22 Apr 2024
Self storage can be a fantastic investment.
It’s real estate, which is always recommended. It’s not as complicated or legally tricky as residential housing. And, famously, self storage is recession-proof!
At least, that’s the theory.
Self storage isn’t easy money now, if it ever was. Real estate investment trusts (REITs) have surged in the industry, scooping up the low-hanging fruit. Competition is fierce, and you can’t simply drop your investment in some steel boxes and hope your money grows.
But with the right information and the right plan, self storage can still be a fantastic way to invest.
In this Beginners Guide to Self Storage Investing, we’ll go over everything you need to know to get started investing in self storage, whether you’re growing from one facility or stepping into the industry for the first time.
Why invest in Self Storage?
Storage is a massive industry, and it’s only getting bigger.
As of 2023, over 10% of American households use or have used self storage, and the percentage is rising. More and more people are learning how easy storage is to use and how inexpensive it is relative to adding more residential storage space.
Boat and RV storage did well over the last few years, too, as people look for ways to house their new toys that doesn’t annoy their neighbors.
Storage is an attractive industry for investors because:
The industry as a whole is expected to grow over 5% in 5 years, and individual facilities can do even better than that!
But you have to know what you’re doing. Our Beginner’s Guide to Self Storage Investing is a great place to get started.
We’ll cover the industry basics, including:
StoragePug provides self storage marketing and self storage websites for the industry, and we’ve worked with thousands of clients to help grow their businesses.
This is the first decision you’ll have to make when you start digging into self storage - are you going to buy an existing facility or build a brand-new one?
Both of these approaches can be a great way to start growing your money with self storage, but they also have some drawbacks. Overall, buying is safer, but building has higher potential.
Just like in other types of real estate investment, new construction is going to be worth more than one that’s been collecting damage for ten years. A new construction project is also going to cost you a lot more on average.
Choosing a location for your storage facility (whether constructing a new one or buying an existing one) is a balancing act.
Originally posted on the StoragePug blog - Beginner's Guide to Self Storage Investing
Get in touch with us at StoragePug to learn more about our digital marketing services for self storage — or to schedule a demo.
StoragePug is a modern marketing company for self storage. We create intelligent marketing websites that allow you to rent units & take payments through your facilities' website.
David Austin is SEO Content Manager for StoragePug, a self storage website design company working out of Knoxville, TN. To reach out to David, email him at david@storagepug.com.
