Why We Like Self Storage?
When it comes to real estate, investors should consider self-storage. The self-storage market is a simpler method to generate a return on investment because there are no tenants or early-morning calls about clogged toilets, leaky faucets, and other tenant complaints.
Individuals can use self-storage to store their belongings while they move, go to school, stage their home, travel, family separation, or just need extra space to store their items. Self-storage is a low-maintenance solution for investors to make profits on their investments. It’s perfect for new investors who don’t want to spend hours managing properties, and it’s fantastic for seasoned investors looking to diversify.
While we could talk about Self Storage for days, here are five of our many beliefs about why at Nine Doors Down, we invest in this asset class.
An appealing return on investment: This industry’s return on investment and compound annual growth rate are both predicted to increase over the next five years, implying that it delivers excellent profits. Since 2009, self-storage has outperformed retail, office, apartment, and industrial spaces.
High demand: Approximately 40% of households now have a storage unit. With the current surge in interest in real estate and travel, demand for self-storage is anticipated to rise as well.
Recession Resistant: Self-storage is constantly in demand, regardless of the economy. When the economy is thriving, people take longer vacations and relocate, necessitating the usage of self-storage. People may return to school or downsize during a downturn, which means they may need self-storage as they modify their housing conditions.
Low-cost maintenance: Self-storage units don’t require much upkeep or supervision. Property management and even on-site visits can be reduced using software, kiosks, surveillance systems, and remote sign-ins. You only have to keep the units clean and updated with self-storage, so you don’t have to bother about things like décor or office or apartment finishes.
Easy Eviction Process: Self-storage is the only real estate investment where you may lock tenants out if they don’t pay, usually within 5-10 days. In most places, you have this privilege as long as you obey the self-storage legislation.
You cannot grasp this very crucial characteristic of self-storage unless you have some past experience with apartment and residential rents. Owners may also leverage the power of the tenants’ belongings in order to collect rent, or their belongings may be sold and auctioned.
