Amazing Benefits of Owning Self Storage Facilities
There are a variety of benefits to owning a self-storage unit or facility including the return, appreciation and low maintenance work that needs to be put into them, among others. The value of storage facilities continues to appreciate much like the Toronto housing market, making it a worthy investment that will generate a return. Additionally, storage units tend to be in demand whether there is economic growth or recession, so you don’t have to worry too much about the condition of the market. In this article, we will be going over some of the top benefits of owning a self-storage facility and how you can use it to create and drive a passive income for yourself and for your family. And who knows, maybe your storage facility will be featured on shows like Storage Wars one day!
Asset Class
Self-storage facilities are the number one best asset class in the USA with a 66% price growth over the last 12 months and 9% of Americans rent self-storage units, leading to a good return on investment.
Value Appreciation
Self Storage facilities appreciate in value at a rate close to that of a multi-family home, making them a great investment for the future and building generational wealth. The average price of self-storage properties has appreciated by over 30% in the last 5 years.
Low Maintenance
If automated by installing 24-hour security locks and gates, access keys, washrooms and the like, self-storage facilities are relatively low maintenance investment opportunities that are not labour intensive.
Regulation
Self-storage facilities are not regulated under the normal tenant-landlord laws that apply to most renting situations. They are the only real estate type that allows landlords to lock tenants out and sell their belongings if they do not pay their rent.
Demand Increases During Economic Booms
During economic booms people often have a more expendable income and thus purchase more goods, resulting in the need for a place to store things and the income to be able to afford to rent a self-storage unit. Additionally, businesses use these facilities to house products, samples, overstock, archives and more.
Demand Increases During Recession
When there is a recession or economic downturn and people need to downsize or close their businesses they will require an inexpensive solution for storing their most valued items. As a result of this the demand for renting self-storage units increases.
Easily Evict Uncooperative Tenants
With a self-storage facility, it is easy to evict a tenant who doesn’t pay their rent. In the event that they do not resolve the matter, you can auction off their things within 10-15 days with a strong agreement, as seen in shows like Storage Wars.
Expand Your Units For Cheap
If you have a desire to expand the units on the lot of your facility you can purchase “c-cans”, sometimes referred to as “sea cans” aka certified secure shipping containers and put them in empty parking lot areas to add more storage units. By doing this you will be able to generate more income through your increased capacity to take on tenants.
As you can tell there are a number of benefits to owning and renting a self-storage facility, including very landlord-friendly eviction notices that allow you to maintain control of your units, regardless of the tenant. Now is a great time to get into the real estate investment market and claim your slice of the pie! To stay up to date on hot property investment tips for the GTA follow CADMEN Properties.