Investing is not for the faint of heart. Everyone has heard horror stories of investors who lost money on a “sure thing.”
With any investment, there will always be some risk. But some investments are safer than others, and it’s possible to mitigate risk.
One of those investments is self-storage facilities. You may not have considered self-storage as a potential investment opportunity. It’s not one that many people would consider.
But self-storage is actually a wise and safe investment. Here’s why you should invest in self-storage.
Self-storage operations are recession-resistant. Self-storage real estate assets produced positive returns during the Great Recession of 2008.
So far that’s proven correct during the COVID pandemic too. When colleges shut down and switched to virtual classes, many students found themselves without a place to store their belongings. Suddenly, there was an entire demographic that needed self-storage.
Or they moved back home with their family and brought their belongings with them. Suddenly, things at home were very crowded, and families were looking for more storage.
There’s no indication that self-storage needs will go away any time soon. Even in times of prosperity, consumers are likely to buy more things, either for themselves or to store temporarily until they can sell certain items.
Some will even use storage units for their small business, storing inventory there.
Consistent Cash Flow
Self-storage investments are profitable investments with a high rate of return. They are a good way to make money in real estate without dealing with the hassles that are usually associated with real estate investments.
You won’t have to worry about expensive repairs or exhaustive cleaning like you would if you invested in rental properties. You are less likely to have nonpaying tenants since most self-storage units are inexpensive.
A high tenant turnover rate is not common. Facilities throughout the U.S. have an estimated occupancy rate of 90%. So you won’t have months of missing revenue in between tenants like you might in a traditional real estate investment.
A self-storage business can be easier to run than other operations. The overall overhead can be smaller. A small staff can be hired to manage a facility.
Self-storage staff can leverage smart devices and technology to further assist a self-storage operation. A good website may allow online move-ins and reservations. Automated communication methods like email and text alerts can save time and alert renters to important news.
The addition of security technology can save additional money. There are third-party agencies that will monitor your storage facility in real-time. The alternative is paying thousands each month for security guards in the hope that they will deter theft or loss.
Looking for a Self-Storage Investment?
Is investing in self-storage worth it? Absolutely. There’s no such thing as a risk-free investment, but self-storage is a better investment than you may think.
If you’re looking to get started in a storage facility investment, we make it easy. As a passive investor, you don’t have to do any of the hard work. Simple invest your money and wait for quarterly returns to your bank account.
If you’re looking to get started, contact us for help.