Is buying a storage unit a good investment?

Is buying a storage unit a good investment?

For self-storage investors, it’s a profitable, recession-proof option, with lower overhead and less hands-on management than many other commercial real estate investment opportunities. Here’s what you need to know before you get started with your self-storage business.

Can you get rich in self-storage?

If you really want to make money in self-storage, you have to put in significantly more work, and follow a different game plan entirely. Buying an established facility with good occupancy at market rents will not lead to great riches ‘ only endless concern over making the note payment.

Is buying storage units profitable?

In many cases, owning a storage facility can be a profitable business venture. Extra space is a commodity many people will pay for. Also, it is a reliable recurring income should you attract enough business.

What is a good ROI on storage units?

Strong ROI Demand is steady, with 9.4% of households currently renting self-storage units. The national average cost for all unit sizes is $87.89 per month according to SpareFoot data, suggesting the opportunities for investors are endless.

Is self-storage a good business?

Customer-friendly business According to the SSA, 92% of customers are satisfied with their self-storage. (easyStorage lies at 96% on TrustPilot at time of writing.) Last year, less than 20% of respondents said they used an online review site before booking storage.

How much do storage franchise owners make?

All of that equals out to $90,000 a year in revenue and $22,000 a year in operating expenses. That leaves $68,000 a year in net operating income.

Are storage condos a good investment?

Storage condominiums appreciate in value due to the low supply and high demand, which allows owners to capture a full return on investment and more. Extra garages and buildings on a property does not always increase the property’s value and it can actually depreciate the value of a property.

Is Self-Storage a good business?