Often Overlooked Self-Storage Construction Expenses for Owners
- garrett581
- Aug 8
- 3 min read
By Garrett Byrd
Self-storage developers often miss key owner-related construction expenses. These line items can add up fast and strain your loan budget if you don’t plan ahead.
It’s easy to focus on the headline costs—materials, labor, and contractor fees. However, at Storage Authority, we know the construction industry, and it's our job to provide the road map to our franchise owners so they can avoid the land mines.
There are several crucial expenses that owners frequently overlook. Forgetting these can lead to budget overruns or even loan shortfalls. Below are commonly missed expenses that every project owner should factor into the construction budget—and discuss with both your team and lender.
1. Building Permit Fees
Securing permits is not just a formality—it’s a legal necessity. Fees can vary widely based on project scope and local regulations. Always confirm all required permits and their associated costs early in the planning process.
2. Soil & Concrete Testing
Before pouring the first slab, professional testing ensures that your site is suitable for construction and meets safety regulations. These tests protect your investment and are vital for loan compliance.
3. Owner’s Project Manager
Hiring a dedicated project manager to oversee timelines, budgets, and contractor performance can be a smart investment. Their fees are often missed in initial budgets but are critical for smooth project execution.
4. Architect’s & Engineer’s Construction-Related Fees
Beyond initial designs, architects and engineers often charge for site visits, revisions, and construction-phase consultation. Make sure their construction-related services are outlined—and costed—in your financial plan.
5. Construction Inspection Fees
Inspections are mandated at various phases and may be performed by local authorities or independent companies. These recurring fees can add up if neglected in preliminary budgeting.
6. Utility Connection Fees
Connecting to water, sewer, electricity, and gas networks comes with administrative and sometimes installation expenses. These are separate from the monthly service bills.
7. Utility Construction Fees & Transformer Fees
Major projects may require utility companies to build additional infrastructure—such as transformers or upgraded service lines—which can be costly. Confirm these potential fees with your utility providers.
8. Office Setup Costs
Don’t forget the need to set up an on-site or off-site office. This includes the purchase of furniture, computers, software, and office products to keep your team effective and on track.
Pro Tips:
Review All Fees With Your Team: Collaboration prevents surprises. Meet with your architect, project manager, and financial adviser to review and confirm every line item—especially those listed above.
Include Every Expense in Your Bank Loan Budget: To prevent funding gaps, all expected costs should be documented and communicated to your lender.
Put Everything in Writing: Document every cost, agreement, and expectation—this creates transparency and protects everyone’s interests throughout construction.
Planning for these often overlooked expenses ensures a smoother project and keeps your budget and timeline on track. Thoughtful budgeting now pays dividends throughout your build!
P.S. Whether you're under construction or just started to look for land, now is the time to learn more about how to take advantage of the tax codes to increase your profits and cash flow.
Join us for a Live self-storage tax webinar
📅 Date: August 21, 2025
🕚 Time: 11 A.M. EST
Self-storage owners leave thousands on the table every year. Save your seat and learn how to stop doing that!
📩 Questions? Contact me at: Garrett@StorageAuthority.com
📞 Schedule a 1-on-1 Discovery Call: https://calendly.com/garrett-storage-authority
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