Facility Management Software Options

Requirements Loaded

Source: /home/ed/base/projects/Max Storage/.claude/knowledge/integration/operations.md

Status: POPULATED (version 1, 2026-04-01)

Key constraints extracted from compound requirements:

• Access log must be running from day one of paying customers (Phase 1 soft launch May/June 2026) -- not Phase 2. Without it, the consent evidence timeline is broken for the Oct/Nov 2026 resource consent application.
• Access log CSV export format is fixed: Date,Time,Bay_Number,Vehicle_Type,Customer_Reference. Column headers must be exact. Vehicle_Type constrained vocabulary: Car, Car_with_trailer, Boat_on_trailer, Caravan, Motorhome, Unknown. Customer_Reference must be an internal ID only, never the customer's name.
• GST-compliant tax invoice generation is non-negotiable before any invoice is issued (GST Act 1985; Tax Administration Act 1994 s 22). Required fields: "Tax Invoice" heading, Max Storage Ltd name and GST number, date, description, period, GST-inclusive total, GST component, customer name/address for supplies over $1,000.
• Data hosting must be NZ, Australian, or EU-adequacy-listed. US-hosted platforms without case-by-case Privacy Act review are not acceptable.
• Payment processing via tokenisation only (Stripe, Windcave, or equivalent PCI-DSS processor). No raw card data.
• Record retention 7 years from end of financial year the agreement ended. Must be exportable for IRD audit.
• Customer data deletion/anonymisation capability at 7-year mark. Access request responses within 20 working days.
• Tom is the day-to-day operator. Software must not require specialist IT knowledge for routine tasks (adding/removing PIN codes, reviewing logs, generating invoices).
• No Phase 1 platform that requires a paid ongoing monitoring contract.
• Access control hardware decision is unresolved: Hikvision DS-K2602 path vs PTI StorLogix path. Software options must be assessed for both scenarios.
• Phase 1 manual approach (Xero + spreadsheet) is explicitly stated as acceptable in the compound requirements for the early period.
• Privacy Policy must be drafted and approved before CCTV goes live and before the customer agreement is issued -- the software platform's agreement template must match the Privacy Policy and CCTV sign content (Interaction 3 in the compound requirements).

Open gap from compound requirements that affects this assessment:

Pin pad hardware model is not confirmed. Until Tom photographs the gate keypad, the software/access control integration path cannot be fully resolved. This assessment therefore covers both the Hikvision DS-K2602 path and the PTI StorLogix path as parallel scenarios.

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Context: What "Software System" Means at Max Storage

The compound requirements identify two distinct software layers:

Layer 1 -- Accounting and invoicing (Phase 1 minimum): Xero is named directly in the compound requirements as the appropriate platform. It is IRD-recognised and satisfies GST invoice obligations. This is not a decision to make -- it is a pre-existing recommendation from the Tier 2 requirements agents that this agent confirms and does not re-examine.

Layer 2 -- Facility management platform: A purpose-built self-storage management platform that handles customer records, bay assignments, PIN code management, access log collection/export, and automated billing. This is the subject of the options below.

The compound requirements are explicit that Phase 1 can run with Xero + manual records, but the facility management platform (or a logging-capable pin pad with confirmed CSV export) must be in place before Phase 1 launch. Not Phase 2.

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Access Control Integration Scenarios

All options below are assessed against two hardware scenarios already evaluated in /home/ed/base/projects/Max Storage/working/access-control/source-access-control.md:

Scenario A (Hikvision DS-K2602): Gate pad has Wiegand output; Hikvision DS-K2602 controller added. Log export via iVMS-4200 or ISAPI. No native self-storage software integration -- manual CSV export or custom API work required.

Scenario B (PTI StorLogix Cloud): Gate pad replaced with PTI Storm keypad; StorLogix Cloud controller. Native integrations with Storman, Sievert, and DoorSwap. CSV and API export native. Ongoing SaaS subscription ~$90--$180 NZD/month.

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Options

Option A: Storman Cloud (AU/NZ purpose-built self-storage platform)

Overview

Storman is an AU/NZ-built self-storage management platform used by a large proportion of NZ self-storage operators. It is the reference platform in the NZ market and integrates natively with PTI StorLogix access control hardware. Storman Cloud is the SaaS version (desktop and browser-based); the on-premise "Storman Pro" version also exists but is not recommended for a single-operator facility.

Features relevant to Max Storage:

• Customer management: name, address, contact, vehicle registrations, bay assignment, document storage
• GST invoicing: AU/NZ GST-compliant tax invoice generation; NZD supported; configurable invoice templates including all required GST Act fields
• Automated billing: direct debit and credit card via integrated payment processor (Stripe and AU payment gateways supported; Windcave NZ integration available but requires confirmation with Storman sales)
• Customer portal (Phase 3): Storman has a tenant-facing web portal for online payments and account management
• Access log: native integration with PTI StorLogix (see Scenario B); for Hikvision DS-K, no native integration -- manual CSV import or custom ISAPI middleware required
• Xero integration: confirmed -- Storman Cloud can push invoices and payments to Xero for GST return preparation
• Data hosting: AU-based servers (AWS Sydney region -- confirmation advised at contract stage). Acceptable under NZ Privacy Act 2020 IPP 12.

Requirements compliance (Scenario A -- Hikvision DS-K2602):

Requirements compliance (Scenario B -- PTI StorLogix Cloud):

Pricing model (NZD, indicative):

Storman Cloud pricing is not publicly listed; it is quote-based depending on bay count and features. For a 12-bay single-site facility, indicative range based on AU/NZ market knowledge:

Annual commitment typically 10--15% lower than month-to-month. Contact Storman NZ sales (via storman.com or Sentinel Self-Storage Systems, Auckland) for a current quote.

NZ support: Yes -- Storman has NZ customers and AU/NZ-based phone and email support. Not a US-only vendor.

Access control integration:

• Scenario A (Hikvision DS-K2602): No native integration. Manual CSV export from iVMS-4200 required; transformation to council CSV format is a manual or scripted step. This is workable but adds an audit trail requirement (the transformation must be documented).
• Scenario B (PTI StorLogix Cloud): Native direct integration. This is Storman's primary access control partner in NZ. PINs managed in Storman, synced automatically to StorLogix hardware.

Phase 3 upgrade path:

Storman Cloud already includes the tenant portal and automated billing features needed for Phase 3. No platform change required -- Phase 3 is a configuration and onboarding step, not a software replacement.

Upgrade triggers:

• Add tenant portal when customer base grows to 15+ bays and direct-debit setup overhead justifies automation
• No trigger to change platforms -- Storman scales to hundreds of bays without replacement

Risks:

• Pricing may be high for a 12-bay Phase 1 facility; cost-per-bay ratio is unfavourable at small scale
• Windcave NZ payment gateway integration requires direct confirmation with Storman -- Stripe may be the only NZ option, which is acceptable but should be confirmed
• In Scenario A, access log management sits outside Storman; the CSV transformation step must be designed and documented before Phase 1 launch
• Data hosting confirmation (AU vs US) must be obtained before contract signing to satisfy IPP 12
• Storman pricing is opaque; budget uncertainty until a quote is obtained

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Option B: Storeganise (global cloud platform, AU/NZ available)

Overview

Storeganise is a cloud-based self-storage management platform with AU support (AUD pricing available; Australian phone support). It is positioned as a modern, API-first platform with a customer-facing booking portal. It serves a global market with customers in AU; NZ is covered under the AU/Asia-Pacific service area. Starting price is AUD $90/month billed annually for a small facility.

