As a brokerage dedicated to self-storage, we love the self-storage industry. It’s important to know why this industry is strong, and why you should invest in a self-storage business.
Our team of professionals are experts in self-storage. From acquisition to new construction, we are prepared to walk our clients through the process every step of the way.
- Self-storage provides passive income.
- Self-storage weathers inflation easily.
- Self-storage is recession-proof.
Self-storage provides passive income.
Self-storage is a solid business model providing passive income. Once a tenant has contracted for a unit, the sale is already made and the rent will be collected via monthly charge. The monthly renewals are automatic, and it is easy to lock a tenant out upon failure to pay. As self-storage businesses adopt newer technology, access to a unit is available 24/7 and many businesses feature smart locks that are accessible through an app. Smart locks make it easy to collect rent and keep track of traffic on the property.
Self-storage handles inflation easily.
Most self-storage in the United States easily maintains an occupancy of 92%. As rates change, the price charged for rent can change as well. While an owner may decide to raise rates every 6-9 months for loyal tenants, the fact remains that rates can change frequently. As a business owner, determining the best time frame to change rates will be your decision. In theory, an owner can raise rates every single month if necessary.
Self-storage is recession-proof.
In today’s economy, investors prefer safer options to build their wealth. Self-storage is recession-proof in several ways. First, many individuals need self-storage during a recession. When it becomes necessary to downsize, consumers need a place to store their belongings that they aren’t ready to unload. Even businesses find the need for storage during times of recession. Second, self-storage also has relatively low operational costs. Many self-storage businesses do not need a manager on site now that contactless options are more widely preferred.
A concern for every self-storage owner will be “What if someone moves out?” The fact is that there are plenty of people in need of storage so a unit will not likely be vacant for long. The most helpful factor in business growth is using free marketing platforms like Google Business Profile, Facebook, and Instagram.
Google Business Profile is the most beneficial platform as it is the most common search engine consumers use to find what they need. Keeping information about the business up to date on the GBP is essential. Posting regular updates is also necessary and builds trust with consumers who are considering your business. Google Reviews are also important. Many consumers select a business based on Google Reviews alone.
Sharing the same Google Business updates to Facebook and Instagram is a tool to build a growing community of engaged customers. It’s necessary to capture consumer interest when they sign a lease by posting a QR code that will enable them to quickly and easily like your Facebook page, leave a Google Review, or follow you on Instagram. Sharing necessary information on those platforms keeps them engaged.
We love this article from Forbes Magazine on why self-storage is the next best investment.
Our team of experts at Coastal Storage is ready to help you find your next investment. Whether you are looking to own and operate your self-storage, or you are looking to add to your portfolio, call us today at 904-591-0140 to take the next step.