Over the past few years – especially in light of some popular television shows – investors have taken note of the potential for profit in storage units. Yet, money can be made in areas other than just simply buying and selling the items that are left behind in these units.
In fact, investing in storage units for income can produce a nice incoming cash flow that comes from owning the actual storage facility itself and renting out the units themselves. This is because each and every one of those units can be its own individual income stream.
Types of Storage Facilities to Consider
There are a number of different types of storage facilities that may be purchased. For example, there are general storage facilities that provide several different sized units for the storage of furniture and other household items.
In addition, there are also facilities that specialize in boats, RVs, and other recreational vehicles. Some of these may be close to lakes or other bodies of water in order to make it convenient for those who are storing their recreational vehicle there.
There are still others that focus on storing large construction equipment such as bull dozers and cranes. These facilities may not offer garaged storage as it would require too large of a structure. Therefore, these locations oftentimes simply consist of a field or other gated-off area.
In any case, those who store their items at a storage facility are typically charged a monthly “rental” amount. Should the “tenant” default on their rent, the storage facility owner will be able to take access to the item or items that are being kept in storage. Such items may be sold in order to help in recouping the lost rental income.
One of the biggest advantages to owning a storage facility as versus a owning residential or commercial rental property is that you are not likely to be contacted for major maintenance issues such as plumbing or a leaky roof. In most cases, the buildings where items are stored are typically made of concrete, and it is items rather than humans that inhabit the property. At times, this can be a real advantage.
Real estate can offer a wide variety of income opportunities in addition to just purchasing houses and apartments. For additional information, give us a call. We can help to answer your questions, and provide you with more details on income and tax related real estate strategies, too.