Sometimes, people need a little extra space. Whether it’s a house move or inherited a house full of goods, self-storage is a great solution.
But what if you’ve got some money to invest? Investing in self-storage may seem intimidating at first. But with the right knowledge and resources, it can be beneficial to you. Here are 5 must-know tips for investing in self-storage.
1. Self-Storage Investing Is Win-Win
Traditional investments tend to copy the stock markets and average wealth. As the stock market crashes, the cost of living increases, and people lose their jobs. This causes investments to drop. Also, safe havens such as gold this time go up as people swap their money into appreciating assets.
But with self-storage, you make money in both markets. When houses are high in demand, many people will store their items while moving home. This can also be a temporary measure if they take a new job in the city.
But in a recession, people use self-storage when they have to sell their homes and downsize. Let’s not forget that divorce rates are at an all-time high. So many people store their goods in storage while transitioning to their next home.
2. Low Overheads in Self Storage Investments
The self-storage space itself is cheap, and the costs involved in running it are low. There aren’t many costs other than a small monthly fee for letting the space. And, you only have to worry about the annual insurance premium, which is low.
After all, you’re not running a warehouse or retail store. It’s a storage space that people rent out to store their goods. And the location and facilities are simple. This means there aren’t many high maintenance costs involved beyond security.
3. Low Maintenance Investing Opportunity
The tenant-landlord relationship is a good one for business owners too. You don’t need to be present at the building 24/7 to make sure your tenants are paying their rent, but you receive a steady income from them a month to month. Also, there’s not much hard work involved in keeping the storage units stacked with goods.
4. Lower Cost of Entry Than Real Estate Investing
Self-storage investing is a great option if you feel like you lack the resources to invest in other ventures. You don’t need a lot of money upfront to start, because the costs involved in managing self-storage aren’t high. In fact, it’s only the annual insurance premium that requires payment each year.
5. Low Risk When You Invest in Self Storage
You don’t have to be an expert in finance or business to invest in self-storage. All you need to know is how storage space works and how to make money from it.
You can take a step-by-step approach, as when you first start investing, there’s a lot of trial and error involved in the beginning. But with time you become more proficient at self-storage investing and get better results.
Investing in Self-Storage Is Stress-Free
If you didn’t think about investing in self-storage beforehand, the chances are you are now. With low entry-level and low-maintenance costs, it’s a no-brainer for anyone with a bit of spare money to store away and generate an income with minimal effort.
If you’re interested in investing in your future, contact us today and we’ll get you on your way to financial freedom!