19 Pros and Cons of Owning Self-Storage Units

The self storage business has shown continuous industry growth. It requires very low maintenance, yet provides high return profits. From individuals to business owners, everyone relies on the storage units to store their valuable items. So this business is always in high demand.

Today we will tell you all about the self-storage business, the pros and cons of owning self-storage units, why it's a profitable business, and why it can be risky sometimes.

What is a Self-storage Business?

Self-storage is the shorthand of self-service storage. It's basically an industry that offers storage spaces and charges a fee for it. Their storage space can be rooms, shipping containers, lockers, and so on.

People who have to downsize, renovate, or move from one place to another take help from self-storage. But I found that individuals and businessmen are the most common customers here.

Self-storage's security is worth trusting. They will keep your items very secure. Like, the tenants will use their own lock and key and won't give casual access to employees. You will even have options for unit sizes and duration to store your items. But you have to take rent on a month-to-month basis, because that's mostly available.

19 Pros and Cons of Owning Self-Storage Units

Owning a storage unit sometimes gives me butterflies and sometimes calls it a day for me. Well, I am going to share with you some pros and cons of owning a storage facility that I faced during my journey.

Pros of Owning Storage Units

1. Steady Cash Flow

Storage facilities have a great demand, especially in urban areas. So you will need it in every season. And this provides a consistent cash flow in the business.

2. Low Operational Cost

Storage units require less operational cost compared to real estate investment. Here, tenants are mainly responsible for maintaining their own storage space. So they can go with minimal staff. Besides, there is no cost for utilities like gas, electricity, or water.

3. Security and Protection of Assets

Your assets are always going to stay safe in the storage units. Thanks to their top-tier security features, like 24/7 surveillance access, control systems, and alarm systems.

4. Multiple Revenue Streams

Giving rent to storage units can open many business opportunities. Such as selling packing supplies, renting out vans or trucks, offering insurance policies for the stored items and so on.

5. Flexible Working Hours

You can set your timing in your storage business. For example, if you want it to remain open only during office hours, you can do that. But if you want it to stay open 24/7, you can do that as well. Some owners even hire workers to do the job of the tenant.

6. Increases Network

Starting from individuals to business owners, everyone has to store their items. Especially the inventory and records that are related to financial issues will have less risk of being lost. And this diversified customer base gives a chance to grow your personal network.

7. Scalability 

Today, storage businesses are scalable. How? If you want, you can open more than one unit for the facility. Also, you have the option to invest in properties and expand your business.

8. Tax Benefits 

As a storage owner, you can take advantage of tax in your business. For that, you have to show your operating expenses, property taxes, mortgage, and depreciation. Only then can you get a tax deduction.

9. Requires Less Maintenance

Storage units don't require renovations or repairs like real estate ventures. They are always ready for occupancy.

10. Resistant to Recession

Self-storage businesses are resilient even in an economic downturn. It has consistently shown positive returns and increasing demand.

Cons of Owning Storage Units

1. High Competition 

As the demand for storage units is increasing, the competition in the business is also increasing. Then its occupancy rate can have ebbs and flows for competition, market fluctuation, etc. So it's important to cope with technological advancement and market changes.

2. High Investment

The upfront cost of owning a storage facility can be high. Like, you have to spend on construction, land acquisition, security systems, etc. And the cost can add up for the new investor.

3. Tenant Issues

There is a chance that tenants are not paying on time. Then individuals who want to rent from you can come out on eviction. So, check their record to see if they used to pay their landlord on time and were loyal customers.

4. Ongoing Cost

All those storage facilities don't need high maintenance, but they need constant upkeep to stay in the market. For example, you have to upgrade your security systems, do repairs, renovations, etc.

5. Location Can Be The Problem

Many storage units operate with low capacity because of their location. You can only attract potential tenants if your location has high visibility and high traffic.

6. Fluctuation in the Occupancy Rate

Right now, the occupancy rate in the self-storage industry is 90%. It's a difficult target to hit because unexpected life changes are inevitable now. That's why many storage units are giving up on their business.

7. Expensive Security

The protocols and security features to keep the stored items safe can be expensive. You will need cameras for 24/7 security, climate control units, doors that have keypad access, and so on. Only then will customers rely on you for their items safety.

8. Large Commitment

Investing in a storage business is a large commitment. You make a high investment here. So you have to implement the targeted marketing strategy, manage your staff, ensure good customer service, and many more.

9. Market Saturation

Market saturation can occur when there is an oversupply of storage facilities in a specific market. This decreases the profitability and the occupancy rate. That's why it's important to assess the supply and demand of storage facilities through market research.

Is Self-Storage a Good Business?

Self-storage is indeed a good business. With low maintenance, it offers higher returns on investment. If you have an adequate facility size, a populated location, and perform effective management, you will surely succeed in your self-storage business.

Right now, the success rate of storage has reached 92%. And the annual income from it ranges from $100,000 to $1,000,000. In 2025, the United States received more than 5.4 million new applications for the cell storage business.

Those who are investing in the self-storage business are seeing a 10% to 20% annual return on their investments. Then the profit margin in this industry reaches 41%. So, just imagine how good your self-storage business can be if you maintain it properly.

Owning a storage facility means having a diversified income stream. Like providing services with insurance, locks, moving supplies, and many more. All in all, self-storage is a good business that opens many income streams, too.

Risks of Investing in Self-storage

What security measures are essential for a storage facility to ensure tenant safety?

Self-storage businesses can be at risk, especially when they face economic downturns, security breaches, and regulatory challenges. Don't worry; you can cope with these challenges easily. All you need to do is make strategic plans to survive the impacts of the downturn.

And you have to stay competitive and focus on the customer experience. Also, explore the new markets and new site acquisitions to attract potential customers. Then ensure your employees details and provide utmost security to your unit.

Is Mini Storage a Good Investment?

The operating cost with a self-storage facility is low, as it gives a high profit margin. The amount you will invest in the storage facility will give you an effective return. If it's a mini storage, your investment can be low while you can expect a good profit. Thanks to its consistent cash flow, high demand, and diversified income streams.

Final Thoughts

There are pros and cons to owning a self-storage unit. But I think the self-storage unit business is still profitable. Because it hardly reacts to economic downturns and is always in high demand. It means you get continuous cash flow, resulting in a high profit margin.

As of 2025, the United States has more than 52,301 self-storage facilities. So I think you should also give a try at establishing your own self-storage business. No doubt it will help you generate revenue if you implement proper management.