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22 January 2018

How To Make Successful Silo Rentals Ventures

By Donna Hughes


There are some benefits accruing to those who store grains in silos as compared to ordinary warehouses. And here is a simple fact, in the silo, the grains are stored horizontally while in a warehouse the storage pattern is horizontal. As such, if you want to invest in the Silo Rentals business, there are some considerations to make. They include the following.

Ensure you are developing the asset on a property that holds a valid title deed. If the title is defective, the person claiming the valid title can come and sue you for trespass. You lose the land and all the investment in it. Also, follow the laid down rules on how this kind of warehouse should be developed.

Select the best type of experts you want to do the construction work for you. If possible, you should get the best clique of engineers and architects who will be able to provide the results you need on a favorable budget. If you use skilled and competent professionals, chances are high you will enjoy superior quality services.

Analyze the market trend and availability of the area. Most customers who may need to rent out these silos are people or corporations with a very high demand for the grains. They may be government bodies or even the maize and wheat millers or any other type of millers. Assessing whether there is ready market will help avoid the possibility of wasting your investment.

Check the valuation report and agree on the purchasing price for the project. If the facility is in a bad state, you will use the state as a leverage to negotiate for a reduction in price. The most important feature here is to ensure you have enough resources that will allow you refurbish and meet all the other necessary costs. Also, ensure the transaction you make connotes the value you receive from the engagement.

Make sure you have a valid insurance policy for the enterprise. Engage the experts in this field to see the common risks which you insure as the owner. The rationale for this is that there are other risks that you cannot insure against, and the person renting out has to purchase a cover for. It is the requirement in insurance that you only purchase a cover for the items you have a direct claim for.

Ensure your facility observes all the laid down rules by the various state authorities. These include the storage directions as well as the presence of safety standards. If any of this is found to be missing, the authorities have the discretion to shut the place down and even prosecute you for noncompliance. As such, it is in the best interest of your business to make certain you, and your tenant complies with these regulations.

As an investor, your sole interest in the matter is to maximize wealth and to create value for the people. Creating value requires you abide by some set standards. In everything, ensure you prioritize the safety of your customers at all times.




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