Various economic trends have tested self-storage facilities, and they remain a great asset. 

Americans almost always have reasons to store their possessions, among them death, disaster, displacement and divorce.

While the COVID-19 pandemic hurt other areas of the economy over the past couple of years, storage units weren’t affected. In fact, occupancy rates are at an all-time high in the country. That’s because the pandemic forced people to deal with the major reasons for storing their possessions. Relocation became more common, for example.

As demand for storage units has grown, so has the interest in buying storage units as an investment property. 

People use storage units for all kinds of reasons. People rent units from a couple of months to 10 years with an average of 14 months. Studies show the annual revenue for the storage industry has increased almost 50 percent in the last decade.

When considering investing in a storage unit, there’s more to evaluate than the reasons behind high occupancy.  When financed, revenues can pay off the loan to create more equity. Revenues then generate cash flow.

Forced appreciation occurs when the investor increases cash flow and property value by raising the rent to market, generating income in such other ways as outdoor storage and wisely managing operating expenses. 

Self-storage units can be undemanding to maintain compared to rental houses since tenants don’t live in them. There are no expensive appliances to purchase or repair. 

A storage unit property can be as simple as a metal building with locked doors.  

Understanding the economic shield and demand for storage units can help in evaluating the investment opportunity.

I think self-storage units constitute a great investment that will grow in value, even during a recession. Storage units also offer an efficient way to generate passive income for their owners.

It’s prudent to seek the guidance of an industry professional, though, because these deals can become complicated.