When considering investing in commercial properties to make a passive income, you have plenty of real estate options from which to choose. Broadly, there are office, retail, multi-family, industrial, and special purpose properties. Each one has its unique benefits for investors. However, if you live in a metropolitan and suburban area like Maryland, there is one particular kind that deserves special consideration. Below are the benefits of investing in storage units.
Storage units are popular for numerous reasons, and there is no reason why they won’t continue to be. People use storage units to help them organize when decluttering, moving, sorting inherited possessions, and keeping larger property like boats and tools. College students also commonly house hard-to-transport items. Meanwhile, with the ease of purchasing and receiving materials online, the more likely people will need storage for those purchases. It is rare to hear that someone’s house has too much storage.
Investing in storage units has a plus that doesn’t come with multi-family investing. While everyone needs a home, homes have a tendency to get dirty. Hopefully you won’t find any squatters in your self-storage units, but nevertheless, these rental spaces only need a minimal sweeping before turning it over to the next tenant.
Hauling lots of goods or hefty items from one place to another is no fun. Rather, it’s a hassle that people want to do as little as possible. Plus, storage needs and organizing many possessions are often long-term. These two factors mean that a low percentage of people only rent for a few months. Over half keep their units for over a year, regardless of a rent raise.
Cash flow is how much you get or don’t get after paying for the mortgage, maintenance, etc. on your commercial property. When investing in storage units or any other type of property, you want your cash flow to be positive. Storage units tend to have a positive cash flow, which is often around 8-10%. On top of this, you may qualify for tax benefits.
Lastly, the self-storage unit market is resilient against economic recessions. Despite any state or national recession, people will still need storage. In fact, they may need that storage space to help them save money overall by downsizing.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.