Self-storage properties have consistently been good investments, and the industry is an easy one for new investors to get on board with. Low overhead, sizable income potential, and low costs for ongoing site management are among the reasons self-storage has appeal for investors. Nationwide, it is estimated that there are between 45,000 and 60,000 facilities. Read on to learn some of the reasons you can feel confident in self-storage as an investment.

1-Great Demand

Self-storage units are in high demand for many different reasons that go beyond the standards such as moving to a smaller home and holding onto a loved one’s possessions after they’ve passed. Businesses often find they need extra space; and using a self-storage facility is an economical way to store supplies, files, inventory, and countless other items. Storage space is often used for seasonal “toys,” such as motorcycles, boats, ATVs, and RVs. It is also a solution during remodels. Retailers sometimes use self-storage to temporarily store valuable items before shipping to their final destination. The list of ways to make good use of a self-storage unit can go on and on.

2-Low Overhead

If you compare the cost of building and maintaining self-storage units with the cost of construction and maintenance for an apartment complex or office building, it’s easy to see that self-storage units have much lower overhead. No one lives in self-storage units (hopefully!), and that means you don’t need to worry about such things as repainting and carpet-cleaning when someone moves out. Due to the expenses and low overhead associated with self-storage properties, the occupancy level needed to break even is usually about 65%, on average. With units much in demand, it’s not necessarily a big challenge to maintain a high occupancy level.

3-Self-Storage is Recession-Resistant

As the stock market and other values in society go up and down like a roller coaster, self-storage properties have continued to be recession-resistant. When great stock numbers suddenly plummet, as in recent times in connection with COVID-19, self-storage facilities are still needed.

4-Steady Customers

Even though the typical business model is to raise self-storage prices by degrees, self-storage tenants tend to stay put. Most people don’t welcome change and its demand on their time. This being a human condition, people rarely want to go through the hassle of moving their belongings from one self-storage facility to the other to save a few dollars every month.

5-Cash Flow and Tax Benefits

Investing in a self-storage facility is a way to have multiple streams of income and enjoy the cash flow. Whereas other income sources, such as the stock market, may take a dive, you could rely on self-storage to take up the slack. To help offset your income as a self-storage investor, you can use accelerated depreciation on your taxes. There are other tax advantages usually associated with a self-storage investment, as well.

Contact Weaver Realty Group

If there is a potential downside to self-storage as an investment, it is jumping into the industry without first getting acquainted with its many ins and outs. It is most beneficial to work with a broker. At Weaver Realty Group, we have been a Florida Argus Self-Storage Network Affiliate since 1999. With our experience and tremendous connections through Argus, we can provide you with all the insights you need to make the most of a self-storage investment. Whether you are buying or selling a self-storage property, we can help. Contact Weaver Realty Group by calling Josh Koerner at (904) 591-0140 today.