18 months into the Pandemic, self-storage is now a GREAT investment!

Self-storage is continuing to prove that it is one of the most stable and best assets out there.

According to statistics, the first quarter of 2021 revenue increased 9% over 2020 to a record $2.4 Million and occupancy levels continued to rise. Self-storage owners know that this is a great investment because people always need storage.

When the economy is bad, people are downsizing, and they need to store their belongings. When the economy is good, people, are moving and upgrading; they are in transition, so they need to store. There is always a need for self-storage facilities.

Another reason that self-storage does so well is that there are not a lot of expenses associated with self-storage. Your normal operating expenses include your loan for your purchase price for your facility, your property taxes. Your Operating costs will run between $2 and $4 per square foot with utilities, site upkeep and marketing consisting of the majority of these expenses. There are other operating costs like credit card fees, technology updates and insurance. Are you going to hire a property manager?

Prior to the pandemic, there was some concern that there was overbuilding in some areas so before investing in a self-storage facility, you want to make sure that you research your area. The best way to do your research is with a feasibility study. This report will let you know if your area is oversaturated or if it is a good place to invest.

Every market will ebb and flow but there seems to be a constant in the real estate market and that is self-storage. It is inexpensive to operate. The facilities are easy to maintain, and the tenants are easier to manage than other types of rental properties. As technology continues to improve, the management of self-storage facilities will continue to get easier and easier.

Self-storage is the best form of investment out there even during a pandemic. As always, happy investing.