Investing in Self-Storage Facilities:  An Overview

Richard Stephens

February 01 2008

For more than thirty years, an ever growing number of people from different walks of life have elected to become involved in self-storage investment industry.  These men and women have determined that adding real estate investments to their overall financial portfolio would serve a number of useful, beneficial and profitable purposes.  In this regard, a significant number of real estate investors have elected to put their money into Self-Storage Facilities.

If you are considering investing in real estate yourself, you will want to take a look at the pros and cons of putting your money into storage properties.  In this regard, the reality is that you likely will find that you can realize some important benefits from putting some of your own money into self storage investment properties.

The first factor that you need to consider when you are contemplating an investment in self storage property is the size of the property itself.  The bottom line is that Storage properties run from simple parking spaces to secured multi-level buildings with multiple units.  Needless to say, as the number of individual units in a self-storage facility increase, so will your responsibilities, obligations and duties.

Second, your own real estate investment experience comes into play when you are considering the purchase of self-storage facilities.  Therefore, you need to seriously analyze your own capabilities in light of the responsibilities you will assume if you purchase a storage facility.  If your experience (and time) is limited, you will want to make sure that you look for an appropriate manager or management company to assist you with the duties of running and overseeing the property in question.

Third, before you make a purchase of any self-storage facility, you need to make absolutely certain that you obtain appropriate independent inspections of the facility at hand.  You will want to make certain that you engage and utilize the services of certified inspectors, always.  These are inspectors that have the necessary experience and training to undertake an appropriate inspection of the storage facility you are considering purchasing.  You cannot rely on an inspection that was performed by the seller's inspector and without your involvement and participation.

By paying attention to these considerations, you will be in the best possible position to begin a course of investing in and owning self storage facilities on the right foot.  You will be putting yourself on a course for making a nice income through your storage industry investment.