Why Is Self-Storage Investing so Lucrative?

Self-storage garners sticky tenants. People in this asset class are willing to put up with more rent increases than tenants in other classes. Let’s say an owner increases rent by 6 percent. Self-storage customers paying $100/month aren’t going to take a Saturday to rent a moving truck, get friends together to help them lift things, and relocate all their belongings elsewhere to save $6. But apartment dwellers paying $1,000/month might be motivated to move to save 6 percent.

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Still have two. Wish I kept the other 3. Cash cow with no government interference


Why not buy more today? No deals?

There’s no deals anywhere. Just sold my apartments in Sacramento. Nowhere to put money. Tons of cash from REITS searching for deals.

PSA anyone?

I would rather build my own.


What’s PSA?

If you want to do 1031, you don’t have much time

Public storage REIT
Hasn’t been lucrative since 2016


A small self storage in SoCal. 4.37% cap. Asking 2.3M.

Self storage in Vacaville, asking 9.8M.

PSA has been on a huge run up. Guessed wrong on that one. REITS are all benefiting from lower interest rates

Very interesting


This short video breaks down the economics of operating a self-storage facility pretty well.

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Here Nick breaks down the numbers of a real-life deal.


I have always loved self storage. Every deal I ever did was a home run.
But I was always just a passive investor with a professional partner. Never wanted the management headache. Self storage is a retail business plus RE. A different animal than multi family.

I agree to the fact that self-storage investing is indeed a lucrative opportunity for those in the industry. The constant demand for self-storage, even during difficult economic times, provides investors with a steady source of passive income. Furthermore, the ease of management of these facilities, combined with the low-maintenance approach, makes self-storage an attractive investment for those who prefer a hands-off approach in real estate. Overall, self-storage investing can be a smart and profitable choice for real estate investors seeking stability and profitability.

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