Self-Storage Investing for Beginners
If you’re wondering how to start investing in self-storage, you’ll want to start with research so you can make the most of the opportunity. We’ve put this guide together to help you.
What Is Self-Storage Investing?
This form of commercial real estate investment lets you put your resources into self-storage facilities, where you can rent storage units to individuals or businesses. Individuals may rent storage units long-term when they have too many items for their homes or short-term if they are moving. Businesses may use self-storage to store extra supplies or inventory.
Why Invest in Self-Storage?
There are many benefits to self-storage investment:
- It’s lucrative: Startup costs for self-storage are lower compared to other commercial real estate investments. You don’t need to invest in management costs or frequent aesthetic updates. These factors can translate to low operating costs and a good profit margin.
- The risk is low: Lower costs help to lower your risk. Additionally, people always need storage, meaning you don’t need to worry about a recession wiping out your business. When customers leave, more renters will be there to take their place.
- Demand is high: Demand for self-storage is only growing. Small businesses often need storage, as do short-term renters, digital nomads, students, and many others.
Ways to Invest in Self-Storage
One of the benefits of self-storage investment is that there are many ways to get started:
- Buy a self-storage business: As an owner, you can make money as the facility turns a profit. Get started by purchasing a storage unit facility or building one. You can go the independent route or buy into a larger franchise.
- Invest in a real estate Investment trust (REIT): You can start investing with less than you would need to buy an entire self-storage facility. All you need to do is choose a self-storage REIT that has a good chance of profiting and then make money through dividends or capital gains.
- Buy shares: The public stock exchange has shares of self-storage companies you can buy. You can make a profit by selling your shares as they increase in value or by getting dividends, which companies pay to shareholders when they profit.
Are You Ready to Get Started?
If you’re interested in self-storage investing, Investment Real Estate (IRE) has white papers and resources to help. We make it easy to buy and sell self-storage facilities. We also offer management and construction services. To learn more, contact IRE today.