How to maximise facility value

Reproduced article from the Self Storage Association of Australasia (SSAA) Insider November 2023 – www.selfstorage.org.au

Highway Frontage | Matt Walsh:

Maximising the Value of Your Self-Storage Facility: Maintenance Strategies for Pre-sale 

Preparing your self-storage facility for sale is a complex task involving various aspects, but maintenance can significantly impact the sale’s success. Effective maintenance strategies can enhance your facility’s value, attract more potential buyers, and ensure a smoother transaction process. In this article, we’ll explore the importance of compliance maintenance and general building maintenance when preparing your self-storage facility for sale.

Compliance Maintenance: Ensuring Safety and Attracting Buyers

Compliance maintenance encompasses a range of crucial factors, including fire and safety measures and mechanical systems. Ignoring these aspects can jeopardise the safety of your customers and staff and deter potential buyers from investing in your facility. Let’s delve into the specifics of compliance maintenance:

Fire and Safety Inspections:

Regular maintenance of fire safety equipment is paramount. This includes fire hydrants, hoses, sprinkler systems (if installed), and inspections of fire doors. Ensure that the paths of access and egress are clear and unobstructed. Emergency and exit lighting should be in optimal working condition, and fire and smoke alarms must be inspected and tested periodically. Qualified consultants should conduct these inspections as required, as outlined in your building permit or advised by specialists.

Lift Maintenance:

Regular inspections and maintenance of lifts are crucial. Manufacturers typically provide guidelines for these procedures, and adherence is essential. A well-maintained lift ensures safety and reflects positively on your facility’s overall condition.

Documentation:

Maintaining detailed records of compliance inspections is vital. Increasingly, buyers request log books and inspection reports spanning several years. Incomplete or missing records can discourage potential buyers from proceeding with a purchase. A robust maintenance documentation system is essential to maximise interest from prospective buyers.

Consultant Engagement:

While some maintenance tasks can be handled in-house, it is advisable to engage qualified consultants for certain equipment, such as air-conditioning units and electric gates. Their expertise ensures that critical components remain in excellent condition.

General Building Maintenance:

Enhancing Your Facility’s Appeal

Apart from compliance maintenance, several general building maintenance tasks can help maintain or even improve your facility’s value:

Repair and Maintenance Sinking Fund:

Many facility owners allocate a portion of their revenue to a repair and maintenance sinking fund. This dedicated fund allows owners to budget for routine building maintenance tasks, ensuring they are addressed promptly. This proactive approach prevents minor issues from escalating into costly repairs and demonstrates a commitment to facility upkeep.

Doors and Paint:

Regular maintenance of door opening mechanisms can extend the life of your doors and enhance the facility’s aesthetics. A fresh coat of paint can breathe new life into the property’s appearance, leaving a positive impression on potential buyers.

Landscaping and Gardening:

Well-maintained landscaping and gardens improve the overall appeal of your facility. A visually pleasing environment can attract more customers and impress potential buyers.

Roof and Drainage Inspections:

Regular inspections and preventative repairs of the roof and drainage systems are wise investments. Concurrently, ensure that your plumber clears the gutters to prevent water damage and maintain the property’s structural integrity.

By implementing these maintenance strategies, you ensure the safety and satisfaction of your current customers and increase the attractiveness of your self-storage facility to potential buyers. Comprehensive documentation, proactive maintenance, and a well-kept property can significantly maximise the value of your facility and lead to a successful sale transaction. Ultimately, the effort you invest in maintenance will pay off in the form of attracting a larger buyer pool which should translate into a higher selling price and a smoother sales process.