Why Storage is a Preferred Investment

One huge upside in Storage as an asset class is the expense ratio so much lower with Storage than other Asset Classes. The expense ratio on a rental home is 40 – 45% sometimes 50%, storage expense ratio is 30 -35%. There are many reasons the expense ratio is so much lower.

Ease of locking out a tenant that doesn’t pay: and if needed remove the tenant. In most states a tenant’s goods can be sold if they haven’t paid in 57 days, the process of removing a renter from a home is significantly more complex.

Shorter lease terms: storage leases have a 30 day automatic renewal, which means it’s easy to cancel with a specific tenant.

Ease of rent raises: to rates when you get 80 – 85% full is simple.

Short turn around time once a unit is vacated: It is quite fast and simple to “flip” to a new tenant: no need to change or shampoo carpet, pain walls, spend much time on cleaning, manage repairs, it’s a cement floor and steel walls.

Cost of personnel for a storage facility is very low ~ no showing units to tenants, phone calls at all hours for plumbing issues. The check in process can be automated online, and a local employee that does basic grounds maintenance need not work a lot of hours.

Recession Proof: all populations and economic classes and situations have the need for storage. The need for storage with individuals and businesses includes times of getting a home ready to sell, moving into a new home, downsizing to a smaller home, upsizing by adding “toys” like a boat, RV or other items, remodeling homes, temporary storage while moving from one house to another, moving a parent to an assisted living facility, nursing homes, a child moving back home and many many other life situations encompassing both good and bad economic times in our lives benefit from storage.