How to Generate Passive Income With Self-Storage
Passive income means eliminating the process of exchanging your time for your money. At a traditional job, your earning potential is limited by the number of hours you work. With passive income, you set up investments or an earning system and make money with limited additional effort.
You can earn passive income in many ways. Self-storage is a great place to start.
Does Self-Storage Generate Passive Income?
Self-storage offers many benefits that make it an ideal way to begin creating passive income:
- It’s lucrative: With low operating costs and high earning potential, self-storage allows you to build a nice passive income with less of your investment swallowed up in management.
- The risk is low: People always need storage space, which means your self-storage passive income can continue in good and bad economic times.
- The demand is high: From college students needing a place to store their items during the summer to small businesses needing to store extra inventory, there will always be someone interested in renting a storage unit.
- Self-storage requires little maintenance: You don’t have to update storage units the way you might with residential or commercial rentals. Beyond installing a security system and making sure the units are clean and ready for storage, you don’t need much maintenance.
How to Generate Passive Income With Self-Storage Investing
There are two main ways to generate passive income with self-storage investing, and you can even combine them to earn more:
- Own self-storage facilities: You can buy or build self-storage facilities as an independent or franchise owner and earn passive income every time someone rents a unit. If you’re an independent owner, you can outsource management duties to make your income even more passive.
- Invest in self-storage companies: You can buy shares in self-storage companies or invest in a real estate investment trust (REIT). In both cases, you can make passive income by selling assets — or you can generate income through dividends, which companies pay to shareholders when profits are good.
Are You Interested in Passive Income?
Investment Real Estate (IRE) has management services to ensure your passive income stays passive. We take care of management so you can focus on earning. We also make it easy to buy and sell self-storage facilities online, allowing you to set up your income streams. Talk to the IRE team today to learn more.