Self Storage as an Investment

by Schmitt Co

Are you considering self storage as an investment? Self storage is a rapidly growing market worldwide but even more so in the United States. The United States has over fifty thousand self storage locations, with more being opened at a high rate. This can be attributed to various social factors, including increasing divorce rates (which call for storing personal belongings), an increasing home improvement market (which requires more storage for materials and tools), and an increasing rate of home loss.

As experts in the self storage management market we look at hundreds of factors when we consider marketing or managing a storage facility. As a potential investor, you should look at a few key points when considering self storage as an investment. Security, cleanliness, climate control, and complimentary services should be your main focus. Most self storage facilities provide rolling metal doors, with entry-controls ranging from basic lock and key to thumbprint scanners. Security guards are often employed at upscale self storage units, and cameras are a common sight as well. Wire mesh or chain link ceilings provide significantly more security than do dropped ceilings.

Climate control is often overlooked but a huge selling point to some potential renters. Organic materials kept in self storage can accumulate mildew, mold, or be damaged by water if humidity is not well-regulated. Similarly, metallic materials can rust. Keep this in mind when looking at a potential self storage investment are they prepared to regulate humidity (temperature is not quite so important), as it is a prerequisite for any proper storage unit. This can be accomplished by central conditioning systems, which are generally low maintenance and low cost.

Complimentary services are not to be forgotten for those wanting to get into the self storage investment arena. Many self storage facilities offer free dollies or rolling carts. Elevators and freight lifts are used in multi-story units.  These are potential selling points for certain potential renters and may contribute to a higher occupancy rate. Providing trucks or moving vans to customers, whether for free or for a rental fee are services to consider as well. There are numerous other aspects to take into consideration. Self storage is quickly becoming a ripe market, and should be taken advantage of as soon as possible.

About the Author

Schmitt and Co has been in the Self Storage Management industry for over 30 years. From day to day management to long term goal setting, we are the self storage experts.