Anyone Investing in Self Storage Units?

Question

I recently came across a small self storage complex that is for sale. I have not given these much thought but I do think it could be a great investment.

I have a few questions for those who currently work with self storage. The complex I'm looking at is small and consists of 32 units that are all 10'x15'. It's in a small town of 3,000 people and was built in 2002. Here's the kicker... I live 500 miles from where these are located. Is this viable? What kind of issues do you run into with self storage? There is not a gate or fence on the property and there is no electricity. Just in the beginning stages of thinking about this and would like to hear the pros and cons.

Thank you

Michael Wagner · Answer

HI Tyson,

Small towns can make great markets to invest in with Storage.  I just bought a facility in APril in a town of 1700 people and its 1150 miles from where i Live...so yes its totally doable.  Here's some things to think about:

You'll want to look at how much other storage is available in that market.  Very generally, 7-8 sq. ft. per person is a national average so if there's less than that you are likely in good shape (NOTE THAT THIS is a Generality, some markets support less storage and others considerably more).

Is there room to expand?  I ask because remote management is definitely doable but your property is on the small side and the bigger it is (or becomes) the more money you will ultimately make.  Its a lot easier to get fed up with remote management thats making you $1000 a month than it is with a property that's making you $5000-$10,000 per month.

Adding a fence and electronic gate will make remote management much easier.  You'll still need boots on the ground but that's not all that tough to secure relatively cheaply.  If you can buy it right AND there is room (physically and in the market's demand) you should definitely explore it.  How is it performing right now?  Whats the asking price? Feel free to message me if you want to connect.

Cody Campbell · Answer

I agree with @Michael Wagner about remote management especially with a fence and gate system. I believe the facility is to small to support that type of  remote management. If there is room to expand then the cost of a fence and gate system may be feasible. Definitely take a look on what’s available in the market and if there is a need.

Tyson Lee · Answer

Thanks for all the info @Michael Wagner. I'll send you a message.