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Choosing a state for self storage worksheet

By Marc Goodin, CEO Storage Authority Franchise wwwStorageAuthorityFranchise.com


Choosing 1 state vs another for your first ground-up self-storage *1


state income tax rates
5% to property tax adds up year after year!

 

Item Florida CT Winner Notes below


State income tax                  Zero                            6%                                FL                     *2


Distance to home                 Live here                  Friends/family/plane         FL                       *3


Land costs                             $1M+                           $1M +                          Tie                               


Time to Find land                 6 – 10 months          6-12 months plus.     FL                     *4


Labor/construction costs                10% higher in CT                               FL                                                        

Ave. rental rates use 10 x 10 non cc average /100 sf

                 $135/Month                  $145/month               CT                 *5


Property Taxes for a

65,000 NRSF    $40,000/yr.                $50,000/yr.                FL                 *6


Sf self-storage/person         6.5sf/person              6sf/person                 CT


Willing to travel to the

Facility weekly?                     Yes                              NO                               FL                                 *7

Winner: Florida              *8


*1 Numbers provided are examples only not necessarily correct.


*2 If the profit was $600,000/yr. you could lose .06 x $600,000 = -$36,000/yr.


*3  if you are planning on moving it would change the status. 


*4  5 Finding land far away typically takes much longer than finding land nearby.  Also, some states are easier to finding land, because of fewer flood plains, steep slopes, wetlands etc.


*5  For a 65,000 nrsf at 90% occupancy = 0.9 x 65,000 ( $145-$135)/100sf = $58,500 additional income


*6  This can be a substantial delta from one state to another, even $50,000 plus. property tax maps are available by state but best to call your local assessor.


*7 Besides being more work it typically means more expenses and less profits.


*8 If I lived in CT Not sure FL would win.  If I lived the same distance from both states say NC, FL may be the winner (love the warm weather ha-ha)


This blog shares where to find alot of the data you need to complete the worksheet:


Need help completing the form I can help marc@storageauthority.com


Want to learn more about franchising: www.StorageAuthorityFranchise.com

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