If you look at the numbers, there’s little doubt that you can make money investing in self-storage. However, many people are hesitant because they don’t know how much work you have to do. For busy professionals, putting too much work into an investment is never a good thing.
In this post, we’re going to discuss the benefits of a self-storage investment by telling you 5 reasons why self-storage investors are on the right track. If you’re close to making an investment in self-storage, but need that extra push, this one is for you.
1. True Passive Income
When you invest in a self-storage business, it’s the very definition of passive income. Self-storage investors are on the right track because there are minimal management chores, making it the perfect sector for busy professionals to invest in.
The most you’ll have to do is give each unit a quick clean after a tenant moves out, which you could hire a property manager to take care of if you don’t have the time. Tenants won’t expect anything more than an empty room to put their belongings in.
Self-storage has proven to be as close to recession-proof as any industry can get. When the economy is on an upswing, then homeownership tends to rise, which drives the need for self-storage.
Conversely, in economic downturns, as people are selling their homes and downsizing to more affordable properties, the need for self-storage is still there.
3. Fragmented Market
One of the perks that a lot of self-storage investors end up seeing is that the market is very fragmented; small, private owners control around 70% of the self-storage market. You’ll never have to worry about getting around market power players and the low-entry barrier gives investors of all backgrounds the chance to get in on as many self-storage properties as they can afford.
4. Fluid Cash Flow
As with other types of property ownership, self-storage units are rented out on a month-to-month basis. This allows you to change rental prices as the market goes up or down. Unlike apartments or business spaces, tenants aren’t likely to care much about slight increases in monthly rental costs.
5. High Demand
As the world continues its shift towards e-commerce, people are accumulating possessions like never before, which has and will bode well for self-storage investors. The covid-19 pandemic has seen online ordering skyrocket even more and people are always going to need extra space to store their items, so there’s no sign of a drop in demand for self-storage.
Don’t Be Jealous of Self-Storage Investors, Become One
It’s clear to see that all self-storage investors are on the right track with their investments. If you don’t want to be left out of this financial goldmine, then put some of your hard-earned money into self-storage and watch the returns come in.
For more tools for prospective and current self-storage investors, come back and visit us again at Self-Storage Investing. Our mentorship programs and live events are aimed at helping people invest their money the right way into an industry that’s only just beginning to thrive. Check out our website for some free guides and contact us to learn more about how we can help you with your investment.