How Does Self Storage Stack Up Against Apartments and Residential? |
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So How Does Self Storage Stack Up Against Other Forms Of Commercial Real Estate Investments and Single Family Rentals?
When comparing Self Storage to other real estate investments such as Apartments, Office Buildings, and Retail, how do they compare? Lets explore some of the most important factors. |
Development Costs
The development cost of self storage is one-third to one-half that of Apartments (multi-family), office buildings, or retail properties. |
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Operating Costs
Owning Real Estate requires regular maintenance of the grounds, appliances, plumbing, electrical fixtures, etc., which usually require a maintenance staff. As the graph illustrates, self-storage operating costs are less than half that of other real estate properties. |
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Break-Even Occupancy Rates
When owning investment property, you simply must fill a certain amount of space to keep from losing money. In self storage, this break-even point is considerably lower than other real estate ventures due to its low development costs. |
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Annual Rent Ranges
This chart illustrates that the annual rent ranges for self storage fall within the range of other real estate. However, considering the lower development and operational costs we discussed above, self storage can yield a better bottom line. |
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Failure Rate Comparison
Compared to other real estate investments, self storage has the ability to absorb economic fluctuations, maintaining value during both good and bad economic times. |
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After years of spending every weekend and many evenings remodeling single family houses to rent or sell, Scott Meyers convinced me that Self Storage is the way to go. Now that I have sold the single family houses and own Self Storage, I haven’t painted a wall or cleaned someone else’s toilet for months now. Now when a tenant leaves, I grab my broom and in 30 seconds the unit is ready to rent for the next tenant.
Thanks Scott! -----Chris C.
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It all boils down to using a system – “Systems run the Business - People run the System”! I can’t tell you how dramatically our life changed once I perfected our system for Finding, Evaluating, Buying, and managing our Self Storage Empire. Then, after we Dumped all our Single Family Rentals, Apartments, office buildings, parking lots, and warehouses – I turned to my wife and said “Listen”. She said “But I don’t hear anything”. And I said – That’s right - the phone stopped ringing! No more calls about leaky plumbing, roofs, or tenant fights, evictions, broken appliances, health inspector calls, etc.…….. It was Quiet!
Sound too good to be true? I’m here to tell you – It isn’t. Now I invite you to Enjoy the Silence and the peacefulness of true, passive income in Real estate by Investing in Self Storage!
Scott Meyers, CSSM© is the President and Owner of Indianapolis Based Alcatraz Storage™. He is also a national speaker and trainer in the field of Self Storage Investing through his company SelfStorageInvesting.com. To reach him, or to invite him to speak, call 866-693-5999; e-mail Scott@SelfStorageInvesting.com |
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