If you're considering having a diversified portfolio with an appealing asset class option, joining the self-storage industry can be a great choice. Currently, this commercial real estate sector is experiencing a huge boom, making it a good investment opportunity. Moreover, research forecasts that self-storage properties' compound annual growth rate and the return on investment will continue to be high, making the sector more attractive to investors.
If you're considering joining the industry or wondering if self-storage investment in Gloucester, MA is a profitable venture, you're not alone. Below are the reasons why it is currently the rising star in real estate.
Faster Turnaround Time When Vacated
Making an apartment ready for the next tenant takes time and often comes with expensive materials and labor costs. There are usually refrigerators, closets, stoves, etc., to clean, walls to paint, carpet to shampoo, new appliances to fix, and repairs to make. This is time-consuming as it takes the apartment off the rental market for a while.
However, with self-storage, you won't have to worry about any of these. You or your self-storage manager can make the unit ready for the next rental within 10 – 25 minutes, including spraying, cleaning, and removal of leftover items.
Easy To Maintain
Self-storage facilities require less capital to build, maintain and operate. It is a simple structure that does not require high maintenance and managerial costs enough to drain you financially.
Another bonus is that you can run the property's day-to-day operations without the help of a full-time property manager. With the software programs that allow you to sign documents online, specialized surveillance systems, and Kiosks, you can manage your facility from anywhere without being on-site.
Rise In Demand
Regardless of the economic situation, the self-storage business continues to grow. That is because it has a higher cross-section of need from the populace than other real estate investment and its use for businesses and individuals are endless.
With the high price of other rental properties, most businesses consider keeping short-term or occasionally used items like specialty tools, additional inventory, documents, and Christmas decorations in these facilities. Individuals use the facility for temporary storage, remodeling their homes, getting homes ready for sale, keeping occasionally used items, moving parents to nursing homes, and the list goes on and on. Moreover, the facility is easy to order offline and online.
Generates Regular Income
If you’re looking for a great way to increase your stream of income, you just found it! According to Forbes, self-storage has a strong ROI which has proven to be resistant to recession. And since the demand is steady with all individuals, businesses, and companies needing the unit irrespective of the economic situation, investors' opportunities are endless.
Moreover, increasing rent on the units is easier than with other real estate investments. That is because the increase in rent is usually not enough to cause your tenant to move out.
If you're interested in joining the self-storage industry, we can help!
At Sovereign Realty Advisors, we understand commercial real estate and are focused on self-storage real estate investments. Our knowledge and background in the industry have given us a keen eye for properties that are ideal for self-storage development. We develop, invest, source, and manage real estate to provide you with the opportunity to achieve your investment goals through our proven strategic approach. Contact us today, and our experts will help you find the perfect property and fulfill your real estate desires.