successful facility requires careful planning and smart investments. One investment that might be worth considering is the installation of electricity in your storage units.
While it might seem like an unnecessary expense, providing electrical access to your tenants is beneficial to your bottom line. Not only can it make your units more attractive to potential renters, but it can increase property value. Electricity in your storage units can provide you with a competitive edge in your market.
In this article, we’ll explore the pros and cons of adding electricity to your storage units. These guidelines will help you decide whether it’s a wise investment for your business.
For advice on this topic and other investment questions, contact Pinnacle Storage Properties.
The Pros and Cons of Adding Electricity to Your Storage Units
- Available electricity can be a significant selling point to potential renters.
- Tenants can conveniently charge electronics and power tools so that they’re ready for use.
- If tenants need to access their units in the evenings, they won’t have to rely on flashlights or other light sources.
- Units featuring electricity can increase the value of your property, making it more attractive to investors
- You’ll build a reputation for providing high-quality amenities
- Electrical access will help you stand out from your competitors.
- The initial drawback is the expense. If your units aren’t currently wired for electricity, you’ll need to factor in infrastructure costs. Then, you’ll need to hire an electrician to ensure that your units are properly wired and up to code.
- Electricity in your units will increase your utility costs, which will increase the monthly rental.
- There may be potential ongoing maintenance costs.
Factors to Consider Before Installing Electricity
Before you decide to install electrical access in your units, there are several factors that you’ll need to consider.
For starters, you’ll need to determine whether your property is already wired for electricity. If it isn’t, you’ll need to hire an electrician.
Another factor to consider is the demand for electrical access among your potential tenants. If you’re located in an area where a lot of businesses need storage for equipment, it’s a smart investment. However, if most prospective tenants don’t require electrical access, it might not be worth the expense.
Finally, you’ll need to consider the potential return on investment (ROI) of adding electrical access to your units. Consider the cost of installation, ongoing maintenance costs, and the potential rental income. It’s essential to crunch the numbers and determine whether the potential ROI justifies the expense.
How Adding Electricity Increases the Value of Your Property
As mentioned earlier, offering electrical access to your tenants can increase the value of your property. This makes your facility more desirable and can command higher prices than those that don’t have electricity.
Another way that offering electrical access can increase the value of your property is by improving your property’s overall image. Properties that offer high-quality amenities are often viewed as more upscale and desirable than those that don’t. This can help you attract higher-paying tenants, which can ultimately boost your bottom line.
How to Market Your Units With Electricity
If you decide to add electrical outlets to your units, it’s essential to market this feature to potential renters. There are several ways that you can market your units with electrical access, including:
- Highlighting the feature on your website and other marketing materials
- Offering tours of units with electrical access
- Using social media to promote this feature
- Offering special promotions or discounts to tenants who rent units with electrical access
With effective marketing, you can increase demand for these units and generate more rental income.
How to Calculate the Return on Investment (ROI) of Adding Electricity
Calculating the ROI of adding electricity to your units will depend on many different factors. However, there are some general guidelines that you can follow to help you determine whether the investment is worth it.
First, you’ll need to calculate the cost of installing electrical access in your units. This will include the cost of hiring an electrician, purchasing any necessary electrical infrastructure, and any other associated costs. Next, you’ll need to estimate the ongoing maintenance costs associated with providing electrical access to your tenants. This might include things like replacing outlets, repairing wiring, and other related expenses.
Finally, you’ll need to estimate the potential rental income that you could generate by offering electrical access. This will depend on the demand for electricity among your potential tenants, as well as the rental rates that you’re able to charge.
Once you have all of these numbers, you can calculate the potential ROI of adding electrical access to your units. If the ROI is high enough, it might be worth the investment. However, if the ROI is low, you might want to consider other investments that could provide a higher return.
Overall, offering electrical access to your tenants can be a wise investment for storage unit owners/operators. While there are some potential drawbacks to consider, the benefits of offering electrical access can ultimately outweigh the costs.
By carefully considering the factors involved and calculating the potential ROI, you can make an informed decision. If you do decide to offer electrical access, make sure to market this feature effectively, and use it as a competitive advantage.
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