The Great Recession may have been a financial disaster for many but it also created opportunities for others. Some investors made money by buying foreclosed properties and renting them out while some others went into the storage unit business.

What Makes Self-Storage Facilities Recession-Resistant?

Investing in a self-storage fund during a recession can provide investors with a unique opportunity to benefit from the growing demand for self-storage facilities and potentially earn stable income and capital appreciation. This is because self-storage has been one of the real estate sectors that has been relatively resilient to economic downturns. Here are some factors that make self-storage facilities recession-resilient:

Necessity-Based Demand

The need for self-storage facilities is constant, regardless of the state of the economy. People will always need to store their belongings, whether they are downsizing, moving, or simply need extra space. This results in a consistently high occupancy rate for self-storage facilities, providing stable rental income for investors.

Low cost of entry

The relatively low cost of entry compared to other types of real estate investments makes self-storage funds an accessible option for investors, especially during times of economic uncertainty when larger investments may be seen as riskier.

Diversification

 Investing in a self-storage fund provides investors with a way to diversify their portfolios and potentially reduce their overall investment risk. This is especially important during economic downturns when other investments may be struggling.

Stable returns

The self-storage industry has consistently grown and provided stable returns for investors, even during difficult economic times, making it a potentially attractive option for those looking for a recession-resistant investment.

Location

A self-storage facility in a prime location with a strong customer base is more likely to weather an economic downturn than one in a less desirable location.

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Conclusion

In the end, these investment units can provide a great way to make money during troubling economic times. They are good investments with relatively low risk and high return.

Invest in a professionally managed, vertically integrated self-storage fund focused on high-growth self-storage facilities in the fastest-growing markets of the Southeast.

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