Rent to Revenue Ratio .. MUST READ🤔

GM Store Nation,

Blooming awesome day at SM HQ yesterday …

• 5 Reservations

• 7 Move Ins

• Over 600 sq ft up 👏

Also pleaseeee check out the storage tip … I loved doing this deep dive in to the rent to revenue ration … I certainly got a lot out of this exercise, hopefully you’ll find it interesting as well 😃

Lets … Do … This …

Here's what coming your way today :- 😱 😎 🎯

🤐 A Self Storage Tip - “Rent to Revenue Ratio .. MUST READ🤔”

🤝 3 Self Storage News Stories

🧐 Yesterdays figures for each facility

🥸 1 Meme of the day

Self Storage Tip - 💡 💰 🤑

How much rent should you pay for a location?? … This is a question I get a lot

The way I look at it is rent is directly linked to revenue 🤔 (rent to revenue ratio)

Below is my rough rent and turnover at each of my sites-

Beverley Revenue - £190k

Beverley Rent - £20k

11% of my rev is rent

Willerby Revenue - £900k

Willerby Rent - £180k

20% of my rev is rent

Clough Rd Revenue (when mature) - £480k

Clough Rd Rent - £100k

21% of my rev is rent

Now this is the interesting one!! …. WREXHAM -

Wrexham Revenue - £108k

Wrexham Rent - £55k

THATS A MASSIVE 51% of my revenue is rent 😳

That’s way way way too much!!!

That’s one of the reasons why the previous operators were struggling

50% or your revenue CAN NOT be rent … Its unsustainable!

We can’t decrease the rent (ive tried) so we now need to focus our attention on increasing the revenue!

For me your turnover needs to be at least 4X the rent

So I need to increase the turnover of Wrexham from £108k to £220k … Not easy, but there’s a path we have laid out to get there … Watch this space I guess haha 😳

Back to the question …. How much rent should you pay for a location??

Ive pretty much answered it but to make it clearer (ha hopefully) … The rent should 25% of your revenue (30% max for a great location)

You should work out what the revenue is going to be at maturity and then divide by 4 and you shouldn’t really be paying anymore than that … Simples!

BTW …. I pay more rent than most because I am a big believer in the best location wins and the best location is also the most expensive! There will be people reading this that have a lot lower rent to revenue ratio 👋

Industry News -  🧐

• 1 - Safe Store Shares Down Nearly 30% But Here's Why You Should BUY BUY BUY 😳

• 2 - Rejuvenate at a Self-Storage Conference Like No Other: We're Sending One Lucky Winner to the Hawaii! Find Out How

• 3 - Pawtucket follows Providence in trying to limit self-storage. Is this a new trend?

The fun bit - My business .... Bare Butt Naked! 😲 🤫 🤭

Willerby (Hull) My big site -

• 3 Reservations

• 2 Move In's

• 0 Move outs

Month to Date -

• 349 Sq Ft Up

Reservations so far this week = 5

Move ins so far this week = 3

Clough Rd Figures .... The Automated Site

• 1 Reservations

• 2 Move in

• 1 Move outs

Month to Date -

• 835 SQ FT UP

Reservations so far this week = 1

Move ins so far this week = 3

Beverley … My Baby (First site)

• 0 Reservation

• 0 Move in

• 1 Move Outs

Month to Date -

• MINUS 395 Sq Ft for the month

Reservations so far this week = 0

Move ins so far this week = 0

Wrexham's Figures (Indoor) ... My First acquisition

Reservations so far this week = 2

Move ins so far this week = 3

Meme of the day - 👀 😂

Health and Fitness ... Move More = Live Longer - 🏋️‍♀️ 🏃

Weekly goals -

• Gym - 5 times

• Run - 0 … Im still injured with my knee … But im making sure my average steps are 20,000 per day. Gotta keep up the cardio

• Boxing - 0

Results so far -

• Gym - 0

• Run - 0k

• Boxing - 0

Yesterdays Steps - 23,675

Loads of self storage love,

Dean ❤️ 🙃