By Garrett Byrd
Self-storage has become an attractive real estate investment option for both institutional and retail investors. Here's why:
Recession Resistance: Self-storage maintains consistent usage during significant life events, whether positive or negative, making it resilient to economic downturns.
Inflation Hedge: Your biggest expense is the cost to build. With short-term, 30-day leases, self-storage provides owners with a shorter time horizon to adjust to market conditions, making it a hedge against inflation.
Minimal Government Regulation: Compared to other real estate sectors, self-storage has fewer building requirements and a more streamlined process to get your unit back to a rentable state if your tenant falls in the rear due to limited government regulation.
Consistent Returns: From 2009 to 2018, self-storage facilities delivered an average annual ROI of 16.9%, outperforming office, industrial, retail, and multifamily properties during the same period.
Stable Occupancy: National occupancy rates have remained steady, with an average of 91.5% in Q1 2020 and 96.5% in Q3 2021. In 2023 we have a mature facility is ranging between 88% - 92% occupancy.
Barriers to Entry: Limited supply in the self-storage market creates barriers to entry, resulting in an attractive investment landscape.
Manageability and Monetization: Self-storage real estate is easy to manage with the right systems and platforms in place to become an elite facility. With the right team, you can generate and grow your income, making it an obvious choice for investors. Additionally, the tax advantages associated with this asset class benefit passive investors.
When investing in self-storage real estate through an LLC, investors can enjoy the pass-through income, allowing them to claim depreciation benefits on their taxes.
Furthermore, depreciation can be used as a tax shield on other investments. This means that profits from other ventures can be protected by utilizing the depreciation benefit from the self-storage investment.
Overall, these tax advantages significantly reduce the tax burden on self-storage investments, providing an additional benefit for investors.
The Time is Now -Seize the Opportunity:
The current market presents a prime opportunity to invest in self-storage real estate. However, this window of advantage may not last long. Institutional investors are increasingly entering the industry, leading to limited opportunities for retail investors.
A long-term investment in self-storage offers lower risk, stable returns, and the potential for solid appreciation over time.
While market uncertainties may cause concern for some, self-storage investors should be optimistic about the future. Volatility is a normal aspect of long-term investing and can present various opportunities for those who can weather the storm to a multi-million dollar real estate nest egg for generational wealth.
If you would like to learn more and start your journey to self-storage ownership click the link here: http://www.storageauthorityfranchise.com/opportunity2
About Storage Authority Franchise: Storage Authority Franchise is a leading provider of comprehensive solutions for self-storage operations. With a focus on excellence and profitability, we empower franchise owners to achieve elite status in the industry as an alternative to 3rd party management. Our proven systems, expert guidance, and unrivaled support help self-storage facilities thrive and surpass all expectations.
If you are thinking about self-storage you owe it to yourself to contact Garrett Byrd Direct: 941-928-1354 or Garrett@StorageAuthority.comto learn more about the Storage Authority Franchise opportunity.