Self storage models should be ideally situated within a 5-10 mile radius of residential communities. The reason is that consumers prefer storage units to be within close proximity to their homes.
Storage units can be offered in several size dimensions, and at varied price points also.
Speaking of price, most storage units, no matter where in the country you’re located, will usually have the same price range per square foot. Your marketing efforts are therefore the means of leasing units to full occupancy.
The business’ web presence plays a huge role in exposure and sales. A greater percentage of the population prefers getting quotes, location, and size of storage units online rather the Yellow Pages. There are also scores of affiliate networks that are able to market the property, regardless of the business model.
Financiers view self storage as a charming chariot to wealth. This is evident with the low interest furnished for these property investments. Secondly, investors who already own income properties can use current equity to apply down payment on self storage units.
Don’t lose your grip on reality though. Despite the golden opportunity, investors will have to dig deep for solutions to make their property shine. Apart from marketing, the units will also need to be managed efficiently. As such, a crème de la crème property management system will should be implemented.
In addition, legal guidelines will have to be set up, as well as payment systems for collecting rent. It should also be noted that self storage real estate offers lower risks that other properties do not. As a protocol, self storage investors can:
Publish public notices of non-payment
Auction off property and keep proceedings
Jason Harman advises that timeliness is key however. If such situations were to happen, the certified letters of lien would need to be sent on time – to keep the cash flow up – either from payments, or compensation from auctioned goods.
For investors who are starting from scratch, self storage is a good place to start and stay. This is because it offers:
- An incredible passive income opportunity
- History has shown consistent demand for well over 30 years
- This is especially true during economic downturns
- Banks are willing to finance these properties
Be sure to check out the self storage podcast tips, which allows you to hear firsthand how other investors have started and succeeded in this marketplace.
The Commercial Investing Center Team