Features relevant to Max Storage:

• Customer management: booking portal, online sign-up, e-signature for agreements, customer portal
• Invoicing: automated billing, payment processing via Stripe (confirmed); NZD support via Stripe's multi-currency capability
• GST invoicing: Storeganise supports "fully localised" invoicing -- NZ GST configuration is available (confirm at setup)
• Access control: PTI Security Systems (confirmed integration); Noke, Tapkey, Salto KS, Bearbox. No confirmed Hikvision DS-K integration.
• Xero integration: confirmed
• Data hosting: not publicly disclosed; company's privacy policy states data may be held outside the customer's jurisdiction. AU hosting not confirmed -- this is a gap that must be resolved before use.

Requirements compliance (Scenario A -- Hikvision DS-K2602):

Requirements compliance (Scenario B -- PTI StorLogix Cloud):

Pricing model (NZD, indicative):

Note: Storeganise pricing uses a dynamic calculator. The AUD $90/month starting price is the published floor for small facilities billed annually. Month-to-month is higher. NZD conversion at approximately 1.10--1.12 AUD:NZD.

NZ support: AU phone support (+61 7 3608 5351). No NZ-based phone number. Email support global. English-language. Not NZ-based but AU time zone compatible.

Access control integration:

• Scenario A (Hikvision DS-K2602): No native integration. Hikvision DS-K is not a listed Storeganise partner. Manual CSV workflow required.
• Scenario B (PTI StorLogix): Confirmed integration (PTI Security Systems listed as a Storeganise partner).

Phase 3 upgrade path:

Storeganise already includes the customer booking portal, online sign-up, and automated billing features needed for Phase 3. Phase 3 is a configuration step.

Upgrade triggers:

• No platform change needed at Phase 3 -- features are already included
• May need to re-evaluate if data hosting confirmation cannot be obtained for NZ Privacy Act compliance

Risks:

• Data hosting location is unconfirmed. This is a material risk under NZ Privacy Act 2020 IPP 12. If Storeganise data is held in the US without an adequacy agreement, this platform cannot be used without a case-by-case privacy impact assessment. This must be resolved before shortlisting.
• NZD is not a listed billing currency for the platform's own subscription -- minor operational friction, not a blocker.
• GST invoice template configuration must be verified at setup; "fully localised" claim is not specifically confirmed for NZ GST Act requirements.
• Cheaper than Storman for small facilities, but data hosting uncertainty is a higher compliance risk.
• AU support only -- no NZ-based account management.

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Option C: Xero + PTI StorLogix Cloud (no separate facility management platform)

Overview

This option avoids a separate facility management platform entirely for Phase 1. Xero handles all GST invoicing and financial records. PTI StorLogix Cloud handles access control, PIN management, and access log export. Customer records (agreement, identity verification, bay assignment) are maintained in a structured shared folder (Google Drive or OneDrive) with a spreadsheet index. This is the minimum viable compliant configuration that uses named platforms.

This differs from Option D (full spreadsheet baseline) in that it uses a real access control logging system (PTI StorLogix Cloud) for the consent evidence requirement -- the most critical gap that a pure spreadsheet cannot fill.

Features relevant to Max Storage:

• Xero: GST-compliant tax invoice generation, NZD, IRD-recognised, Xero files (AU-hosted, Privacy Act compliant), bank reconciliation, GST return preparation
• PTI StorLogix Cloud: per-customer PIN codes, remote add/remove without site visit, access log in CSV format (exportable with timestamp, zone, PIN reference, event type), NZ self-storage native
• Customer records: shared folder with signed PDFs (agreements), spreadsheet for bay occupancy, manually issued invoices from Xero
• Payment: manual bank transfer (customer pays Xero invoice via internet banking); or Stripe payment link from Xero invoice for card payments

Requirements compliance:

Pricing model (NZD, monthly incl. GST):

Note: PTI StorLogix Cloud subscription cost is in USD. The NZD equivalent fluctuates. Confirm current NZD pricing directly with SecureIT NZ (secureit.co.nz) or via Sentinel Self-Storage Systems.

NZ support:

• Xero: NZ-headquartered (Wellington); NZ phone and email support; IRD-recognised
• PTI StorLogix: NZ distribution via SecureIT NZ and historically Sentinel Self-Storage Systems; US manufacturer with NZ dealer support
• No single-vendor account management -- two separate vendors to manage

Access control integration:

• PTI StorLogix Cloud is the access control platform in this option; there is no separate access control/software integration gap
• If the gate pad must be replaced (Scenario B), PTI Storm keypad + StorLogix controller is the hardware component (costed in source-access-control.md: $1,550--$2,250 capital + subscription)
• If the gate pad has Wiegand output (Scenario A), PTI can wire to the existing keypad via a Wiegand-to-StorLogix interface (confirm with SecureIT NZ -- not all existing keypads are compatible)

Phase 3 upgrade path:

When the customer base grows and automated billing + customer portal become priorities, add Storman Cloud on top of this stack. Storman integrates with both Xero and PTI StorLogix natively. The transition is additive -- nothing in Option C needs to be replaced, only extended.

Upgrade triggers (when to add a facility management platform):

• When bay count exceeds 20 and managing customer records in a shared folder becomes error-prone
• When automated direct debit is wanted for more than 3--4 customers (GoCardless via Xero works but is manual-ish)
• When a customer self-service portal is wanted (Phase 3 priority)
• When Ed/Tom want a single dashboard rather than three separate tools

Risks:

• PTI StorLogix Cloud SaaS subscription is a USD-denominated ongoing cost; NZD fluctuation affects true monthly cost
• No single-vendor support; issues spanning Xero and StorLogix require managing two vendors
• CSV column format for council must be confirmed with PTI before Phase 1 launch -- if StorLogix's native export does not match exactly, a transform step is required
• Vehicle_Type controlled vocabulary must be mapped to StorLogix's internal event categories; this may require configuration at setup
• Phase 3 portal requires a platform addition, not just configuration
• StorLogix Cloud data residency for NZ Privacy Act must be confirmed with PTI/SecureIT NZ

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Option D: Spreadsheet + Xero + manual process (baseline)

Overview

The minimum viable Phase 1 configuration. Xero for GST invoicing. A structured spreadsheet (Google Sheets or Excel) for customer records, bay assignments, and occupancy snapshots. Manual invoice generation in Xero. PIN codes managed in whatever pin pad system exists on site (Merlin E840M keypads or existing gate pad). No facility management platform.

The compound requirements state that Phase 1 can use manual invoicing and Xero. However, they also state clearly that the access log in the council CSV format must be running from day one of paying customers. This creates a constraint that determines whether Option D is fully viable for Phase 1 or only for the pre-customer period.

What a spreadsheet-based workflow covers:

What a spreadsheet-based workflow does NOT cover:

The access log constraint in detail:

Option D is fully viable for Phase 1 if and only if the existing pin pad hardware can export access logs in (or transformable to) the council CSV format. There are two sub-cases:

• Sub-case D1: Pin pad can produce a timestamped log (gate pad model TBC). If the gate pad is a commercial-grade unit with CSV or RS-232 log output, Tom can manually export monthly and reformat to the council CSV format. This is workable for 12 bays with low traffic.
• Sub-case D2: Pin pad cannot produce any log (e.g., it is a standalone residential-grade unit like the Merlin E840M). In this sub-case, Option D cannot satisfy the access log requirement and is not viable as a standalone Phase 1 solution. A hardware addition (Hikvision DS-K2602 or PTI StorLogix) is required before the first customer receives a PIN code.

Requirements compliance:

Pricing model (NZD, monthly incl. GST):

This is the lowest-cost option by a significant margin.

