Self-storage facilities have been gaining popularity as an investment opportunity in recent years, and for good reason. These facilities provide individuals and businesses with a place to store their belongings, and the demand for self-storage units is on the rise. In this blog post, we’ll explore why investors should consider investing in self-storage facilities over single-family homes.

High demand: The self-storage industry is a growing market, driven by an increasing population, consumerism, and a lack of space in homes and businesses. This high demand for self-storage units can lead to stable and consistent cash flow for investors.

Low vacancy rates: Self-storage facilities have historically had low vacancy rates compared to other types of commercial real estate. This is because people will always need a place to store their belongings, regardless of the state of the economy.

Resilience to economic downturns: Self-storage facilities are considered to be a non-cyclical industry, meaning that they are less affected by economic downturns. People will still need to store their belongings during a recession, whereas demand for other types of commercial real estate, such as an office or retail space, may decrease.

Low maintenance costs: Self-storage facilities require less maintenance than other types of commercial real estate, such as single-family homes. The units are typically just concrete or metal structures with minimal finishes, and there are no common areas to maintain.

Potential for value-add: Many self-storage facilities are older properties that can be purchased at a lower cost and then updated or expanded to increase their value. This can lead to higher returns for investors.

Investing in single-family homes also has its benefits, but it’s important to note that it comes with more responsibilities and risks than investing in self-storage facilities. Single-family homes require more maintenance and come with more responsibilities such as finding tenants, dealing with repairs and evictions, and managing the property. Additionally, the real estate market can be more volatile, and the value of the property can be affected by various factors such as market conditions, the local economy, and natural disasters.

On the other hand, self-storage facilities are typically managed by a professional management team, which can take care of the day-to-day operations, leaving investors.