A shaky economy makes everyone nervous. Even if the economy goes up and down in cycles, even if you know the markets will recover, and even if you're still turning a profit now, bad economic news can make you think twice about investing in advertising, expansion, or renovation. But here are three reasons to stay the course:
Individuals use storage units more.
Whether people get laid off and need to switch to an apartment or smaller home or they are in the process of moving to stronger job markets, self-storage units are a valuable resource for them. It lets them store their possessions as they move and see if a new job is worth a complete relocation, and it helps them put off having to get rid of valued furniture and old possessions. Advertise monthly contracts and reach out to moving companies to see if it's worth working together to keep this market.
Shrinking businesses will also use your units.
During strong economies, businesses expand. They buy new computers, get new furniture, and have a lot of new customers that generate paper records. Once the economy takes a downswing, they still need space for all those records (usually for seven years or more).They also need room for furniture, cubicle walls, and more if they're letting some of their office space go. Offer digital storage services, too, and emphasize your units' security.
Storage units are much less likely to fail than other real estate investments.
Real estate can be risky business, but that's not the case with storage units. Historically, storage units in states ranging from Louisiana to Colorado had a low failure rate of eight percent during recessions, which was less than a sixth of the rate of real estate ventures like multifamily units and offices.
One of the hardest parts of property management isn't just customer relations and maintaining the property; it's making the call to keep trying to find new customers and investing in the business. But with storage units, it's an easier call to make. Go to Right Move Self-Storage for ideas on managing your units.