When Option D is appropriate:

• Pre-customer setup period (before first customer): fully appropriate; use this time to configure Xero GST template and design the spreadsheet structure
• Phase 1, Sub-case D1 only: appropriate if the gate pad can produce a log; Tom manually exports monthly and reformats to council CSV
• Phase 1, Sub-case D2: NOT appropriate as the sole solution; requires hardware addition (then effectively becomes Option C)

When to upgrade from Option D:

• Immediately if pin pad cannot produce a log (move to Option C or A/B)
• When remote PIN code management becomes a practical need (bay full, frequent turnover requiring code changes without site visits)
• When more than ~15 customers means monthly manual invoicing takes more than 1 hour
• When a customer portal is wanted for Phase 3

Risks:

• If pin pad cannot produce a log, the entire access log compliance strategy fails. This risk must be resolved before Phase 1 launch by confirming the pin pad model.
• Manual processes are error-prone at scale. A spreadsheet customer list with 20+ entries and no validation becomes unreliable.
• No single source of truth for customer records, bay assignments, and access codes -- cross-referencing between spreadsheet and Xero and the pin pad is manual.
• Customer data in a Google Sheet is only as secure as the Google account it lives in -- access control and 2FA must be applied.
• The spreadsheet-to-council-CSV transformation (if Sub-case D1 applies) introduces a manual edit step that must be documented for consent evidence integrity (the compound requirements note that any transformation must be documented for the planning consultant).

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Recommended Option

Phase 1 recommendation: Option D first, with a conditional path to Option C.

The reasoning:

The compound requirements explicitly state that Phase 1 can operate on manual invoicing and Xero. The strategic context (guidance.md) ranks software platform sixth in the priority list -- below legal compliance, access control logging, cameras, contract and insurance. This is not a situation where a facility management platform should be bought before the compliance and operational basics are in place.

However, the access log gap is non-negotiable and time-sensitive. The recommended approach is:

Step 1 (immediately -- before Phase 1 launch): Confirm the gate pin pad model (Tom to photograph). This single action resolves the biggest unknown.

• If the gate pad can produce a timestamped CSV log: proceed with Option D for Phase 1. Design the monthly export and council CSV transformation process. Document the transformation step. Review at 6 months or when bay count reaches 15.
• If the gate pad cannot produce any log: the Hikvision DS-K2602 (Scenario A from source-access-control.md) is already the recommended access control addition. With the DS-K2602 in place, Option D becomes viable for the management layer (Xero + spreadsheet), with the DS-K2602's iVMS-4200 providing the access log. The monthly CSV export from iVMS-4200, transformed to council format, is the consent evidence record. This is Option D + DS-K2602, which is functionally equivalent to Option C without the StorLogix subscription.

Step 2 (Phase 2 -- when any of the upgrade triggers occur): Add Storman Cloud (Option A) as the facility management platform. Storman integrates with both Xero and PTI StorLogix natively, and is the NZ market reference platform. The Phase 3 tenant portal and automated billing are already in Storman Cloud -- no further platform change is needed at Phase 3.

Why not Option A or B immediately:

• Cost: Storman Cloud or Storeganise at $120--$200/month is difficult to justify for 12 bays in Phase 1 when Xero at $39/month does the non-negotiable GST invoicing job.
• Complexity: Adding a facility management platform before the access control hardware is resolved and before the Lightwire connection is confirmed live creates more setup risk than it resolves.
• Phase 1 customer base: 12 bays with known contacts is a scale where Xero + spreadsheet is genuinely sufficient.

Why Storman over Storeganise for Phase 2:

• Storman is AU/NZ-built and confirmed NZ-market; Storeganise data hosting is unconfirmed for Privacy Act compliance.
• Storman has direct PTI StorLogix integration and Xero integration -- the two platforms already in the stack.
• Storeganise is cheaper but introduces a data hosting compliance risk that requires resolution before use.

Summary table:

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Open Questions

1. Pin pad model confirmation (blocking). Tom must photograph the gate keypad and identify make and model before Phase 1 launch. This determines whether Option D is viable or whether a hardware addition is required immediately. Target: before end of April 2026.

1. Storman Cloud pricing for 12 bays. Request a current quote from Storman NZ sales (storman.com) or Sentinel Self-Storage Systems (Auckland) for a single-site 12-bay facility. This will confirm whether Option A is cost-justified for Phase 2 or whether the cost/benefit favours staying with Option D longer.

1. PTI StorLogix Cloud data residency. Confirm with SecureIT NZ whether StorLogix Cloud data is held in AU or NZ servers, or whether it is US-hosted. This affects Option C's Privacy Act compliance standing. If US-hosted, a privacy impact assessment is required before use.

1. Storeganise data hosting confirmation. If Storeganise is to be shortlisted, request written confirmation of data hosting location (AU or EU) from hello@storeganise.com before committing. Until this is confirmed, Storeganise carries a material Privacy Act IPP 12 risk.

1. Storman Windcave integration. Confirm with Storman whether Windcave NZ is a supported payment processor for NZ customers, or whether Stripe is the only option. Windcave (formerly DPS) is the most widely used NZ payment gateway and may be preferred by the bank or accountant.

1. Council CSV format confirmation with PTI StorLogix. If Option B or C is selected and PTI StorLogix is the access control platform, confirm with SecureIT NZ that the StorLogix Cloud CSV export can be configured to produce the exact column format required: Date,Time,Bay_Number,Vehicle_Type,Customer_Reference with Vehicle_Type constrained vocabulary. If the native export differs, document the transformation step.

1. Council CSV format confirmation with Hikvision iVMS-4200. If the DS-K2602 path is taken (Scenario A), confirm the exact column headers and field format of the iVMS-4200 CSV export, and document the transformation to council format before Phase 1 launch. This documentation is required for consent evidence integrity.

1. Xero plan selection. Confirm with the accountant whether Xero Starter (~$39/month, 20 invoices) is sufficient for Phase 1 (12 customers = 12 invoices/month) or whether Xero Standard (~$65/month, unlimited) is needed. Starter is likely sufficient for Phase 1; upgrade to Standard at Phase 2.

1. Microsoft 365 vs Google Workspace for shared folder. Customer records stored in a shared cloud folder must use a provider with AU data centre options to satisfy Privacy Act IPP 12. Google Workspace Business with AU data region, or Microsoft 365 with AU data residency, are both acceptable. Confirm which Ed and Tom are already using; avoid introducing a third platform for this purpose.

1. Access hours and after-hours lighting. technical/site-access-requirements.md is PARTIAL. After-hours customer access is expected but access hours and lighting requirements are not yet finalised. This does not affect software selection but affects operational procedures and may affect what the access log is expected to capture (e.g., whether after-hours access events are flagged differently).

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Market Research -- Competitor Pricing and Positioning

Requirements Loaded

Legal compliance compound requirements:

POPULATED (v1, 2026-04-01). Key constraint extracted: physical address (Te Waerenga Road, Hamurana) must not appear in any public advertising, directory listing, Google My Business profile, or social media until resource consent is granted. Marketing claims about security coverage must not be unsubstantiated. Consumer CGA obligations constrain liability exclusion language.

Operations compound requirements:

POPULATED (v1, 2026-04-01). Key constraints extracted: pre-consent customer acquisition by personal referral only; no public-facing website listing physical address; no wayfinding signs on Te Waerenga Road; no directory listings with address. Month-to-month agreements preferred. GST-inclusive pricing for simplicity at launch. Post-consent, one small identification sign at gate (~0.5 m2, no illumination) is the only expected on-property commercial signage.

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Marketing Language Constraints

The following constraints flow directly from the resource consent strategy, as consolidated in the legal-compliance and operations compound requirements. Every pricing and marketing recommendation in this document is made within these constraints.

