Best Real Estate Investment - Self Storage

When it comes to owning property, there are a number of avenues that one can take. But, despite all of the available options, one seems to stand above the rest – Self Storage Facilities. Because of their low maintenance costs (no carpets, no toilets, drywall, HVAC systems, etc.) and ability to bring in high returns, self-storage facilities have continued to grow into the best form of real estate investments over the last decade, according to studies by Bloomberg. Self storage companies, located all over the country and the world, are showing the highest total returns, paired with the third-lowest volatility, as shown by riskless return rankings. These Self-Storage facilities and their owners have continued to attract private investors, acquire properties with low debt ratios, and grow their profits considerably.

While The Self-Storage Sector’s numbers have continued to grow, they’re slated to grow at an even higher pace in 2016. Investors are learning the value that can come with a low-maintenance property. While traditional landlords have to paint, schedule carpet cleanings, etc., self storage owners can turnover a rental to a new tenant as quickly as the same day. All that’s needed is access to a broom. With high stock numbers, increased awareness about profitability and low maintenance, it was only a matter of time before other investors began to catch on.

This year alone, both rent prices and tenant numbers are scheduled to be on the rise. With fewer facilities being built, the demand – and therefore the cost – will hit an increased level, having already risen by of $2 (sitting at an average of $94 per month) in the first quarter of this year. According to Industry studies, average rents will continue to rise between 3 and 3.5 percent, and occupancy levels will grow between 1 and 3 percent. In fact, occupancy is already on the upswing, growing by 1.3 percent (now sitting at 92.4) in 2016’s 2nd quarter.

Now more than ever the self-storage industry is continuing to grow. Especially in a time of economic uncertainty, investing in Self-Storage facilities has proven to be a profitable, easily maintained source of property ownership. And as it seems, 2017 is only looking better.

Scott Meyers