Self Storage units as investments

[Tony L.]

Anyone investing or has invested in self storage units? If so, WHY?

[Jon Holdman]

You need a good locatiion with good demand and limited ability to build more. They're cheap to build, so if the demand is there, someone will build another. Minimal utilities, low (in theory) expenses, no toilets. You need a full time onsite manager. If someone calls and nobody answers, they go to the next listing in the phone book. Since the tenants don't talk to each other like in apartments, you can experiment with pricing more easily. Need a good mix of units that's aligned with local demand. If a tenant doesn't pay, you overlock their unit. A month later you cut the lock and auction their stuff.