Prohibited before resource consent is granted (target Oct/Nov 2026):

• Physical address (Te Waerenga Road, Hamurana, Rotorua) in any public-facing context: Google Business Profile, Facebook, Instagram, TradeMe listings, Neighbourly, website "find us" page, or any other publicly accessible medium
• Wayfinding signs on Te Waerenga Road or in Hamurana
• Any advertisement, listing, or post that could be acted on by a member of the public to drive to the site uninvited
• Marketing language describing the facility as a commercial storage park, storage centre, or storage business in terms inconsistent with the consent strategy framing (low-impact, ancillary rural use)

Permitted before resource consent:

• Word-of-mouth customer acquisition by Tom and Ed personally
• Private communication (phone, email) to referred customers disclosing the address after they have been screened and agreed to proceed
• A website describing available storage types and inviting enquiries by phone or email only, with no physical address
• Social media describing the business concept (rural lifestyle storage, boats and caravans welcome) without identifying the location, suburb, or street

Marketing language guidance:

The customer base is recreational and lifestyle-oriented (boating, lake use, caravanning) rather than commercial warehousing. All marketing language before and after consent should reflect this positioning. The business is unattended, has no retail component, no public counter, and no permanent staff. Language should emphasise personal, discreet, secure rural storage rather than high-density commercial storage.

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Competitor Pricing Analysis

Rotorua Region -- Indoor Self-Storage

Three National Storage facilities operate in Rotorua (Fairy Springs, Rotorua Central, Rotorua Airport). Storage King operates at 131 Te Huaki Crescent, Rotorua (Owhatā). No verified Kennards presence in Rotorua was found; Kennards covers Bay of Plenty from Tauranga.

National Storage -- Rotorua (three sites, 2026 pricing):

These are list prices before promotional discounts (National Storage regularly offers up to 50% off the first 1–3 months). The effective ongoing rate is the list price. Pricing is broadly consistent across the three Rotorua sites with some variation by floor level (ground floor premium at Fairy Springs; upper level slightly cheaper at Airport).

All three facilities list "Vehicle/Caravan/Boat Storage -- Uncovered" as available but do not publish hardstand pricing. Enquiry-only pricing for outdoor storage is National Storage's standard approach nationwide.

Storage King -- Rotorua (1 site, 131 Te Huaki Crescent):

Pricing not publicly available at time of research. Contact-based pricing only. Phone 07 3456 424.

Assumption: Based on Storage King Hamilton Central data in rawData.csv, Storage King Rotorua is likely priced in the range of $25–$45/m2/month for indoor units of comparable size to Hamilton, potentially at a slight discount to Hamilton Central given Rotorua's smaller population. Outdoor storage at Storage King Hamilton Central is listed at $10.42/m2/month (8x3m bay at $250/month). Rotorua outdoor is likely comparable or slightly lower.

Summary range -- indoor self-storage, Rotorua region:

$13–$30/m2/month depending on unit size and floor level. Smaller units command higher rates per m2 than larger units. This is a standard size-tier pricing pattern across the NZ market.

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Rotorua Region -- Outdoor Boat/Caravan/Trailer Storage

This is Max Storage's primary offering. Rotorua-specific outdoor storage pricing is not publicly listed by any major operator. The analysis below triangulates from the closest verified comparators.

National Storage Rotorua (all three sites):

Outdoor uncovered hardstand listed as available; pricing by enquiry only. No public rate found.

OTSB Te Puna (verified, rural Tauranga):

Covered storage for large trailer boats, RVs, campervans, motorhomes: $299/month or $70/week (approximately $3,588/year incl. GST). Unit size in rawData.csv: 10.5x3m covered bay = 31.5 m2 at $281.67/month (note: the rawData.csv figure of $281.67 and the website's $299 represent the same facility at slightly different data-collection dates; use $299/month as the current verified figure). This equates to approximately $9.49/m2/month for covered storage at a rural Te Puna location.

Lock and Store Te Puna (verified, rural Tauranga):

Outdoor RV/boat hardstand: $160/month for an 8x3m bay (24 m2). This is $6.67/m2/month for uncovered outdoor storage at a rural Tauranga facility. This is the most directly comparable verified outdoor storage price for a semi-rural NZ location.

Kennards Tauranga (partially verified):

Outdoor hardstand pricing from rawData.csv:

• 8x3m (24 m2): $231/month = $9.63/m2/month
• 10x3m (30 m2): $298/month = $9.93/m2/month
• 12x2.6m (31.2 m2): $315/month = $10.10/m2/month

These are urban Tauranga CBD prices. They represent the upper end of the outdoor storage range for BOP.

Storage King Hamilton Central (verified):

Outside storage 8x3m (24 m2): $250/month = $10.42/m2/month. Hamilton Central CBD location.

Stash-It Hamilton -- Horotiu (verified, semi-rural):

Outdoor storage:

• 7x4m (28 m2): $420/month = $15.00/m2/month
• 8x3m (24 m2): $420/month = $17.50/m2/month
• 8x4m (32 m2): $420/month = $13.13/m2/month

These Stash-It prices appear high relative to other semi-rural outdoor comparators and may reflect Stash-It's flat-rate pricing structure rather than market rate benchmarking.

Store-it Te Awamutu (verified, rural Waikato):

• 6x3m open (18 m2): $100/month = $5.56/m2/month
• 9x3m open (27 m2): $150/month = $5.56/m2/month

These represent the lowest verified outdoor storage prices in the dataset, at a rural Waikato location.

Summary -- outdoor/hardstand storage, BOP and Waikato comparators:

The effective outdoor uncovered range for rural/semi-rural NZ is $5.56–$9.49/m2/month. Urban CBD outdoor storage (Kennards Tauranga, Storage King Hamilton) runs $9.63–$10.42/m2/month but is not the relevant comparator for Hamurana.

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Other Bay of Plenty Comparators

Storage Base NZ -- Mount Maunganui (verified):

Indoor only. Single garage 6x3m (18 m2): $368.33/month = $20.56/m2/month. Standard container 6x2.5m (15 m2): $281.67/month = $18.78/m2/month. Urban coastal pricing; not directly relevant to outdoor rural storage.

Bay Secure Storage -- Te Puke (partially verified):

Approximately $40/week for unspecified indoor units. No outdoor storage pricing available.

Informal rural storage (assumption):

Farm sheds and leased paddock storage exist informally in the Rotorua/Hamurana area and represent the true alternative for the Max Storage target customer. Informal rural storage arrangements are typically uninsured, unsecured, and unlit. Pricing is highly variable -- $50–$150/month for informal farm shed access is a reasonable assumption. This is a relevant competitor because the Max Storage Phase 1 customer is likely currently using informal storage and would switch for a modest premium if security, access, and insurance conditions justify it.

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Demand Drivers -- Lake Rotorua/Hamurana Area

The following demand factors are specific to the Hamurana/Rotorua Lakes catchment and support the commercial case for outdoor boat and caravan storage at this location.

Boating culture and lake access:

Lake Rotorua is one of New Zealand's most actively used lakes for recreational boating, fishing, and water sports. The Hamurana boat ramp is one of the primary public access points to the northern section of the lake. Boat owners who launch from Hamurana or nearby ramps face a practical problem: towing a boat to and from Rotorua CBD on every use occasion is inefficient. Storage close to the launch point (under 5 minutes from the Hamurana ramp) has direct utility value. No commercial storage facility is currently located in Hamurana or the northern lake shore area. The nearest commercial options are Rotorua CBD (approximately 20–25 minutes from Hamurana).

Rural lifestyle demographic:

The Hamurana/Ngongotaha area has a significant lifestyle block and rural residential population. This demographic tends to own recreational vehicles (boats, caravans, motorhomes) that cannot be stored at small lifestyle block dwellings or town properties without resource consent issues of their own. The Max Storage location in a rural area, set back from the road, directly suits this demographic's preference for unobtrusive, secure, accessible rural storage.

Caravan and motorhome ownership:

Bay of Plenty and Rotorua Lakes are popular caravanning and motorhome destinations. Seasonal storage demand for caravans is high from approximately March through October (end of summer to spring). Motorhomes are stored year-round by owners who use them for specific travel periods. This is a reliable recurring storage demographic.

