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Dangers of Self Storage Facilities Thieves: Simply put, thieves lurk where there are valuable items and an absence of people. Live-in Tenants and Pets: Some people, due to unforeseen circumstances, have started to live in their storage units.

Types of possible hazard you'll need to consider include: goods falling from shelving or racking. someone falling when climbing on shelving. stock or materials blocking fire exit routes. accumulations of used packaging. poor storage causing increased manual-handling risks, eg putting bulky items above head height.

10x10 self storage units can hold the contents of up to three rooms total. A 10x10 unit is a good size for the stuff found in two bedrooms, an entire family room or a modest one- or two-bedroom apartment.

This weak security makes self storage facilities an easy target. In California alone, one study conducted by CBS 5 a decade ago showed 56 break-ins at 38 franchised self storage locations in just two years!

The most overlooked self storage risks include theft, fire, break-ins, hidden costs, inadequate surveillance, and environmental risks.

In 2001-2023 the average return on self-storage was 20.87%, and in 2006-2021 it was 18.76%. With numbers like this, you can see why new self-storage (and rehabs of legacy properties) are gaining the attention of investors. Many will select self-storage as an investment because it can be an inflation hedge.

In our opinion, yes, it is, as long as you do it right. There are several factors to back up this viewpoint as well. For one thing, new self storage businesses have a 92% success rate. A storage facility owner may expect an average profit of $184,500 in one year.

Passive Income and Tax Benefits Self storage is a great source of supplementary income. As a passive investor, you don't have to put any time or energy into understanding self storage operations. You can relax, collect stable income, and reap additional tax benefits stemming from real estate investment.

For one thing, new self storage businesses have a 92% success rate. A storage facility owner may expect an average profit of $184,500 in one year. Naturally, the potential payoff for each storage unit facility will vary depending on the facility's size, local rental market, and efficiency.