Storage units can be a lucrative option for those looking to build property investments. Public Storage recently bought out ezStorage for a total of 1.8 billion dollars.
Investors are taking advantage of the rise in storage unit profitability. This guide will give you all the answers to the question: are storage units profitable?
How a Storage Unit Works
A Storage Unit is a space that you can rent on a month-to-month basis. These spaces typically range from five to five to a ten by thirty in length.
Customers can access this storage unit space within business hours. The storage units can be run by a team or they can operate under a sole owner.
Certain locations may contain twenty-four-hour gate access by card or access code. These facilities are kept under continual surveillance by a security team or by security systems.
Certain facilities can also contain control the climate of the units. Owners can protect their units from property damage as well.
Owning a Storage Business
There are a lot of benefits to owning a self-storage facility. There are several storage units across the US. We hold around 50,000 storage unit facilities in America.
Due to the pandemic, there is a rise in foreclosures and a mass exodus from major cities. This is causing an uptick in the demand for storage spaces.
Understanding the demand for units in a given area is important. Places such as New York City are experiencing many move-outs. These tenants wish to return to the city after the pandemic.
So, they are most likely going to place these items temporarily in a storage unit. In these urban environments, it’s difficult to move items in and out of the city.
An active manager can make a difference when it comes to building a storage unit investment. They will commit to marketing to Real Estate companies and bigger storage businesses. They will also provide social media or websites to promote their goods and services.
Storage units with affordable pricing and availability. Rental units require managers to understand their relationship between themselves and their tenants.
Different units require different pricing. Whether it’s a multi-family, office, self-storage, or retail unit. It is not uncommon for customers to pay a similar amount or more to storage compartments in apartments.
The average unit can range anywhere from fifty dollars to one hundred dollars. Managers must also take into account the cost of upkeep when handling a facility.
Alternate real estate investments can be costly. These investments require many other startup costs, and various taxes on properties can decrease this output.
Are Storage Units Profitable?
Storage facilities can cut the startup costs of investments in half. Real Estate turnover can be a huge hassle and sink investors into the negative due to a volatile market.
So, to answer the question: Are storage units profitable? The answer is yes. The demand is high and there are still available opportunities to expand these facilities.