June 1, 2022
I have spoken to a number of individuals over the last couple of years that have made the switch or are currently in the process of making the switch from single family or multi-family residential rentals over to self-storage. So, it prompted me to write a quick blog listing some of the reasons why they are making this move in their investment portfolio. Take a look below for a few of the reasons and let me know if you have anything to add!
- Ease of Management – If you are an owner/manager this is a big reason to make the switch. Without tenants living inside of the units there are a lot less issues. There are not too many midnight phone calls from tenants needing their AC fixed or letting you know about a small leak under the upstairs bathroom sink that started 2 months ago (they failed to report) that has now busted into a raging flow of water pouring into their kitchen. Ease of management extends beyond just repairs and maintenance but for time purposes we will keep it here.
- Cost – The cost per unit for both upfront construction/acquisition as well as operating expenses is far less allowing investors with less upfront capital to make the switch.
- Risk Reduction – Instead of purchasing a handle full of residential units, you can have a hundred or more storage units providing a larger tenant base and less financial loss when one or two move out due to unforeseen circumstances.
- Recession Resistant – Storage has become a proven asset that is not only a performer during good times but also in down times. During the last recession (Covid), the industry saw rates rise by 50% or more from Mid-2020 to Mid-2021 in some areas. Owners were struggling to keep occupancy below 100% by raising their rates.
Those are just a few of the reasons investors have been making the switch to storage. Maybe you have been thinking about making the switch yourself. Call us today to discuss what we can do for you!
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