If there is one industry that has benefitted from the economic trends of the past year, it is the self storage industry. Demand for self-storage facilities has grown at an annualized rate of more than 134% this year, as people and businesses look for more space. People want somewhere to put old belongings and make way for the new things they are buying in the current shopping boom.
People might want somewhere to store their possessions while they make a significant move or life changes. Businesses need more storage space as they continue to stockpile goods amid global shortages. That’s why investing in self-storage units is a solid business strategy right now. However, becoming a successful self-storage investor is often easier said than done. Read on to find out the essential self-storage information you need to know before you get started.
1. Self Storage Investment is Not Totally Effortless
When receiving information about self-storage, you might often hear that it is an effortless form of real estate investing. After all, there are no tenants, and no need to maintain and clean the unit on a regular basis.
However, you do have duties and tasks to perform as an investor. You need to maintain the facility, stay on top of your paperwork, and manage the needs of those who are renting the unit, all of which involve time and effort.
2. The Size of Your Units Matters
When investing in self-storage units, it is crucial to remember that size does matter. People always want more space rather than less. This means that larger storage units always go for a higher rental premium than smaller units. In addition, it is more likely that a customer will rent a larger unit for longer and that demand will stay more stable than with smaller units.
3. Demand is Predicted to Continue Surging
There are many factors unique to the current economy that is helping to drive demand for self-storage units. However, this does not mean that demand will end anytime soon. Even without factoring in the pandemic-era economy, demand for self-storage units is expected to grow at around 5% per year for the next decade, thanks to increased awareness of the benefits of self-storage facilities.
4. Location, Location, Location
You might think that location does not matter when it comes to self-storage units. However, this is a misconception. After all, people want to get to their self-storage unit easily.
This means units in urban areas or near more affluent suburbs are often better investments. In addition, more visible storage facilities near a major road can often attract a greater number of customers. It is one of the most important self-storage facts that, actually, location does matter.
Begin Your Investment Journey Today
If you are ready to begin your journey and start investing in self storage facilities today, you have come to the right place. We have years of experience providing top-tier insights and resources to successful first-time investors. Give our friendly team a call today to learn more.