Seasonal patterns:

• Outdoor boat storage: peak demand is March–September (boats stored over winter, off-peak boating season); some year-round demand from fishing and water sport users
• Caravan storage: peak demand October–April (seasonal users); year-round demand from motorhome owners
• Net effect: outdoor storage demand at Hamurana is likely to be relatively balanced across seasons due to the combination of boat (winter peak) and caravan (summer peak) customers

Rotorua CBD traffic and access:

There is no major commercial storage facility in the northern Rotorua suburbs or the lake shore area. The absence of competition within approximately 15–20 minutes drive from the Hamurana launch ramp is a genuine market gap. Customers seeking boat storage close to the lake currently have no formal commercial option in the area.

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Recommended Pricing for Max Storage

All prices are GST-inclusive (15% GST included) as per guidance. These recommendations are based on the rural Hamurana location, the outdoor-primary product mix, and the relevant comparable facilities. A discount of approximately 15–25% relative to urban Rotorua and Tauranga CBD pricing is applied to reflect the rural location factor.

Location premium rationale

Although Hamurana is rural (discount vs. CBD), Max Storage has a specific demand advantage: proximity to the Hamurana boat ramp and the northern Lake Rotorua shore. This differentiates the location from generic rural storage (no lake access proximity) and partially offsets the rural discount. The recommended pricing reflects this partial offset.

Outdoor Uncovered Bay (Boats/Caravans/Motorhomes)

The primary product. Hardstand outdoor bays, gated access, CCTV, 24-hour pin pad entry.

Reference range from comparators:

Rural NZ floor: $5.56/m2/month (Store-it Te Awamutu)

Rural semi-commercial ceiling: $9.49/m2/month (OTSB Te Puna covered)

Urban CBD uncovered: $9.63–$10.42/m2/month (Kennards Tauranga, Storage King Hamilton)

Recommended pricing for Max Storage outdoor uncovered:

Note on bay dimensions: The actual available bay sizes at the facility are not confirmed in the knowledge base (site-access-requirements.md is PARTIAL). The above sizes are typical for the product type; Ed should confirm actual bay dimensions before finalising prices.

Recommended launch price: $230/month for a standard boat bay. This sits in the mid-range of the rural BOP outdoor comparators and is approximately 20% below Kennards Tauranga's equivalent uncovered outdoor bay. It is above the rural Waikato floor (Store-it Te Awamutu) and reflects the lake proximity premium.

Introductory pricing option: $200/month for the first 3 months for Phase 1 customers (initial referral cohort). This creates a soft launch anchor without establishing $200 as the permanent market rate. Phase 1 customers could be offered a month-to-month agreement at $200 converting to $230 on formal launch or on consent being granted.

Covered Bay (Shed Storage -- If Offered)

The shed at the facility provides covered storage capacity. The extent to which the shed bays are available for customer storage (vs. retained for agricultural use in support of the consent strategy) is not resolved in the knowledge base. If covered shed bays are offered:

Reference range from comparators:

OTSB Te Puna covered (10.5x3m): $299/month = $9.49/m2/month

Lock and Store Te Puna large indoor (36 m2): $285/month = $7.92/m2/month

Ezystor Tauranga large indoor (6x3m, 18 m2): $395/month = $21.94/m2/month

Recommended pricing for Max Storage covered shed bays:

Covered pricing should carry a premium of approximately 40–55% over uncovered outdoor pricing at the same location, consistent with the OTSB Te Puna covered vs. Lock and Store Te Puna uncovered differential. A covered shed bay at $340–$380/month would be approximately $60–$70/month more expensive than an equivalent-area outdoor bay -- a defensible premium for weather protection.

Note: Covered shed bay pricing should only be activated if the consent strategy permits it. The agricultural use proportion of the shed is a consent evidence factor. Ed and Tom should confirm with the planning consultant what proportion of shed use for customer storage is consistent with the non-notification consent strategy before pricing shed bays as a product.

Indoor Self-Storage (Small Units -- If Offered)

If portions of the shed are suitable for small indoor self-storage units (household goods, equipment), this is a secondary product. Given the rural Hamurana location and primary product focus on large vehicles, small indoor units are not the primary recommendation but could add revenue if the shed configuration permits.

Indicative pricing:

These rates are 15–20% below National Storage Rotorua list prices for comparable unit sizes, reflecting the rural location. They are above Store-it Te Awamutu indoor rates, which represent a small-town floor. The range is based on National Storage Rotorua Airport large unit at $179/month for 13.5 m2 ($13.26/m2) as the urban ceiling for the Rotorua market.

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Permissible Marketing Channels

All Phase 1 marketing must be consistent with the consent strategy constraint: no public disclosure of the physical address. Marketing channels are divided by consent phase.

Phase 1 -- Before Resource Consent (Pre Oct/Nov 2026)

Permitted channels:

1. Personal referral by Tom and Ed.

The primary and lowest-risk channel. Tom and Ed identify potential customers from their personal and professional networks (family, neighbours, farming contacts, boating club contacts, lake users). The address is disclosed verbally and privately to screened customers only. No written record of the address appears in any public medium.

1. Phone-enquiry-only website.

A simple website describing the type of storage available (outdoor covered/uncovered bays for boats, caravans, motorhomes; secure gated site; 24-hour access; Rotorua Lakes area) with a phone number and/or contact form but no physical address, no "find us" map, and no suburb identified more specifically than "Rotorua Lakes area" or "northern Rotorua". This is permitted because a member of the public cannot drive to the site from this information alone. The website must not appear in Google My Business (which requires a physical address). Domain registration and hosting should not list the physical address in WHOIS or other public registries.

1. Social media -- concept-only posts.

Facebook or Instagram posts describing the business concept (secure rural storage, boats and caravans welcome, Rotorua area) without identifying the location, suburb, or street. No map attachments, no GPS-tagged photos showing the site exterior. Responses to enquiries should invite the person to call or email for details -- the address is then disclosed privately if they proceed.

1. Boating and recreation community networks.

Word-of-mouth through Rotorua/Lake Rotorua boating clubs, fishing clubs, and caravan/motorhome groups. These are closed or semi-closed communities where Tom and Ed can speak directly to potential customers. No printed flyers or posters with the address should be placed at boat ramps, bait shops, or club notice boards during the pre-consent period.

1. Direct approach to known contacts.

Letters, texts, or emails to people Tom and Ed know are looking for storage (friends, neighbours, local businesses). These are private communications and do not constitute public advertising. The physical address may be included in a private email or letter if the recipient has been screened and is a genuine prospective customer.

Channels explicitly not permitted before consent:

• Google Business Profile listing
• TradeMe property/storage listings with address
• Neighbourly posts
• Printed flyers in letterboxes
• Roadside signs or A-frames on Te Waerenga Road
• Facebook marketplace listings with location tag
• Any listing that aggregators (Google Maps, Apple Maps, Bing) could crawl and associate with the physical address

Phase 2/3 -- After Resource Consent is Granted

Once resource consent is granted, the constraint on public address disclosure is lifted. The following channels become available:

1. Google Business Profile.

Create a full Google Business Profile with physical address, business category (self storage), photos, hours, and services. This is the highest-impact single marketing action post-consent. Reviews and map visibility compound over time; priority action.

1. TradeMe Property/Storage listing.

List outdoor bays and any available indoor units on TradeMe's storage category. TradeMe is a primary channel for NZ boat and caravan storage discovery. Include photos, dimensions, pricing, and address.

1. Website upgrade -- full location page.

Update the phone-enquiry website to include a location page with address, Google Maps embed, directions from Rotorua CBD, and proximity to the Hamurana boat ramp. This is a direct conversion driver for boating customers.

1. Boat ramp and recreation venue flyering.

Printed flyers at the Hamurana boat ramp public notice board, bait shops, fishing and boating clubs in the northern Rotorua area. These are targeted at the exact demographic (lake users) closest to the facility.

