3 Reasons to Invest in Self Storage

Self-storage is a real estate investment that can be used by people and businesses to store their goods. It’s one of the fastest-growing segments of commercial real estate, with an estimated $22 billion in revenue in 2016.

Self-storage services a large cross-section of the population, including individuals and businesses, and is needed in good and bad economic times. In this blog post, we will explore the three reasons why you should invest in self-storage.

Self-Storage services are needed in all markets

Self-storage businesses offer services to both individual families and businesses for a multitude of reasons and remain a strong commercial real estate investment. Families spend money at self-storage units for many reasons, including storing furniture and vehicles during a move, remodeling, or downsizing. Businesses also utilize self-storage units to organize additional office furniture, house seasonal items, and protect specialized equipment. 

With so many potential customers, self-storage units tend to thrive in any market, and the sector continues to grow. Commercial real estate investors appreciate the stability and reduced risk self-storage offers compared to other commercial real estate investments.  

Self-storage rentals have fewer headaches, with more favorable lease terms for investors and fewer issues with renters

Because self-storage is not residential property, owners have more freedom to regain their units upon nonpayment than traditional landlords. In some states, the unit can be returned to the property owner within a week of nonpayment, making it much easier to manage tenants who fail to pay rent on time. Any remaining items in the unit can be sold, giving the property owner some ability to recoup lost income in the event of nonpayment. Additionally, because there’s less worry about tenants damaging their units or leaving them uncleaned after vacating them, owners don’t have to worry about cleaning costs or repairs when they turn over the unit–they simply clean out the unit and put it back into inventory!

Self-storage businesses generally have lower operating costs than other commercial real estate properties

Self-storage businesses generally have lower operating costs than other commercial real estate investments, as they require much less attention and upkeep. The units themselves are low maintenance, which means they require fewer repairs and can be left unoccupied for longer periods of time without suffering damage. Additionally, self-storage facilities employ a small staff of workers onsite who oversee the facility’s operations and maintenance needs. Having lower operating costs allows owners to reinvest in new updates in the property and still earn a profit.


With so many benefits, it’s easy to see why self-storage is a great investment. Businesses that invest in this industry have seen positive returns during economic downturns, and the sector continues to grow. Is it time for you to invest as well?

Investor Loan Source, a private money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loan products designed to serve a variety of investors and property profiles, including private money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.