The thought of having to fix your tenants’ broken toilets and deal with rental house issues isn’t exactly appeal to you. Fortunately, being a landlord who owns rental homes isn’t your only option for making money as a real estate investor.
Rather than focusing on rental homes, you can focus on the self storage industry. In fact, according to self storage industry trends, it’s actually a wise move. Industry statistics show that the demand for self-storage units remained the same even during the COVID-19 pandemic. And the average rent increased from $1.14 in 2019 to $1.18 in 2020 per square foot.
So, how exactly does the self-storage industry work? Let’s take a quick look at the self-storage industry, including what makes it tick and what is causing the recent boom in interest from investors.
Let’s jump in!
Benefits of Self-Storage Investing
The self storage industry continues to attract investors for numerous reasons. For one, it generates cash flow consistently. After all, your clients will likely pay you each month for your storage units.
In addition, the rate of return for storage units is generally high, as the operation costs are low. Plus, you likely won’t have to deal with nonpaying tenants, as most units are affordable for the average tenant.
Note that large metro areas are usually the best places to invest in self-storage. That’s because they often have unmet needs in this area.
Examples of cities include Des Moines, Iowa. In addition, you might want to target Huntsville and Birmingham in Alabama.
Consider also investing in self-storage units in Chattanooga, Tennessee, and Tampa, Florida.
Factors Driving Demand for Self-Storage Rentals
One of the biggest reasons why self-storage remains in demand among consumers is that many families are accumulating an increased number of material possessions. This is especially an issue in urban areas, where living spaces are smaller and are becoming increasingly expensive.
In addition, as baby boomers start to downsize, they are turning to self-storage to accommodate their many belongings.
Self-storage is also drawing business owners who have shifted to remote working models. Rather than paying for office space, they are using less expensive self-storage to house their office equipment while their workers navigate the transition to working from home.
Self Storage Industry Opportunities
As you seek to break into the self-storage industry, note that millennials are increasingly turning to self storage. To attract them, it’s paramount that you use technology — like apps, smartphones, and mobile websites that are responsive.
Consider introducing innovative self-service kiosks and online bookings/payments. Even virtual tours can give you a competitive advantage in the self-storage space.
How We Can Help
At Self Storage Investing, we take pride in helping investors to grow their net worth. With our help, you can do this without having to worry about maintaining rental homes.
We’ve managed to build a storage portfolio of more than a couple million square feet. So, we know how to help you to do the same in the self storage industry.
However, in addition to teaching you how to invest in self-storage units, we provide passive storage investing opportunities.
Contact us today learn more about how we can help you to take your investing business to the next level in 2021 and beyond.