There are several investments in real estate. As an investor, your best option depends on the amount you invest as well as your level of risk tolerance.
Diversification of your investment portfolio and assets offers you the opportunity to invest in other profitable markets, such as self-storage.
This is the best time to join the self-storage industry because it’s currently going through a big boom.
According to experts, self-storage properties will keep growing in terms of their CAGR (compound annual growth rate) and ROI (return on investment) for many years to come.
Also, it’s easier to get into the self-storage industry with the aid of SBA (Small Business Association) loans. Compared to other residential services, self-storage facilities are more desirable because they don’t require toilets, trash, or tenants.
3 Reasons Why Self-storage is a Choice Investment
The following are three advantages of investing in self-storage in 2022.
Easy to maintain
With self-storage properties, maintenance is lower than most real estate investments. You can also seek help from those who have experience in this industry. They’ll assist you in navigating the specialized aspects of self-storage as well as help manage the daily operations they require.
Also, there are several modern software programs. They make the day-to-day running of your facilities easier. The best part is that you can use them from anywhere. All you may need are some specific surveillance systems, the ability to sign documents online, and a few kiosks.
With the help of modern self-storage technologies, you can do remote check-ins. You won’t necessarily require the full service of a property manager.
More space for expansion
Do you know that you may offer ancillary products or services with your self-storage facility? Yes, you can. This would be an add-on purchase or bonus while buying more products or services.
You can provide boxes and locks, then add other items related to transportation.
Some nice add-ons for clients may include furniture slides, dust covers, trailer lock kits, and lifting straps. This is something they are prone to forgetting.
With the ancillary products and services, there is an opportunity for another good source of income. Remember, offering more services means more people will be renting.
Providing adequate training for managers is also essential. They need to understand how to sell those products and services.
Also, subtly educate the customers. There is no need to force the products on them. Operators of self-storage facilities must constantly come up with more appealing add-on products and services to beat their competitors.
Great return on investment
This is one of the key reasons why you need to invest in the self-storage industry in 2022. Self-storage is unarguably recession-resistant. Experts predicted the industry would have a more than 130% CAGR between 2022 and 2025. It’s already on the right track so far. This alone attracts more investors.
Again, the demand for self-storage keeps increasing. Today, about nine percent of households rent self-storage units. According to data from SpareFoot, the national average cost for every unit size is around $88 monthly. The opportunities for investors here are numerous! For years to come, the growth rates will stay steady.
The self-storage industry has endless opportunities for investors. Its low maintenance is one of the reasons most real estate players keep coming in. Finally, invest in self-storage units to secure your property.