1. Neighbourly and local community boards.

Post to the Hamurana and Ngongotaha/Rotorua Lakes Neighbourly communities. These are hyperlocal channels that directly reach the lifestyle block and rural residential demographic.

1. Social media -- location-identified posts.

Facebook and Instagram posts can now identify the location by suburb and address. Posts targeting Rotorua/lake boating community groups become possible.

1. On-property signage.

One small identification sign at the gate (approximately 0.5 m2, no illumination, gate-facing only) is expected to be permitted under the resource consent conditions. This provides drive-past visibility for Te Waerenga Road traffic.

1. Self-storage directory listings.

Storeganise, Storman, and similar platforms maintain operator directories. Once consent is granted, listing on these directories increases visibility to customers searching for storage on those platforms.

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Open Questions

The following market data gaps and pricing decisions require Ed's input before the market research can be finalised.

1. Bay dimensions at the facility.

The actual dimensions of available outdoor bays and shed bays are not confirmed in the knowledge base (site-access-requirements.md is PARTIAL pending Easter 2026 site visit). Pricing cannot be finalised without confirmed bay sizes. Priority: confirm at Easter 2026 visit.

1. Proportion of shed available for customer storage.

The consent strategy requires maintenance of approximately 40% agricultural use. How much of the shed can be allocated to customer storage (covered bays or indoor units) without undermining the agricultural use evidence? This requires input from the planning consultant. Until confirmed, covered shed bay pricing should be treated as indicative only.

1. National Storage Rotorua outdoor pricing.

National Storage lists outdoor hardstand at all three Rotorua sites but does not publish pricing. A phone enquiry to one of the three Rotorua facilities (Fairy Springs is the most relevant, at 416 Ngongotaha Road) would confirm the going rate for outdoor uncovered storage at the nearest formal commercial comparator. This is the most important missing data point. Recommended action: call 07 357 2429 and ask for outdoor hardstand pricing for a boat on a trailer.

1. Informal rural storage pricing in the Hamurana/Ngongotaha area.

What do local farm sheds currently charge for boat storage? This is the true competitive floor. Tom is likely well-placed to know this through local knowledge. If informal farm storage is available at $80–$120/month for a boat bay, Max Storage pricing at $230/month needs a clear value differentiation (security, CCTV, 24-hour pin pad, insurance-compatible conditions).

1. Pre-consent customer acquisition -- existing online presence audit.

Operations compound requirements flag that any existing online presence (Facebook, TradeMe, website) should be audited for address disclosures before Phase 1 launch. Ed should confirm with Tom whether any current online listing identifies the Te Waerenga Road address and remove or edit those before customers begin accessing the site.

1. Post-consent marketing activation timing.

The planning consultant engagement (target August 2026) will clarify whether consent is likely to be limited term or indefinite. A limited-term consent would change the marketing investment calculus (shorter payback window). Ed should flag this to the consultant and confirm the likely consent duration before committing to post-consent marketing platform costs (e.g., Google Ads, ongoing SEO investment).

1. Consent duration and renewal marketing strategy.

Related to the above: if consent is granted for a fixed term (e.g., 5 years with right of renewal), the marketing strategy for years 4–5 should address renewal uncertainty to retain customers through the consent renewal process.

1. Storage King Rotorua outdoor pricing.

Storage King Rotorua (131 Te Huaki Crescent) is the only commercial self-storage competitor in Rotorua not under the National Storage brand. Their outdoor pricing is not publicly available. A phone enquiry (07 3456 424) would complete the Rotorua competitor picture. This is lower priority than the National Storage enquiry given National Storage operates three Rotorua sites.

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Financial Model -- Max Storage Operations

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Inputs Used

Sourcing agent outputs read:

Financial obligations compound requirements:

POPULATED (2026-04-01). Two upstream Tier 1 documents are NEEDS-INPUT:

• financial/loan-covenant-requirements.md — NEEDS-INPUT (no loan documents from Jenny)
• financial/intercompany-requirements.md — NEEDS-INPUT (no accountant advice)

All line items derived from these documents are flagged [UNCONFIRMED] throughout this model.

Guidance document (context/guidance.md):

Read. Key confirmed facts: Douglas Enterprises loan $470k @ 6.2% interest-only, 5-year term; intercompany lease structure; Lightwire $139/month; GST-inclusive pricing to customers.

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Phase 1 Capital Costs

All costs are NZD. GST-exclusive figures = GST-inclusive ÷ 1.15. Mid-point estimates used where ranges are given.

Total Phase 1 capital (new purchases, before GST refund): $11,530 incl. GST / $10,026 ex. GST

Items already purchased (TP-Link switch $218, internet hardware ~$600–$800 est.) reduce the remaining cash outlay. The above table counts the switch for completeness; internet hardware sunk costs are excluded.

GST input tax credits on capital (assuming both entities are GST-registered before any purchase):

$11,530 × 15/115 = $1,504 in input credits recoverable from IRD.

Net capital outlay after GST refund: ~$10,026.

Note on alarm system phasing:

The alarm system (Option A, $3,367) is classified as a Phase 2 item in the sourcing document but is noted in the financial-obligations compound requirements as a likely insurer condition of continued cover within 3–6 months of policy inception. It must appear in the pre-revenue or very early Phase 1 budget. This model treats it as a committed Phase 1 cost.

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Operating Costs (Annual)

All figures are GST-exclusive unless stated. GST on most operating costs is an input credit recovered on the GST return; the net cost to Max Storage Ltd is the GST-exclusive amount.

Max Storage Ltd (operator entity)

Sub-total Max Storage Ltd annual operating (excluding intercompany rent, excluding conditional monitoring, excluding Phase 2 SIM):

$1,452 + $130 + $407 + $125 + $717 + $3,044 + $2,391 = approximately $8,266/year ex. GST

Add mid-point public liability insurance ($2,391 ex. GST already included above).

Max Storage Ltd base operating costs (ex. rent, ex. monitoring): ~$8,266/year ex. GST

Douglas Enterprises Ltd (property owner entity)

Douglas Enterprises Ltd annual operating costs (confirmed items only):

$29,140 (interest) + $4,783 (building insurance mid-point) = $33,923/year ex. GST on confirmed items.

Add RLC rates mid-point ($3,478 ex. GST assumed) + BOPRC TBD + maintenance ($1,739 ex. GST) = total estimated $39,140/year [UNCONFIRMED on rates].

Intercompany Rent Placeholder Analysis

The intercompany rental rate is blocked pending accountant advice. For modelling purposes, a placeholder rate is derived from market evidence available in research-market.md on a per-m2 basis:

• Facility: ~360m2 rural shed, Hamurana
• Market reference: Lock and Store Te Puna uncovered outdoor storage $6.67/m2/month; Store-it Te Awamutu indoor $5.56/m2/month; OTSB Te Puna covered $9.49/m2/month
• Rural commercial shed comparable lease rates in Rotorua Lakes area: estimated $4–$7/m2/month gross for a simple rural shed structure (lower than storage operator pricing — this is a ground lease/building rent, not a storage rate to end customers)
• Applying $5/m2/month to 360m2: $1,800/month = $21,600/year ex. GST [UNCONFIRMED — assumption placeholder only]

This $21,600/year flows as:

• Cost to Max Storage Ltd: $21,600/year ex. GST (deductible operating expense)
• Income to Douglas Enterprises Ltd: $21,600/year ex. GST (taxable revenue, partially offsetting interest and rates)
• GST: Douglas Enterprises charges 15% GST on the rent invoice; Max Storage claims it back. Net GST effect across the two entities is zero provided both are GST-registered.

