How the Self Storage Industry Got Started
Self-storage units are big business. In 2016, the industry generated $32.7 billion, or three times the gross revenue of Hollywood blockbusters. It has grown at 7.7 percent annually since 2012 and employs 144,000 people in the United States. It is estimated that the number of self-storage units nationwide could fill Hoover Dam 26 times. But how did the industry grow to be so popular? Here are some facts that might surprise you. It has over 2 billion square feet of space under roof, more than enough to fill Manhattan Island.
Some people may be approaching retirement age, or they may want to downsize their home. Health reasons or moving closer to family and friends might require relocation. In either case, a self-storage unit can be a convenient place to keep your belongings for a limited time. This is especially useful if you have many antiques, art, or other treasures. In addition to providing safe storage, the rental contract can be arranged for a convenient length of time.
Another thing to consider is financing. Self-storage facilities require a substantial amount of money to start and run. This amount may be based on the location and other factors. It is important to choose a financing option that suits your business needs and can cover the cost of running the self-storage facility. In addition to operating costs, you should also prepare for the possibility of debt and other liabilities. Fortunately, self-storage businesses aren't as risky as they may seem. Click this website and discover more about this service
Before choosing the size of your self-storage unit, conduct market research in the area. This will help you identify the customer base within a one to five-mile radius. Self-storage renters typically fall into the middle and upper middle-income brackets. The average age range for tenants is between early 20s and mid-forties. You should also look for a facility that offers small units, such as 5x5 units. If you're looking to open a facility in a homeowner's neighborhood, you can choose a facility that offers 10x10 units.
Demand for self-storage is growing, thanks to many factors. Baby boomers are downsizing, millennials are opting for apartments over houses, and sustained mobility of American workers has contributed to the growth in self-storage. This sector of the real estate industry has a proven track record of being recession-resistant, which makes it an excellent choice for investors. A self-storage business can generate attractive investment gains and new ways to fuel your business. Check out this source
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Some self-storage facilities have restrictions when it comes to the type of items they allow tenants to store. Generally, you won't be allowed to keep certain items in the self-storage space, including explosives, flammable materials, and weapons. Therefore, you should check with the self-storage facility you're considering for rental before signing a lease agreement. And make sure to purchase self-storage insurance if you haven't already.
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