Actually self storage hasn’t been a sleepy little industry for quite some time but it has managed to fly a little below the radar when it comes to headline space. Believe us, serious real estate investors know about self storage. To give you an idea of how many self storage facilities exist in the United States, the number is approximately the same as the following franchises:
2. Taco Bell
3. Pizza Hut
Add up these fast food franchises and you get around 50,000 retail locations. Self storage comes in at almost 49,000. That’s a bunch, folks. If you think people aren’t paying attention to self storage, you’re wrong. If you are already the happy owner of self storage properties, the following three questions should spring to mind.
1. Should you hold onto your properties?
2. Is it time to sell?
3. Is it time to buy?
With no end in sight for the popularity of the industry, the main question to ask is do you want to continue operating it for the next 5 to 10 years? If so, holding on could be a great idea. When it comes to selling, the action is entered into almost always for personal reason (divorce, moving, need for liquid assets) and never because the market is right. While cashing out for personal reasons is entirely acceptable, remember the old adage, “It’s better to be a year early than a day late.”
As far as investing in more self storage property, with the future looking good, there’s no reason not to, provided you secure proper financing before interest rates head back up.
The MHPListings Team
Flickr / thekirbster