Douglas Enterprises Ltd net position on rent received:

Rent income $21,600 less interest $29,140 less rates (~$3,478 est.) less building insurance ($4,783) less maintenance ($1,739) = net deficit of approximately $17,540/year at the placeholder rent rate.

This deficit is the gap the storage business must ultimately close to make the overall structure viable for Douglas Enterprises.

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Revenue Model

Bay Configuration and Pricing

Bay dimensions are not yet confirmed (site-access-requirements.md is PARTIAL; Easter 2026 site visit pending). The following uses the market research recommended pricing and assumed bay dimensions.

Assumed bay mix (12 bays total — to be confirmed at Easter site visit):

Introductory Phase 1 pricing for first cohort (first 3 months):

Standard bays $200/month incl. GST ($174 ex. GST) converting to $230 at formal launch or consent.

Monthly Revenue at Full Occupancy (ex. GST)

Annual at 100% occupancy: $2,656 × 12 = $31,872 ex. GST

Revenue at Occupancy Scenarios

These figures are the taxable turnover to Max Storage Ltd (GST-exclusive). Customer-facing prices are 15% higher (GST-inclusive). GST collected is remitted to IRD and is not income.

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Break-Even Analysis

Break-Even Definition 1: Cover Max Storage Ltd Operating Costs (Excluding Rent and Capital)

Max Storage Ltd base operating costs (ex. intercompany rent, ex. capital amortisation):

$8,266/year ex. GST

Required monthly revenue: $8,266 ÷ 12 = $689/month

Revenue per bay per month (blended average across the 12-bay mix): $2,656 ÷ 12 = $221/bay/month ex. GST

Bays needed: $689 ÷ $221 = 3.1 bays = approximately 26% occupancy

At 26% occupancy (approximately 3 bays), Max Storage Ltd's operating costs excluding rent are covered.

Break-Even Definition 2: Cover Max Storage Ltd Operating Costs Including Intercompany Rent

Max Storage Ltd total operating costs (incl. placeholder rent $21,600/year, ex. capital):

$8,266 + $21,600 = $29,866/year

Required monthly revenue: $29,866 ÷ 12 = $2,489/month

Bays needed: $2,489 ÷ $221 = 11.3 bays = approximately 94% occupancy [UNCONFIRMED — depends on actual rent rate]

This is the key insight from the model: the intercompany rent is the dominant cost for Max Storage Ltd. Until the rent is set at the confirmed market rate, this figure cannot be finalised. At the placeholder rate of $21,600/year, near-full occupancy is required for Max Storage Ltd to break even on a cash basis.

If rent is set lower (e.g., $12,000/year):

Total Max Storage costs: $20,266/year → required occupancy: ~64%

If rent is set at $15,000/year:

Total Max Storage costs: $23,266/year → required occupancy: ~73%

Break-Even Definition 3: Cover Combined Group Operating Costs (Both Entities)

Max Storage Ltd total operating costs (incl. rent at placeholder): $29,866/year

Douglas Enterprises costs net of rent received: $39,140 − $21,600 = $17,540/year

Total group cash requirement: $29,866 + $17,540 = $47,406/year

The group breaks even (cash flow neutral) when storage revenue = $47,406/year ex. GST.

Required occupancy: $47,406 ÷ $31,872 = 149% of current capacity — not achievable with 12 bays.

This means the $470k loan interest cannot be fully serviced from 12 bays alone at the modelled pricing unless the facility is expanded. This is not a fatal finding — Douglas Enterprises may have other income, Tom's personal contribution, or the loan structure anticipated mixed-use revenue. However it must be noted explicitly.

At 12 bays fully occupied ($31,872/year), the facility covers its own operating costs and part of Douglas Enterprises' costs, but leaves a structural deficit of approximately $15,534/year at the group level.

Break-Even Months to Recover Phase 1 Capital

Phase 1 capital outlay (net of GST refund): ~$10,026 ex. GST

Net operating surplus at 70% occupancy (Max Storage Ltd, after all operating costs including rent at placeholder):

Revenue $22,309 − Total Max Storage costs $29,866 = deficit of $7,557/year at placeholder rent.

At the placeholder rent rate, Max Storage Ltd does not generate a surplus sufficient to recover capital at 70% occupancy. Capital is recovered only when the rent is set at a level that allows a surplus.

If rent is $12,000/year (lower bound scenario):

Revenue at 70% occupancy: $22,309

Total Max Storage costs: $20,266

Operating surplus: $2,043/year

Months to recover $10,026 capital: ~59 months (approx 5 years)

This confirms the model is sensitive to the intercompany rent rate. The accountant engagement is the single most important action for making this model workable.

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Year 1 Projection

Assumptions:

• Phase 1 soft launch May/June 2026 (7 months of the financial year)
• Occupancy ramp: 2 bays in month 1–2 (personal referrals), 4 bays months 3–4, 6 bays months 5–7
• Average occupancy over 7 months: ~4 bays = 33%
• Intercompany rent: placeholder $21,600/year ($1,800/month)
• All costs are full-year unless noted

Douglas Enterprises Ltd Year 1 position (12 months, full year loan costs):

Year 1 summary:

The first year is expected to run at a significant deficit across both entities, driven by:

1. Only 7 months of revenue (Easter 2026 setup; soft launch May/June 2026)
2. Low occupancy during ramp-up
3. Full capital expenditure in the first months
4. Full loan interest obligation regardless of revenue

This is structurally expected for a start-up storage facility. The test is whether Year 2 and Year 3 bring the model to break-even.

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Year 3 Projection

Assumptions:

• Stabilised occupancy: 70% (8–9 bays, consistent with the recommendation that Max Storage is positioned above the rural floor and has genuine lake-proximity demand)
• Resource consent obtained by late 2027 / early 2028, enabling post-consent marketing (Google Business Profile, TradeMe, flyers at Hamurana boat ramp)
• Pricing maintained at $230/month standard bay (no inflation adjustment for simplicity)
• Intercompany rent: placeholder $21,600/year [UNCONFIRMED]
• Annual operating cost increases negligible (no major new staff or systems)

At the placeholder rent rate and 70% occupancy, Max Storage Ltd remains in deficit in Year 3. This returns to the break-even analysis: 94% occupancy is needed at the placeholder rent rate.

If rent is $12,000/year and 70% occupancy:

Revenue $22,309 − costs ($30,415 − $21,600 + $12,000 = $20,815) = surplus of $1,494/year

If rent is $12,000/year and 85% occupancy:

Revenue $27,084 − costs $20,815 = surplus of $6,269/year

Douglas Enterprises Year 3:

Douglas Enterprises runs a structural deficit throughout the loan term unless:

(a) rent income from Max Storage increases as occupancy and pricing improve, or

(b) the rental rate is set at a level that better reflects cost recovery, or

(c) Douglas Enterprises has other income sources.

Reserve fund accumulation (Year 3):

If the business has any surplus, financial obligations compound requirements mandate accumulating a cash reserve equal to one year's interest ($29,140) before Year 5. At the current modelled figures, this reserve cannot be built from operating cash flow at 70% occupancy with the placeholder rent. Ed must decide the source of the refinancing reserve.

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Year 5 — Loan Refinancing Scenario

The Douglas Enterprises $470k loan matures at year 5. Refinancing is the expected exit strategy. The following analysis examines whether the business is in a position to refinance.

Year 5 financial performance target (from financial-obligations compound requirements):

NZ bank DSCR requirement: 1.2x–1.5x (UNCONFIRMED — standard NZ rural commercial practice)

Annual interest: $29,140

Required net income available for debt service: $29,140 × 1.2 = $34,968 minimum

"Net income available for debt service" means Douglas Enterprises' income after all operating costs excluding interest. At the current structure, this = rent from Max Storage − rates − building insurance − maintenance = $21,600 − $3,478 − $4,783 − $1,739 = $11,600 (placeholder, all UNCONFIRMED).

