The Ease of Owning Self Storage
Investing in and owning real estate is one of the best financial decisions you can make–especially when it comes to the self-storage industry. Not only is the demand for self-storage increasing steadily, making for an incredible success rate and high-profit margin, but the facilities are also a breeze to maintain! In fact, self-storage is one of the easiest assets you could possibly own today. Here are just a few reasons why:
Self storage requires less initial capital
Self-storage is one of the easiest forms of real estate investment to get started in. That’s partly due to the fact that self-storage units typically require much less initial capital than other options. When it comes to conventional business loans, you may be able to get a down payment on a self-storage unit for as low as 25%. Small Business Association loans can get you an even better deal, with down payments reaching as low as 10%. So if you don’t have a large sum of money to work with, investing in self-storage is one of the best ways you can watch the capital that you do have to grow quickly–especially thanks to the incredibly high success rate.
Self storage has a high success rate
Want as low of a risk as possible when it comes to your business venture? There’s nothing wrong with staying on the safe side! That’s why self-storage is the way to go. Did you know that according to Investopedia, 50% of new business ventures fail within the first five years, but 92% of self-storage startups succeed?! That’s an incredible success rate–and it makes sense, considering the constantly increased demand for self-storage facilities.
Self storage is easy to operate
Once you decide to get started with owning and investing in the self-storage business, it’s smooth sailing. This business is straightforward and incredibly easy to operate. You’ll be able to learn the ropes without any previous experience–but if you do find yourself in need of some help along the way, you don’t have to worry about getting stuck. That’s because there are a ton of classes that can allow you to learn more and get more comfortable in the business, like the online certification classes in self-storage management that are offered by the Self Storage Association.
Self storage is easy to maintain
Looking for the best way to own and manage real estate while hardly having to lift a finger when it comes to maintenance? Self-storage is absolutely the best way to go. That’s because, unlike most real estate ventures, self-storage facilities are designed to be as simple as possible, making cleaning, upkeep, and maintenance a breeze. Plus, the steel-constructed facilities are virtually damage-resistant. It’s about as low effort as real estate gets; a changed light bulb here and there and some quick sweeps between tenants is nearly all it takes. You may even find yourself able to go years without making any significant capital improvements to space. This also makes the tenant turnover process much smoother and quicker, which is another big plus!
Self storage allows for more frequent rent increases
In most other real estate ventures, such as residential and many commercial asset classes, owners are only able to raise the rent for current tenants on an annual basis. Luckily, when it comes to self-storage, there are no such rent raise restrictions! As an owner of a self-storage facility, you’re able to raise the rent of your facilities as frequently as you’d like. This is a huge benefit, especially considering that increasing rent is one of the best ways to increase the value of commercial real estate assets. Small rent increases won’t make a big difference to tenants–especially when the other option is to move spaces–but can add up to a significant return for owners and investors.
Self storage is recession-resistant
In general, real estate is a fairly stable market to invest in–but as we know, that isn’t always the case, and the risk of another recession is something that remains in the back of many investors’ minds. Luckily, self-storage is a virtually fool-proof route to take. The self-storage industry has held its ground through all the ups and downs of the market: in a good market, the demand for self-storage increases as people are buying more and need more space to put it, while in a bad market, people need facilities to put their excess belongings as they downsize their homes or businesses. And if you’re still looking for a little bit more peace of mind, here’s something to consider: self-storage saw the lowest foreclosure rate of any asset class during the 2008 recession.
Trust TyMac Group LLC for Your Self Storage Ventures
At TyMac Group LLC, we’re dedicated to helping our partners find the best self-storage investment opportunities. With 18+ years of experience and a wealth of knowledge under our belts, we’re able to carefully assess each potential acquisition and find the best risk/return ratios on the market. If you’re looking for minimum risks with maximum returns, don’t hesitate to reach out and learn how to start reaping all the rewards of owning self-storage — you’ll be amazed by the ease of it all! Check out our website to get in touch today: www.thetymacgroup.com
