We’ve all seen self-storage unit facilities on the side of the road. And chances are, we have needed to use one at one time or another in our life. A move, inheriting more stuff than we can store, or simply living in a small space can lead to needing a self-storage unit.
What we might not realize is that these useful and relatively inexpensive-to-rent storage units generate over $20 billion dollars in revenue each year.
$20 billion.
That makes self-storage unit facilities an especially attractive investment for real estate investors. With nearly 10 percent of American households using a storage facility every year, self storage is gaining ground as a desirable asset.
And while owning a self-storage facility outright would entail a lot of research, business management skills, and hard work, there are much easier ways to reap the benefits of investing in self-storage units without all the toil.
There are real estate investment funds that, through careful market research, choose to build climate-controlled, multi-story, self-storage units in areas that will provide a high return on their investment. These properties are also professionally managed so that individual investors do not have to be involved in the day-to-day headaches of owning the facility.
If you choose to invest in a self-storage facility through a real estate investment fund, your monetary investment is aggregated with those of other investors, allowing you access to invest in a multi-million dollar property and to benefit from its returns without needing to invest millions of dollars yourself or to manage the property.
You are then able to collect passive returns, the goal of many savvy real estate investors.
And one of the most attractive reasons to invest in self-storage facilities is that the industry has a history of being recession-proof. When hard times hit and people are forced to downsize, they are likely to need a storage unit, and with lower overhead, and less hands-on management needed than other real estate investments, it’s an overall safe investment, regardless of the state of the economy.
During good economic times, people use self-storage for product warehousing for small businesses or to store recreational items for their homes that they don’t use every day.
Another reason these facilities make a good financial investment is that self-storage facilities don’t tend to have long leases, making it easy to raise rents more frequently. This also allows for a consistent cash flow even with frequent lease turnovers.
Now is the time to invest in self-storage facilities as the industry continues to grow.
If you are interested in learning more about how you can collect passive income through investing in self-storage facilities and other properties through real estate investment funds, contact Oasis Realty Investment Group.
