A typical storage facility of 500 units, with an occupancy rate of 90% and a participation level of 75% will generate revenue from 338 units. The majority of tenants opt for a $2,000 Protection Plan. Based on this valuation, the average cost per participating unit is $1.17 per plan per month. With 338 units participating at an average charge to the tenant of $10.00, the facility reflected by this example would generate a monthly gross profit of $3,380 or $40,560 annually.
Amount you Charge – Cost of Participation = $Profit
$Profit x #of Tenant Protection Plans = Potential Profits