The concept of self-storage units in Los Angeles has grown in popularity over the last few years. More and more people have started to see the benefits of it, are leaning towards it for its longevity and high quality. Self-storage investors have started to notice the pros outweigh the cons.
Economically as well, self-storage companies have reported that investing in self-storage is a good decision. Some of the best self-storage companies in Los Angeles such as U-Haul and StorageMart have even stuck through pandemics and recessions due to its constant high demand. Here are some other reasons why self-storage investors are on the right track:
- Can withstand circumstances such as recession
Economic downturns such as the recession or the pandemic usually weigh heavy on businesses and incur huge losses. However, the self-storage business is one where you might never see a drop in demand due to its constant need.
There are instances where people wish to sell their house and shift to more affordable accommodations due to economic downturns. Then, a self-storage unit is needed as well. Or if the economy is doing well, people might want to buy more houses which increases the need for self-storage as well.
- Great Side Hustle
There is not much to do when you invest in a self-storage unit. You do not have to actively take care of it and cater to all it’s needs. The most investors find themselves doing when invested in a self-storage is cleaning it up and restoring its quality before it shifts to the next owner. Therefore, with minimal intervention you are still having a great side hustle to rely on.
- Not A Monopolized Market
This venture seems to be very lowkey. In the sense that reportedly 70% of this industry is owned by private individuals who are in it for the extra passive income.
There is no chance of having a monopoly venture in this market as there aren’t many profit-driven competitors. Investors will never have to worry about market power players.
- Creates A Steady Cash Flow
Much like other furniture or necessities rented, the user will have to pay a monthly rent to the investor for the usage of the storage unit. This means that it creates a steady side hustle on a month-to-month basis.
Accordingly, the investor can fluctuate the rent based on how he wishes. They can also fluctuate the rent according to the conditions of the economy, premises or other factors.
- Steady High Demand
The economy and consumer demand are both ever dynamic. The shift towards e-commerce has increased the consumers preference towards online shopping. The pandemic also made majority of consumers ditch the mall and lean towards online shopping as well.
This means there is an increase in items and possessions. This is due to the convenience and ease of ordering which was once not there when people had to visit department stores traditionally. Therefore, since there is an increase in possessions people have started finding the need of storage units.
More people are investing in storage units to preserve their most valuable items. So since there is a heavy demand, there is a lot of success and money lying in this industry which can be unutilized by investors.
- Easy Maintenance
There is not a lot of maintenance needed for storage units, unlike other real-estate investments. The most maintenance that would have to take place is the cleaning of the storage unit before it is passed to another owner.
Additionally, now there is no need to be on-site to overlook the maintenance and condition of the self-storage. There are surveillance cameras, kiosks, and ability to sign necessary documents online if there is a need to.
This way you can do remote check-ins with the available technology you have. This also diminishes the need for a manager or supervisor for the storage which is an extra cost.
- Extension Strategy
There are many ways to add onto your present venture of storage units. Offering additional ancillary products and services such as a movers and packers, dust covers, trailer locks and keys, and furniture slides are great add ons to create a sort of brand. This will create a brand besides your usual investment.
This will increase the cash flow you are receiving. And, the more services you are willing to offer, the more likely are people to want to rent from you. This makes the act of renting the storage unit easier as a whole.
Making sure you are adept with the additional products and have a reliable team is important when you are extending your brand. Studying your competitors will be crucial as well, as this industry is ever-growing.
Conclusion
Therefore, it is no hidden fact that this industry is fruitful and advantageous. There are many reasons why investors would benefit from associating with the self-storage industry.
It is a great way to make an additional income, create a brand or have a side hustle with minimal to no maintenance.
