Storage Units for SaleIt isn't too difficult to find storage units for sale. Seems like there's at least one in every town.There are many benefits to storage units. I love some of the aspects of this type of investing, especially the fact that they require less maintenance.
Another one of my favorite features of storage facilities is the less maintenance involved. When you have people occupying a building you have more accommodations you must provide such as heating & air, bathrooms, appliances, lighting, etc. Storage units are literally just a place to store things. Some storage facilities provide climate control and some have outdoor lighting and security cameras, but that's about it. There is also less construction cost involved since you have less features. With less features, there is less repairs. Here are the challenges with self storage units. First of all, you must find a market that isn't saturated. They are such a good investment that many investors have filled a lot of communities with storage facilities. With that said, there are still some opportunities out there you just need to really do your homework. You might even find some good deals on old storage units for sale. Secondly, you need a good location which means you must invest in a good spot. A good location would be one next to an apartment community or mobile home park. You will also have the challenge of collecting rents. When someone occupies a building, you can find them. A renter of a storage unit may be hard to track down. And since a lot of people use storage units mostly for junk, they aren't always good about paying rent. They will be more likely to pay rent in something they live in then they will for something that stores their junk. Fortunately, if the renter is MIA, you can hold a storage unit auction to dispose of the contents plus recoup the lost rental money.
Based upon median incomes and home prices, I would look into how many renters there are in the area. Also, is the area growing? Next, take a look at land prices and begin to put together some projections. Find out what the competitors are renting for and how nice their units are. Some investors believe when looking for storage units for sale they should look for a low cost facility. They purchase land on the outskirts of town where it is cheaper. They build a less expensive facility. I have even seen some that don't pour concrete and use gravel. Their philosophy is that most people store things that are not that valuable and they won't care about the facility as long as it's secure and protected from the elements. They will charge less rents and hope to attract more people. Another way is to offer nicer features, such as a good security system and climate control and charge slightly higher rent. This is a decision you will have to make. You need to consider all variables in your projections, such as construction/acquisition costs, debt service, monthly expenses, management fees, etc. Remember also that it is smart to try to get as many units as you can per acre. For example, if you pay $50,000 for the land, it is smarter to put 100 units as opposed to 50 units to achieve the most return on investment. Take look in your local paper on online and you're sure to find at least a few storage units for sale.
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