Is self-storage a good investment?

Self-storage can be a good investment for some people, but it's important to consider a number of factors before making a decision.

The advantages of investing in self-storage include:

1. High demand: Self-storage has become increasingly popular in recent years as more people are downsizing their homes, moving to new cities, and storing items that they no longer have room for. has resulted in high demand for self-storage units.

2. Recurring revenue: Self-storage units generate recurring revenue through monthly rent payments, which can provide a steady income stream.

3. Potential for appreciation: The value of self-storage properties can increase over time, providing potential for appreciation of the investment.

4. Tax benefits: Self-storage investments may provide tax benefits, such as depreciation, interest deductions, and depreciation recapture when the property is sold.

However, there are also some challenges and risks associated with self-storage investing, including:

1. High initial investment: Self-storage facilities are typically expensive to build or purchase and may require a significant amount of upfront capital.

2. Competition: The self-storage industry is highly competitive, and new facilities are always being built. This can make it difficult to attract and retain customers.

3. Maintenance costs: Self-storage facilities require ongoing maintenance and repairs, which can be expensive.

4. Regulation: Self-storage facilities are subject to various regulations, including zoning and environmental regulations, which can increase costs and limit the potential for profit.

5. Economic downturns: Like any real estate investment, self-storage facilities can be impacted by economic downturns and decreased demand for storage.

In conclusion, self-storage can be a good investment for some people, but it's important to do your research, understand the risks and rewards, and make an informed decision. As with any investment, it's also important to diversify your portfolio and not to rely solely on self-storage investments.