The self-storage industry has developed a great reputation as an excellent place for investors to make great returns. This lucrative opportunity doesn’t require active management the way many real estate investments do.
Instead, you can take advantage of passive self-storage investing and do very well for yourself using the time-honored “buy and hold” approach.
What are the benefits of storage investing? Here are three to keep in mind.
1. The Storage Industry Does Well in All Economies
Self-storage investment has the unique advantage of being a strong choice in a variety of economic conditions.
In the recent downturn we’ve experienced due to COVID-19 in 2020, people had to make hard choices and change their living arrangements. This meant storing their goods until they could get back on their feet.
In better times, people often own more than they have room for. This results in self-storage as they look for somewhere to put excess goods they don’t want to part with.
The fact that self-storage investing does well makes it relatively low-risk with a lucrative cash flow.
2. There Are a Variety of Unit Types
Many people think of self-storage as a long row of units with roll-up doors. People use these to store personal items and household goods. However, there are a variety of other unit types as well.
For instance, drive-up units maximize accessibility by being located on driveways or internal road fronts. These types of units can be used regularly by those who need frequent access.
Climate-controlled units are great for businesses who need to store office equipment or inventory while they remodel or change business locations. There are also vehicle storage units for those who need a place to store a boat, truck, car, or motorcycle.
The variety expands the market for self-storage users, which improves the demand and makes it one of the better investment opportunities.
3. You Can Be Hands-Off With Your Investment
One of the biggest advantages of passive self-storage investing is that you don’t have to buy and maintain the storage units and business yourself. Instead, you buy a stake in an existing business that is already up and running.
These investments are profitable and provide an excellent rate of return without requiring you to manage tenants, find renters, or do the maintenance yourself. People are less likely to skip payments because the rent on a unit is fairly low, and they don’t want to lose their belongings.
Most storage operations have an occupancy rate of around 90% and low turnover rates. It’s a great way to make income passively.
Self-Storage is a Great Investment Opportunity
Self-storage investing is a great way to have a passive income that’s reliable and recession-resistant. The storage industry was profitable during the recession of 2008-10 and has also done well during COVID-19.
If you’re interested in learning more about how to have a passive investment in self-storage, we’re here to help. We have a variety of resources available that can help you successfully invest in this industry.
Contact us for more information today!