Secondly, life happens. And even for the most joyous occasions, such as newlyweds moving in together, the act of moving goods into a storage units never reaches the “Top 3 Things I Want To Do Today” list. Likewise, when we face more challenging/one-time life events - divorce, death, and demolition (home remodel, salvaging items post flooding, etc.) - a storage unit is the perfect out of sight, out of mind destination to literally clear your physical and mental space to free yourself to deal with the emotions of this significant life event.
FEATURE
Finally, when life is “normal” (and also when life is not so normal) the monthly cost of a storage unit is almost always less than your mortgage/rent, health insurance, car payment, student loans, mobile phone, and even gym membership. The monthly payment is quietly deducted from your bank account and life moves on. When times are good, storage is completely out of sight out of mind. When life throws you a doodie (i.e. surprise layoff, overbearing mortgage), the storage unit becomes even more valuable and essential, with non-essential expenses, such as the gym membership, getting cut from the budget.
Can I Do Storage?
This is purposefully a loaded question. Putting on your consumer hat, yes, of course, you can - and should - rent a storage unit. Jokes aside, it is very likely that you and at least 10% of your personal and professional network currently, or in the recent past, experienced storage as a customer.
Storage, Baby!
Why Storage is Here to Stay By Dan Kryzanowski, Rocket Dollar
I
was sitting in Bryant Park on a picture perfect day in midtown Manhattan, enjoying the spring petals and devouring delicious mango and my first “dirty dog” from an NYC street vendor in nearly a decade. While I did my best to enjoy the moment and stay in a zen-like state, I broke down and finally (ahem, after 10 minutes) pulled out my iPhone to check my email.
It is also very likely that the other 99% of storage unit renters casually dismissed the notification and unconsciously weighed the joys of carrying on with their day vs. spending 4 hours on a Saturday to move their precious belongings to another facility. In the aggregate, in one day, with one simple communication, the facility owner raised revenue by 10%. Welcome to the wonderful world of self-storage!
Ten or so emails in, I received a brief email from my storage facility informing me that the price of my 5’ x 5’ would increase by $5. Considering that my dirty dog cost an Abe Lincoln, this email (and subsequent postcard to my house) quickly became an afterthought. Way back in Austin, the store facility owner quietly smiled as my rent increased 10% - again - for the third straight year.
It is very difficult for us as humans to turn off our ‘fight or flight’ response and dismiss the necessity to store and hoard food and other essential items. While we are neither being chased by lions, tigers, and bears (oh my!), nor walking miles or fighting fellow tribes to secure our next meal, these actions, desires, and needs are hardwired into who we are as homo sapiens.
18 Originate Report | June 2019
Why Storage?
As a multi-asset real estate investor, there are a fair number of opportunities for you to do storage via an investment into single property or syndicate. Track record and transparency are the two primary items I demand before writing my first check. It is also imperative that the property and manager has access to 21st century technology, from electronic gates and cameras to online booking and inventory management system. Should you “do” storage as an owner/operator? This is difficult to gauge and a very personal decision. While storage on the surface seems like a no-brainer (i.e. no tenants, easy to transform a 5x10 into two 5x5s), the devil is in the details and may not pop up until the first or second calendar year. Stay tuned throughout the summer, as the industry’s top players offer very candid takes on the state of the market and what it takes to be successful as an investor or operator.
ABOUT THE AUTHOR:
Dan serves as EVP at Rocket Dollar and Capital Partner for Pinnacle Storage Properties. Dan currently rents two storage units for his non-profit’s supplies and high school letter jacket and VHS tapes from his glory days growing up in Scranton, PA. He also “does” storage as an investor in multiple properties across Texas. Visit with Dan at Captivate in Las Vegas.
CONTACT: dan@rocketdollar.com |
512.779.0843
