5 Reasons Why Building a Self Storage Facility is a Good Investment
Although most investors tend to concentrate majorly on residential and commercial properties, they are not the only main form of investment. Self storage facility construction is a fast-growing market that is highly beneficial to investors due to its high utility and demand. It is one of the cheapest, most comfortable, and extremely yielding forms of investment globally. The market forecast by IBIS World had anticipated that the industry would have exceeded 30 billion dollars by the year 2018. The about to be mentioned are some of the main reasons why self storage facility construction is considered a good investment.
When you invest in commercial properties, you have the potential of getting high returns. However, there are a lot of risks involved, particularly when you have empty offices. Vacancies will incur more losses than gains from the rent sent by the tenants. With a professional storage facility construction company, you will only make a small investment to create a perfect and purpose-built facility. That means that you owe less but will gain much from the automated monthly rent. Consequently, you can still make a profit from self-storage construction irrespective of whether or not you have a vacancy in the units.
Anybody can invest in self storage facility construction, including those who are new to the business sector since it has low risk, low cost, and it is also easy to manage. Self storage industry does well when the economy is good, when there are tremendous employment opportunities and when life is comfortable. At these times, people buy new clothes, furniture, and other items then they later get overwhelmed and start searching for places to put all this stuff. Even so, self-storage requirement does not go away when the economy is weak. People will still keep their items and pay monthly fees while waiting for better days.
Garners Sticky tenants
Tenants who keep items in self storage facility construction are more willing to put up with rent increase than those in other sectors. For instance a rent increase means that tenants will not have to look for a truck on one Saturday, find friends to help them lift their belongings and move to a cheaper place.
The units are no longer about keeping extra stuff
Self storage facility construction will majorly benefit you because small business owners can as well use it as a home base for their activities. That is because it minimises their operation cost, gives them the freedom which is absent in leases, and gets rid of the security system requirement.
It is a safe investment
Self storage facility construction is considered a safe investment because once a tenant vacates, the owner can still rent out space to another person.