Investing in Self-Storage in Austin

SELF STORAGE INVESTMENT

The development of the self-storage industry and the number of people investing in such kinds of real estate properties is growing; what’s more, some claim that this self-storage market is about to become the fastest-growing one.

Thanks to the variety of different purposes this kind of space can serve, the demand is vast. If, for example, you are coming to live in Austin, or you are about to move your business there, renovate your home or declutter it, chances are high that you’ll need to get yourself a storage unit.

Still, since nothing can go without its good and bad sides, investing in self-storage facilities in Austin can’t as well. That’s why we will talk about this kind of investment’s main pros and cons.

Pros of investing in self-storage facilities in Austin

1. Easy to construct

The infrastructure that is required for constructing a self-storage unit is minimal. Apart from good lighting and a reliable security system, there is nothing that is considered essential. There are no expensive plumbing system expenses nor some special decorating efforts.

Still, having a climate-controlled storage facility with a good insulation system is really desirable. However, if you decide to make such a huge investment, you’ll have a chance to increase your rent and make your hard work worth it.

2. And to maintain

On the other hand, when it comes to maintaining a self-storage property, it comes down to cleaning and, from time to time, painting the storage interior. The advanced modern technology makes maintaining things much easier since you can control lightning and security systems long-distance, and cleaning services are available everywhere.

3. There is always a high demand for it

The best thing about owning self-storage is that it can serve many purposes, and there are numerous reasons why people rent them.

In times of good economic situation, people buy more, invest in renovating their properties and relocate more. They’ll need a solid storage unit to keep their stuff there in all those situations. On the other hand, in bad times, people tend to downsize, move to a smaller home, or make relocation plans in search of a better job. So, what’s the thing they will search for? A storage unit, of course.

4. Easy owner-tenant relationship

The leases most self-storage owners make with their tenants are short-term. This kind of month-to-month agreement is helpful in many ways. First of all, it is a stable source of income every month. On the other hand, tenants who do not pay their rent on time won’t be your problem. In fact, if you come across one such person, you can easily evict him since some long-term lease does not bind you.

Another great thing is that remote maintenance of the storage units requires a little in-person communication with the tenants. That can save you a lot of time, but it will also spare you from the inconvenient situations when you must evict the non-paying tenant.

5. It opens more opportunities to get more profit

Investing in self-storage facilities in Austin is an excellent financial project. That is because it mainly opens many other opportunities for additional profit. If you enter the storage industry, you can easily widen your offer to renting moving trucks or even selling relocation supplies.

 

Cons of investing in self-storage facilities in Austin

1. Competition

Since constructing a self-storage unit is not such an expensive or difficult undertaking, more and more people have decided to try their luck in this industry. That causes constant competition growth. And although the demand is increasing comparatively, you’ll need to invest in changing and upgrading your facilities to satisfy the tenants’ needs and beat the competition.

However, if you see you cannot deal with the competition and are not making enough profit from your facility, you can always turn it into your office if you need one. Self-storage units have shown as an excellent temporary office solution for those about to start a new business or for business owners looking for a new office space.

2. It depends on a good management

Good management is an essential part of every successful business. However, since the business of storage facilities usually includes one person, or sometimes two people, in a team, they really need to carry out a huge responsibility. That’s why hiring the right person to deal with the management is even more complicated for this kind of business.

3. Location matters

It is important for your self-storage facility to be noticeable and easily accessible. Finding a good and strategic location for it is thus your primary task. That should be a place where there is a high demand for a storage unit. Areas in Austin with heavy traffic, or the ones that are expanding in terms of housing, are the perfect starting points.

4. Problems with tenants are not completely avoidable

It is not entirely possible to avoid issues that renting some space to a tenant brings. People can be pretty complicated, and since Austin has become a real magnet for Millennials and other people looking for a good life standard, you need to be extra careful about whom you are renting your storage space. From not paying rent on time to living in the unit or using it for some illegal purposes, you need to be ready to deal with it.

5. You’ll need to pay to keep it secured

Keeping your storage unit secured is very important; that is one of the top priorities when you decide to invest in self-storage facilities in Austin. You are about to promise a safe place for your tenants’ stuff. So, please don’t play with their trust and your reputation. Invest in buying a sound security system and make your storage facilities competitive.

Article provided by Guest Blogger, Margaret Hollow at Spyder Moving.

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