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The following was written by guest blogger Scott Meyers.
Real estate is always a hot investment. Typically people think of flipping houses or rental units as good revenue sources, but there is another plan that is exceptionally profitable and smooth to operate.
The self-storage industry is resilient, even weathering the COVID-19 pandemic. Keep reading to learn what you need to know about investing in this profitable sector.
Why invest in the self-storage industry?
The short answer is that it tends to be a money-maker. People in America generally have lots of material objects and need places to store them!
When people move to a new area, downsize their homes in retirement, or when Millennials move back to their parents’ homes, it creates a temporary or even long-term need to store stuff. So, the demand is always there. Through recessions and booms alike, self-storage facilities have proven to be a smart investment.
Not only is the demand high, but the upkeep for you as the landlord is low compared to rental units or fixing up houses to resell. There are no tenants, no appliances to break down, and very rarely are people present on your property.
Also, even if you only end up renting about half of your units, you’ll likely still make some money since the breakeven point is usually about 40-45-percent capacity. This makes the investment low-risk.