Why Due Diligence Matters

In self-storage acquisitions, the purchase price is only as good as the assumptions behind it. A thorough due-diligence process protects buyers from surprises — and gives sellers confidence that the deal will close.

Financial Due Diligence

  • ☐ Trailing-12 P&L — verify against bank statements and tax returns
  • ☐ Current rent roll — unit mix, in-place vs. street rates, tenant tenure
  • ☐ Month-by-month revenue (24–36 months) — identify seasonality and trend
  • ☐ Expense verification — confirm property taxes, insurance, payroll, utilities
  • ☐ Delinquency report — percentage past due, and the auction/lien process
  • ☐ Management-fee normalization — if owner-operated, add a 6–8% fee before valuing the facility

Physical Due Diligence

  • ☐ Property inspection — roof, drainage, paving, unit doors, gate system, lighting
  • ☐ Environmental assessment (Phase I) — required by most lenders
  • ☐ Title report — liens, encumbrances, exceptions
  • ☐ Unit spot-inspection — verify "occupied" units are truly occupied

Operational Due Diligence

  • ☐ Management-software access — review through the operating system directly
  • ☐ Lease audit — terms, rate schedules, special arrangements
  • ☐ Vendor contracts — what survives closing (pest control, security, etc.)
  • ☐ Insurance review — coverage and premium structure

Market Due Diligence

  • ☐ Competitive set — street rates, occupancy, and unit mix of nearby competitors
  • ☐ Zoning confirmation — current use permitted, plus expansion potential
  • ☐ Demand drivers — population trends, employment base, and submarket supply

Don't Skip the Operating Metrics

Confirm the five core performance metrics — especially economic occupancy and length of stay — against the seller's claims.

Working with Professionals

A specialist self-storage broker, attorney, and lender will materially improve outcomes. They catch the asset-specific issues — economic-vs-physical occupancy, lease quality, Phase I requirements, management software — that generalists miss. Start with a Broker Opinion of Value, and we can connect you with trusted self-storage-specific professionals.