If you own a storage business, what’s it like?

[Anonymous]

How profitable is it? Is it better than owning rental properties (fewer hassles, better return)? How time and labor intensive is it to run?

[Anonymous]

You can look into buying a running business in a high growth area. The rates also depends on the vacancies and the rent cost going up with time. Lots of other factors for commercial REs including financing that comes into play.

[Anonymous]

I have owned storage as an asset class. Today I am mostly
In strip malls and single tenant retail and industrial properties. Self storage was a great asset class, but I think that today the cap rates are too low (I sold when I was being offered ridiculously low cap rates). It’s a penny business meaning that your cost are fixed so one you hit profitability anything you can add directly increases your bottom line. Moving trucks, propane, tie air and vending machines.

[Anonymous]

My business professional owns several in the Towson area. The biggest hassle he appears to have is staffing the office (and he pays top dollar).

[Anonymous]

To reduce cost of entry, I would look at outdoor storage lots. Just need to stripe it and gate it. So many people need places for their boats, rvs, trailers, food trucks, work trucks, etc.

[Anonymous]

Staff is constantly dealing with hassles and shady characters, but financially the business is sound. Make sure you have an excellent manager/plan for staffing when there is turnover and good financial controls. It is a business where money can disappear under the table.