Is a Self-Storage Facility Still a Good Investment?
The COVID-19 pandemic has many professionals reevaluating their careers and seeking ways to create a stable cash flow, and it has also led to a surge of renewed interest in the self-storage industry. Deemed “recession-resistant” by economists, the self-storage industry thrives even when the economy takes a dive, making it particularly appealing and lucrative for today’s investors.
Metal self-storage buildings are economical, quick to raise and easy to maintain, and once they are up and functional, they have the potential to generate a steady stream of revenue for property owners. Why should those looking to invest in mini storage buildings feel confident in their decisions to do so?
The Self-Storage Industry has a Strong ROI
The self-storage industry continues to see high demand, with Forbes reporting that nearly 10% of American households are now renting storage units. The average monthly cost for a storage unit, regardless of size, is close to $90, so self-storage buildings have the potential to pay for themselves within a matter of months of being open for business. Over a recent nine-year span, self-storage facility owners across the United States saw an annual return on their investments of almost 17%.
Self-Storage Buildings Are Low-Maintenance
A metal mini storage building or complex is also inherently low maintenance. Steel buildings need little in terms of upkeep in comparison to wooden buildings because their exteriors are durable, long-lasting and resistant to damage caused by dirt, sand, pests, climate conditions and so on. Typically, a metal mini storage building needs little more than an occasional power wash to maintain its exterior aesthetic appeal.
Mini Storage Buildings Are Easy to Finance
Self-storage buildings and businesses have also become easier to finance in recent years. While entrepreneurs may be able to obtain conventional loans for mini storage buildings, they may also be able to secure financing through Small Business Association loans or even USDA loans, depending on where they plan to raise their buildings. Other financing opportunities may also be available, depending on circumstances.
Self-Storage Buildings Are Flexible
A steel mini storage building also offers a high degree of flexibility. If entrepreneurs live in areas with lots of boat or RV owners, they can customize their storage units to attract and appeal to this demographic. Building owners can also adapt or reconfigure their buildings by using partition panels or other design techniques to change unit sizes, if need be.
When the economy is strong, consumers tend to make more purchases, and when they make more purchases, they need more space to store their possessions. Conversely, when the economy is weak, renters and homeowners may have to downsize to smaller spaces, creating a need to store certain possessions elsewhere. In other words, the need for storage space is always going to be there, making a metal self-storage building a smart, profitable investment that has huge income potential.