Benefits of investing in self-storage property
We are sure you often wonder where to keep all the stuff in your home, the space always feels less. Well, then you can consider an offline storage unit for that. Self-storage facilities are a booming sector because there is a growing number of people who need extra space to store their items and hence it makes for a good investment avenue.
What makes self-storage such a promising investment option is that irrespective of the health of the economy, the need for storage units will always exist. During an economic boom, people buy more and hence need more space to store it. During an economic downturn, people either downsize their homes or relocate and the need for storage spaces continues being there.
While investing in CRE requires considerable expertise, anyone with additional funds can invest in self-storage units and generate passive income.
ADVANTAGES OF INVESTING IN SELF-STORAGE UNITS-
Low costs- Self-storage requires less maintenance as compared to other types of real estate and hence less overhead and operating costs are involved. It also requires less personnel to operate it, therefore less employees need to be paid.
Short term leases- A typical self-storage unit lease is for 30 days as opposed to tenant leases with apartments, office buildings and shopping centers. The advantage of this is that you can raise rents more often and it also becomes easier to vacate the tenant if he is undesirable unlike fighting legal battles in the longer term lease.
Easier to set it up for next tenant- Since there are no carpets to get cleaned or need to get the walls painted or get the refrigerators cleaned, etc.- all of which are time intensive ordeals, self-storage units have a faster turnaround time for the next customer.
No problem of vacant units- Since a self-storage facility has a large number of units, a few of them being vacated do not hit the pocket of the investor hard. 10 out of 100 units being vacant wouldn’t really bother the investor much.
The high demand- No other type of real estate has such an extensive demand as do the self-storage facilities. The use of self-storage for both individuals and businesses is endless irrespective of the economic environment, therefore well-operated self-storage is always in demand.
High Depreciation- Interior partitions are depreciated over a shorter period of time. This high depreciation investment protects the income from taxes on other investments.