There are currently over 50,000 self-storage facilities scattered across the United States with more popping up all the time with demand on the rise as the COVID-19 pandemic continues. Everyone knows that investing in real estate is a relatively safe investment, but what about investing in a storage facility?
There are risks involved in any investment strategy and storage investment is no exception. Like everything in life, it is best to look before you leap.
Storage investing is less hassle than traditional real estate investing and yet has huge ROI (return on investment) potential. Keep reading, and we will give you a quick primer on why building a storage unit business is a good investment opportunity.
Why Invest in Self-Storage Facilities?
Grab a pen because you are going to want to write down this mother of all investment tips: invest in residual income streams with low cost and low-risk returns. That is self-storage investment in a nutshell. Let us explain.
Cash Flow Business
Creating cash flow with real estate involves renting your property to tenants. Usually, this involves a lot of risk on the landlord’s side.
When a tenant doesn’t pay their rent, eviction proceedings can take months and cost thousands in legal fees. There are so many other factors such as finding renters, cleaning and repairing the property between tenants, and many more that cut into your returns.
Most of these issues don’t apply to storage units. Rental agreements are very straight forward and if the rental payment is not received by a certain time, the contents of the unit are either removed or auctioned. The unit is then immediately available to rent again.
Low Operational Cost
The self-storage business model has very little overhead. Your storage unit renters handle the moving in and out of their things and have their own lock and key. Many storage facilities only have security cameras and don’t even employ on-site staff or utilities to run up costs.
More Renters Equal More Income Streams
Keeping operational costs at a minimum means even without many renters you will still make a profit. With renting a house, you may only have one tenant to rely on. But with storage investing you will have dozens are even hundreds of units and multiple renters.
If you lose a few at a time, you will still have rent coming in from your other renters.
Plenty of Room to Expand Services
Storage unit facilities often start with the basic self-storage business model but later diversify and grow.
There are many services to sell directly connected to the storage needs market. Some potential services you could easily beef up your self-storage business plan with include:
- Moving services
- Shipping services
- Lot storage of vehicles and boats
- Personal property insurance
- Auction services
A storage unit is a fairly simple and low-cost building so as long as you have more land to build on it is relatively easy and cheap to add more storage units to your storage facility.
A Storage Unit Full of Cash
Self-storage facilities are an excellent investment with many advantages over other types of real estate investing, but that doesn’t mean you don’t need to do your homework and learn the business’s best practices. That’s where we come in.
Self Storage Investing™ will help you get started, show you the ropes, and share with you great opportunities to partner with us on big deals. Why wait a moment longer? Get started today and your biggest problem might become where to store all that money.