$11,600 is well below the $34,968 minimum DSCR target.

For refinancing to succeed on standard NZ bank terms, either:

1. The intercompany rent must be set at approximately $39,000/year ($3,250/month) to produce net income of ~$29,000 after operating costs, or
2. Occupancy must be significantly higher, and a lower rent rate compensated by higher storage revenue, or
3. The loan is refinanced at a lower principal (if some capital repayment has been made), or
4. Douglas Enterprises has additional income sources beyond the storage operation.

At maximum 12-bay occupancy (100%), annual storage revenue is $31,872 ex. GST. After Max Storage Ltd's non-rent operating costs (~$8,266/year), the maximum rent Max Storage Ltd could pay while remaining cash-flow neutral is ~$23,606/year. At $23,606 rent, Douglas Enterprises' net income after operating costs = $23,606 − $3,478 − $4,783 − $1,739 = $13,606/year. This still falls below the DSCR target.

The 12-bay facility at current pricing cannot generate DSCR 1.2x at current loan terms unless:

• The loan is partially repaid before year 5 (reducing interest burden), or
• Additional bays are added (requires consent to permit expansion), or
• Pricing is increased above current market benchmarks, or
• The refinancing bank accepts a lower DSCR (some rural lenders accept 1.0x–1.1x — UNCONFIRMED)

Year 5 scenarios:

DSCR calculated as Douglas Enterprises net income ÷ $29,140 interest. None of these scenarios achieves 1.2x DSCR without expansion or rent restructuring.

Year 5 interest rate stress:

At current NZ interest rate levels (OCR tracking, commercial lending typically 7–9% for rural commercial as at early 2026), refinancing at a higher rate than 6.2% is plausible. A rate of 7.2–7.5% is a realistic stress scenario. This would require higher occupancy or lower operating costs to maintain serviceability.

Reserve fund status at Year 5:

Target: $29,140 cash reserve (one year's interest).

At current modelled surpluses (small or negative), this reserve is unlikely to accumulate from trading alone. Ed must identify an external capital source for this reserve.

What must be in place at Year 5 for refinancing:

1. Building insurance at full replacement value — confirmed in force
2. Resource consent in place or formally consented activity documented (target: consent by late 2027)
3. 4 years of financial records showing occupancy and revenue
4. No material adverse change to property use classification
5. Cash reserve of $29,140 minimum
6. DSCR meeting the refinancing lender's threshold [UNCONFIRMED — obtain from lender]

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GST Summary

Both Max Storage Ltd and Douglas Enterprises Ltd should register for GST before any capital expenditure is incurred.

Max Storage Ltd — annual GST position (at 70% occupancy, Year 3 steady state):

At 70% occupancy with the placeholder rent included as an input credit, Max Storage Ltd is in a net GST credit position. This means Max Storage Ltd would receive GST refunds from IRD rather than making net payments. This changes at higher occupancy:

At 100% occupancy: output GST $4,781 − input credits $4,493 = net GST payable ~$288/year (effectively near-neutral).

Douglas Enterprises Ltd — annual GST position:

Intercompany GST wash:

Max Storage Ltd pays $3,240 GST on the rent and claims it back as input credit. Douglas Enterprises charges $3,240 GST and remits it to IRD. Net effect across the group: zero. Both entities must be GST-registered before the first rent invoice is issued.

Phase 1 capital GST refund:

$11,530 × 15/115 = $1,504 input credits on Phase 1 capital spend — recoverable in the first GST return period provided both entities are registered before any purchases.

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Sensitivity Analysis

Interest Rate Sensitivity (Douglas Enterprises)

At refinancing in Year 5, a +2% rate increase adds $9,400/year to Douglas Enterprises' interest burden. At full 12-bay occupancy, the facility generates ~$31,872/year storage revenue. The additional $9,400 represents approximately 29% of total facility revenue — a material impact.

Occupancy Sensitivity (Max Storage Ltd, with rent at $12,000/year lower-bound scenario)

Break-even at approximately 64% occupancy with rent at $12,000/year.

The lower-bound rent scenario is deliberately optimistic to show what is possible with accountant engagement.

Insurance Cost Variance

The insurance variance of ±$3,261/year is significant relative to Max Storage Ltd's operating surplus at low occupancy. The FMG quote arriving is the single most important near-term data point.

What if Occupancy Stays Below 50% for 2+ Years

This is the scenario the financial obligations compound requirements explicitly flags as a risk.

At 50% occupancy for 2 years:

• Max Storage Ltd cumulative deficit (vs rent $12,000/year): 2 × $4,330 = $8,660
• Douglas Enterprises cumulative deficit: 2 × ($39,140 − rent received $12,000) = $54,280
• Total interest paid but not serviced from storage: $58,280 over 2 years

Cash shortfall over 2 years at 50% occupancy approaches $63,000 across both entities. Without an external cash injection or Ed/Jenny's personal contribution, this is unsustainable.

Minimum viable occupancy for sustainability (without external funding):

60–65% (with rent at $12,000/year) or 70%+ (with rent at $21,600/year placeholder).

The Phase 1 ramp-up scenario (Month 1–12 at average 33% occupancy) is expected to run a deficit. The critical question is whether occupancy reaches 60%+ by end of Year 2. Given Hamurana's genuine lake-proximity demand advantage and no competing commercial facility within 15–20 minutes, a 60% occupancy rate by end of Year 2 appears achievable with active personal referral marketing — but it is not guaranteed.

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Key Risks and Open Questions

Weakest Assumptions in the Model

1. Intercompany rent — placeholder $21,600/year. This is the single most load-bearing unknown in the entire model. Every Max Storage Ltd surplus/deficit figure changes materially when the actual rate is set. The placeholder was derived from a per-m2 market estimate and should not be relied upon.

1. Insurance premium — no FMG quote yet. The compound requirements estimate ($3,000–$8,000 building + $1,500–$4,000 PL) is wide. A $5,000 premium swing changes the operating cost baseline significantly.

1. Council rates — UNCONFIRMED. The RLC rates estimate could be materially different from the published rural residential rate when applied to this specific property. Reclassification risk (rates doubling to $6,000–$12,000) would eliminate any operating surplus at current occupancy levels.

1. Bay dimensions. Revenue projections assume 8 standard 8×4m bays + 3 large 10×4m + 1 extra-large 12×4m. If the actual bay layout differs (fewer large bays, or smaller standard bays), revenue per bay changes. Confirm at Easter 2026 site visit.

1. DSCR requirement at Year 5 refinancing. The 1.2x figure is standard NZ rural commercial practice but is not confirmed from actual loan documents. The actual lender requirement could be higher or lower.

What Ed Needs to Decide or Action

Dependencies on Sourcing Agents Not Yet Resolved

• source-insurance.md — FMG quote outstanding. The insurance section of this model will need a full update when the quote arrives.
• source-access-control.md — Gate pin pad model unconfirmed. Capital cost range remains $1,030–$1,990 until Scenario A vs Scenario B is resolved.
• source-software.md — Storman Cloud Phase 2 pricing not obtained. Phase 2 software operating cost (est. $120–$200/month) not reflected in this model but should be added to Year 3 operating costs when the Phase 2 transition occurs.
• technical/site-access-requirements.md — PARTIAL. Bay dimensions and layout are assumptions in this model. Update revenue projections when this is confirmed.

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All figures NZD. GST-exclusive figures used throughout unless explicitly stated. GST-inclusive figures in the revenue model reflect customer-facing pricing.

Items marked [UNCONFIRMED] are derived from NEEDS-INPUT upstream documents and must be replaced with confirmed figures when those inputs are available.

Items marked [ASSUMPTION] are the author's estimates based on NZ first principles where no sourcing agent output was available.

This model is not legal, tax, or financial advice. Ed should review with his accountant before relying on any figure for a financial decision.