Are Storage Units A Good Investment?

Looking to diversify your investment portfolio and put your money into the fastest-growing segments of the commercial real estate market? Find out whether a self-storage investment is a good idea and why.


Hi there, welcome back to Flex TV. My name is Hope and I will be answering all of your storage related questions. Today we have a question from Benjamin who wants to know, are storage units a good investment? Great question, Benjamin. This might be interesting for a lot of you who feel like opening a small business through making some extra cash on the side. It’s quite simple. So let’s dive right into it. Basically, the short answer is yes. There are several reasons why self-storage is considered to be a really good investment. So number one, we have consistent demand. People always need storage. We collect a lot of stuff and we really don’t wanna let it go. Number two, it’s a very fragmented industry, which means there’s a lot of room for mom and pop type of players. You’re not gonna compete with the huge companies, but you really don’t need to anyway.

Third, reason number three is there is a strong cashflow in this business. You collect rent on a monthly basis, so you always have money coming in. Number four, this is one of the most important things, low operating expenses. You don’t need a lot of manpower. You don’t need a lot of equipment. You just need a room and some security measures. And number five, finally, the storage business is considered completely recession-proof, pandemic-proof, whatever-proof. It is always going strong, no matter what goes on in the world. The important thing is though, if you wanna start a storage business, just like any other business, you have to do your research. A good rule of thumb is if you’re checking your area, check to see how many rentable square feet of storage are per capita in your region. If there are less than six square feet of rentable self-storage space in your area per capita, it’s a good idea to start a facility because people are gonna need more storage. Thank you so much, Benjamin.


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