The biggest mistakes self-storage investors tend to make involve a failure to properly evaluate the numbers that an existing property is doing. You need to ensure that there are no phantom leases or tenants who are late on rent in order to be confident that when you take possession of the property a large number of tenants won’t simply leave now that you are requiring them to pay what is owed.
Other than that, all of the traditional aspects of due diligence come into play. You need to ensure the HVACs, roofing, and drainage on these facilities are not held together with spit and glue, or you may find yourself with a large upfront investment in order to prepare them for tenancy.
Finally, be sure you know how the numbers actually work. Read the appraisal and ensure that a mentor or someone else knowledgeable can walk you through it. The most common way to get burned is simply not understanding what you are getting into.
