Consider Setting Up Self-Storage Facilities on Land that You Own
There are many sound reasons to invest in land. Insurance costs are low, or even non-existent. Land costs very little to maintain – there are no heating bills to pay or windows to repair. And as a smart real estate investor once said, “The best thing about land is, it can’t burn down.”
Those are all good points. Yet the fact remains that owning vacant land does cost money in the form of property taxes. So, what is the best way to generate some income from land that you are holding until you can sell or develop it?
If the land you own is in an urban location, one option is to lease it to a company that owns and operates parking lots, or open a parking facility of your own. If your land is in a more remote location, another option is to open a self-storage facility. In recent years, many real estate investors have discovered the value of storage facilities, for reasons like these.
Self-storage centers . . .
- Are relatively inexpensive to build and maintain.
- Can be staffed with employees who do not require extensive training or skills.
- Offer good profit potential, provided they are located in areas where there are enough customers.
- Are recession-resistant businesses. In fact, self-storage centers can be even more profitable in areas where most people rent properties, not own.
There are other reasons to convert the vacant land that you own into a self-storage facility. Since you will be building a management office for the storage business on the property anyway, why not let it do double duty as the office of your real estate development company? Of if you are a young investor who is just starting out, you can build a caretaker apartment on the property, live in it, and cut your living expenses to a minimum.
To learn more about self-storage facilities, visit the Self Storage Association online at http://www.selfstorage.org/