{"id":24818,"date":"2026-07-08T11:30:00","date_gmt":"2026-07-08T18:30:00","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=24818"},"modified":"2026-07-08T11:30:56","modified_gmt":"2026-07-08T18:30:56","slug":"should-i-invest-in-storage-unit-rentals","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/should-i-invest-in-storage-unit-rentals\/","title":{"rendered":"Should I Invest in Storage Unit Rentals?\u00a0"},"content":{"rendered":"\n
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Have you considered investing in storage unit rentals? A stable investment with rising popularity, storage units may quickly become a property investor\u2019s dream. Learn about storage units and tips to get the most out of your investment in this article.<\/em><\/p>\n\n\n\n

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Investing in storage units is an excellent way to generate additional income and is often considered one of the safest property investments. These methods are rising in popularity for many investors, and for good reason. Investment in storage units and storage facilities can be the ideal way to invest in property, as it provides a more stable passive income than many other forms of rentals. <\/p>\n\n\n\n

According to Forbes<\/a>, self-storage is one of the most viable sources of passive income. The average self-storage building had an occupancy rate of 92% in 2021, and approximately 40% of Americans rent at least one self-storage unit. As such, these income sources are becoming quite popular among landlords and property investors.<\/p>\n\n\n\n

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Benefits of Investing in Storage Units<\/h2>\n\n\n\n

Storage units are considered a safe investment because they are unlikely to suffer from the effects of a recession. While housing might become less desirable during times of economic struggle, storage typically does not. In fact, with the frequency of downsizing during recessions, it stands to reason that more people will require storage units. <\/p>\n\n\n\n

According to the blog Next Level Income<\/a>, only about 35% of the money made on a self-storage facility will go to expenses. This means that the profit margins on these facilities are quite significant for investors. Additionally, many of the protections that rental houses benefit from do not apply to rental storage. This makes owning and renting storage units much less complicated than owning rental houses, especially in areas with lots of rental laws.\u00a0<\/p>\n\n\n\n

Finally, renting a storage unit is generally a month-to-month agreement. This means that troublesome renters are easier to remove, as there is no long-term lease forcing you to wait. On the emotional side of the issue, removing a storage unit renter can also be easier than evicting a tenant because they are not living in the unit. <\/p>\n\n\n\n

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Potential Downsides of Investing in Storage Units<\/h2>\n\n\n\n

While careful planning can mitigate risk, as with any investment opportunity, there are challenges when planning to invest in storage units. Conduct thorough market research to ensure you don\u2019t invest in a storage unit in an oversaturated market, as this can significantly impact your ROI. Many additional roadblocks occur simply because of differences from residential real estate opportunities. If your experience investing in commercial properties is limited, do your research and understand what you are getting into. Additionally, as a larger commercial property, storage units can have a higher barrier to entry than many residential real estate investing opportunities. Depending on your property\u2019s needs, you may also need to factor security costs that many residential landlords do not face.<\/p>\n\n\n\n

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What Kind of Storage Unit Should I Invest in? <\/h2>\n\n\n\n

There are three common types of storage units you can invest in, each with different benefits. A standard drive-up unit is the most common kind of storage unit and is the lowest maintenance. However, there is less money in these units than in the other options, as the luxury options typically come at a higher price. The second kind of storage unit is a climate-controlled facility, which brings in more money but is more expensive to run and more prone to maintenance problems, particularly with HVAC. Thirdly, you can invest in multi-story storage buildings that are common in cities, which have similar benefits and drawbacks to climate-controlled facilities, and can even be one and the same, but come with more maintenance concerns. These facilities typically require elevators and necessitate the maintenance of lighting and other similar amenities, typical of running any building. <\/p>\n\n\n\n

Some storage facilities, typically luxury ones, cater to niche markets, such as luxury vehicle storage. While lucrative, these niche markets require very careful planning and consideration of the market in which they are developed. <\/p>\n\n\n\n

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Best Software for Storage Units<\/h2>\n\n\n\n

Rentec Direct\u2019s property management software is an excellent option for your storage unit needs and provides the necessary features for renting storage units. Some property management software options work well for your storage unit rentals. Managing the finances of a high-volume storage facility requires more than just a spreadsheet; it requires an automated, audit-ready system. Just check with your preferred software option to ask if they have options for storage unit rentals.<\/p>\n\n\n\n

Essential software features for storage units:<\/strong><\/p>\n\n\n\n