Real Estate Investments: Self Storage vs. Rental Property
To be successful in real estate, you must choose an investment with a high potential for return. It can feel like a leap of faith to invest in the commercial market rather than residential, but self-storage facilities are a strong competitor. When you compare self-storage versus rental property investments, you’ll see how these facilities are more stable, reliable and potentially more lucrative than single-family homes.
Self storage has an excellent return on investment and consistent demand among American homeowners. Even in 2020, when the housing market declined, vacancy rates in self storage spaces remained consistent with previous years. At Investment Real Estate, we’ve put together some key differences to compare self storage and apartment or home investments.
Comparing Self Storage and Residential Investments
Commercial investments will always differ from residential properties. Investing in storage units versus single-family rentals, for example, may seem like two separate markets. The residential real estate market often attracts investors for the following reasons:
- Personal housing
- House flipping
- Tax advantages
Self storage property is a generally untapped market that could change how you invest in real estate. Some prefer residential property investments, but commercial properties like storage facilities can have even greater gross revenue.
Investors choose self storage properties for these additional benefits:
- Predictable income
- Growth potential
- Simple evictions
- Easy property management
- Hassle-free utilities
- Low operating cost
- Flexible lease terms
- Quick turnaround of tenants
With a self storage facility, you’ll never have to deal with middle-of-the-night plumbing calls, complicated eviction processes or hiring a property management team. Plus, losing a storage unit tenant has a much smaller impact than losing a residential tenant. Enjoy the flexibility and stability of self storage investments!
Is Self Storage a Good Commercial Real Estate Investment?
Whether you’re adding to your portfolio or just getting started, self storage real estate is a worthwhile investment. Many Americans have at least one storage unit and remain loyal to their facility for years. In an economy where the housing market is constantly ebbing and flowing, commercial units like storage facilities can be a predictable and rewarding investment.
Invest in Self Storage for Excellent Returns
Self storage facilities can help your investment income soar. With IRE, you can grow your portfolio and choose the best self storage opportunity. As your partner in the process, we help you evaluate lucrative properties and create strategic financial plans before you purchase. Have greater confidence in your investment with IRE on your side.
Discuss your self storage investment options with our expert team located throughout the Northeast. Reach out online to get started!