Can You Work Out Of A Storage Unit?
Why Consider a Storage Unit for Business?
There may be a great advantage to using a self-storage unit for your business making it a very appealing option, but there may be some pitfalls you will need to be aware of. Using a self-storage unit can offer a cost-effective solution for small businesses looking for extra space, especially if you work from home and you do not want everything taking over your house.
This can be particularly important for businesses who need to hold stock or equipment, rather than this being stored at home or in your garage you can use a self storage unit to store these items, allowing for them to be secure and organised. Although the possibility of actually working and running your business from a storage unit is far more complicated and can depend on the individual self-storage facility and the type of business you run.
Is It Legal to Work from a Self-Storage Unit?
UK Regulations and Facility Policies
Working from a self storage unit in the UK falls into a bit of a legal and practical grey area. While there are no specific laws prohibiting you from running a business from a self storage unit, whether you can or not largely depends on the storage provider and the facilities they offer.
Some self storage companies in the UK provide additional services, such as the option to rent office space or workshops alongside your storage unit. These setups are ideal for small businesses or startups that need both storage and a workspace. However, many self storage providers strictly prohibit working directly from inside the storage units themselves.
Local Zoning and Business Rates
Some councils may consider working from a storage unit as “commercial use,” which could entail business rates or require special permissions.
The main reason why a lot of self storage facilities will not allow for a self storage unit to be used for business use is due to local authority laws and restrictions. Many councils would see this as commercial use of the storage unit and therefore would require business rates to be paid on the individual units.
Insurance Considerations
Many self storage facilities will require you to insure the contents of the unit, but this does not cover any insurance you may have as a business. Often on business insurance, you will have to state the premises where the business is being run from and if business activities are undertaken outside of this location they will not be covered.
Types of Businesses That Can Operate from a Storage Unit
Inventory-Based Businesses
There are many types of businesses that can benefit from using a self storage facility, this can mainly be used for storage of stock for companies, such as eCommerce sellers, vintage resellers and event planners. They can all benefit from using a self storage unit of stock and therefore inventory management, but without operating their business on-site.
Service-Based Businesses
Another type of business that can benefit from using a self storage facility for their business is service-based businesses, such as builders, landscapers or fitness/outdoor training they can all store tools and equipment in a self storage unit without conducting on-site business activities.
Document and Archive Storage
One of the other types of companies that use self storage for their business is people who need to store significant amounts of paperwork or documents. As this can take up a lot of space and need to be kept for a long period of time. Document storage can be for legal or tax records and a self storage unit can offer a secure, safe and accessible option for document archive storage.
Benefits of Using a Self-Storage Unit for Business
Cost Savings
There can be a lot of benefits to businesses for using a self storage unit, cost can be a big benefit. Depending on the area you are looking to rent the unit, the cost difference between a commercial premises and a self storage unit can be significant.
Flexibility
Using self storage unit for your business can offer a greater deal of flexibility as you are not tied into a long commercial lease. When renting a self storage unit, you are not restricted and can upscale or downscale your storage needs quickly and conveniently without any hassle.
Enhanced Security
You need to know that your business assets are going to be safe and secure while you are storing them. Self storage facilities often offer high levels of security, with monitored CCTV, only allowing access to self storage tenants, there may be staff on site and security guards. This can offer peace of mind that valuable business assets will be safe and secure while in storage.
Limitations and Challenges of Working in a Storage Unit
No On-Site Utilities
There are some limitations to using a self storage unit for a business, many units do not have utilities within their units. Such as the basics of electricity and water and of course Internet which would mean the unit would not be suitable for full office use, only for storage.
Limited Accessibility for Work
You can be limited on the access, many storage facilities allow for 24/7 access to tenants but they do restrict access to anyone who is not a tenant. They can also stop the use of the unit for anything other than for storage purposes and by not obeying to this you can be in breach of your license agreement.
Restrictions on Customer and Staff Visits
Many facilities prohibit public visits and limit the number of individuals accessing a unit, which can be restrictive for businesses needing customer interaction.
If your business relies on customer interaction this may be limited by being at a self storage facility, as they can restrict the access to anyone who is not a tenant. Therefore this can impact your business if you rely on customer interaction and staff visiting.
Key Considerations Before Setting Up a Business in a Storage Unit
Checking Facility Policies
If you are looking to take out a self storage unit for your business there may be some considerations you need to make before signing up for a unit. It is important to check the facilities’ policies and if they will allow you to use the unit in the way in which you need. Do you need to have active use for the unit or will it just be used for storage and do you comply with the facility’s policies?
Insurance Coverage
Many self storage facilities will offer a level of insurance for you while you are using their units, but it is important to establish if this will cover what you need. It might be better to seek advice from an insurance provider to see if you need some additional cover to make sure your items are covered for what you need while they are in storage, as there may be some limitations that apply.
Logistics and Accessibility
One main consideration will be location and accessibility, is the storage facility you are looking to use for business storage conveniently located for you. It will need to be within proximity to the main business and ensure the access times work for you, this will mean you are able to make the most of the use of the storage unit, by keeping on top for inventory management and order fulfilment.
Is a Self-Storage Unit Right for Your Business?
Summarise that while self-storage units offer affordable solutions for inventory and equipment storage, they are not typically suited for businesses needing operational workspace. Conclude with advice to carefully evaluate policies, costs, and business needs before choosing this option.
Using self storage for business can be invaluable if the facility and unit work for what you need. It can be an affordable solution for businesses looking for storage of, equipment, stock and inventory freeing up space in the office or home. However they are not suitable for a business looking for an operational workspace, as this can be in breach of the facilities policies and not offer a suitable space to work. If you are looking to use self storage for your business you will need to undertake some research to ensure the facility offers what you are looking for. Do their policies allow you to use the unit in the manner you wish, will this provide a cost benefit to your business, will the facility benefit your business, all this will need to be assessed before choosing and committing to using self storage for your business.
