A self storage build can be an exciting and lucrative investment, but the process comes with unique challenges that can impact costs, timelines, and overall profitability. Self storage investors must tackle issues such as securing planning permission, overcoming construction obstacles, managing business rates, and working with local authorities to ensure the project’s success. In this guide, we’ll cover the most common challenges faced during a self storage build and offer practical solutions to help you navigate them, so you’re fully prepared for a successful venture!

Planning Permission and Change of Use

One of the first hurdles in a self storage build is obtaining the necessary planning permission and approvals. Local regulations vary, and not all areas allow for self storage development.

Additionally, when it comes to transforming or repurposing a building, changing the use class (also known as change of use) is a vital part of the process. In the UK, properties are categorised under a system called the Use Classes Order. This system defines the type of activities or functions that are permitted in each building. For instance, a building that is classified as a storage facility may not be used for retail or residential purposes unless it undergoes a formal change of use application.

How to Overcome It:

  • Research planning regulations early: Check local guidelines to ensure your chosen location permits self storage facilities.
  • Work with planning consultants: Professionals familiar with local requirements can help you navigate the process.
  • Engage with local authorities: Attending planning meetings and addressing concerns proactively can increase your chances of approval.
  • Engage with neighbours and local community: This helps to identify any potential issues early on and can even increase the likelihood of receiving support for your proposal.

Business Rates

According to GOV.UK, business rates are based on your property’s ‘rateable value’. The money collected by the local council to help fund local services such as police, fire and waste management – like council tax.

For a self storage build, understanding business rates is important because they can be a hefty ongoing cost. The rates can affect the profitability of your facility, so it’s essential to plan and factor them into your budget. Operators may also be able to appeal their rateable value if they believe it’s too high or if the property value has changed significantly since the last valuation.

How to Overcome It:

  • Review relief schemes on the GOV.UK website: This can help you prepare for when you ask for professional advice.
  • Contact your local council: Find out if you liable for business rates, and if you qualify for any relief schemes.
  • Consult a professional: A tax advisor or solicitor specialising in property law can help educate you.

Funding

Securing funding for your self storage build can also be a challenge. Different lenders may have different processes, so it’s important to familiarise yourself with each one, and choose an option that works best for you and your long-term business plan.

How to Overcome It:

  • Seek funding from self storage-specific lenders: They are more likely to approve loans for your project.
  • Reduce risk through phased development: Instead of building the entire self storage facility all at once, consider a phased development approach. This allows you to secure funding for each phase separately, and it minimises the financial burden upfront.

Thinking about starting a self storage business? Contact self storage construction experts Kuboid today for a free consultation and site survey!

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