Every investment is an opportunity to grow your wealth, but only if you choose wisely. There are numerous real estate options to choose from, and recent years have seen one industry rise as a safe, lucrative investment for property buyers — self storage. Investing in storage properties is one of the best ways to earn passive income, but why is self-storage lucrative?
What Makes Self Storage a Good Market to Enter?
The self-storage market is a consistent, safe, hassle-free source of income. Self storage is always in high demand, even when the economy struggles.
Consider your customers’ consumption habits. People are always buying new things and are reluctant to part with old treasures. Customers make room in their homes or businesses for new goods by renting self-storage units for months or years at a time, resulting in consistent revenue for property owners.
What’s more, state and federal laws ensure storage facility owners will always get their money by permitting lockouts within five to six days of a missed payment. Owners can also sell tenant’s goods after around 56 days of delinquency. Better yet, self-storage leases are short, giving you an easy out with bad tenants.
How Does Self Storage Compare to Other Investments?
To start, self-storage facilities are less expensive to operate and maintain than commercial or residential properties. At the same time, storage facilities feature flexible construction with interchangeability in mind. They also offer tax security as revenue increases.
Another advantage is that you’ll experience less tenant hassle than you would owning a residential building. Emotions can complicate business for landlords, but renting a self-storage unit is a far less sensitive issue. Plus, shorter leases and lower rent allow owners to increase rates more frequently without impacting tenants as much. A 10% increase on $1,000 is far more significant than hiking a $150 monthly storage fee up by the same margin.
Finally, self-storage revenue is more consistent than what investors get from their commercial properties. Businesses come and go, but customers always need a reliable place to store their excess belongings.
How Do I Find Lucrative Self-Storage Properties?
If you want to get into the self-storage industry, work with an experienced brokerage firm like Investment Real Estate. We’ll help you find a favorable deal on a valuable property. We also provide helpful tips and industry insight on our website, so browse the IRE blog to grow as a smart investor.