There seems to be a concern that apartment storage solutions could be the cause of the self-storage industry to collapse and fall. Over the course of several decades, apartment complexes have been choosing to include, or install on-site storage facilities for the tenants that live there. As a result, many of the people that once paid for storage in self-storage facilities have opted to save that money by using the storage bins that the complex that they live in offers. The more people that stop using off-site storage facilities the more money the facilities lose. Is this an issue? Let’s take a closer look.
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Generating Substantial Revenue
The savvy property owners that have done the research and taken the steps in order to implement on-site storage bins for their tenants have found that they can bring in a substantial amount of money each month on top of what they already get for renting the apartments out. In fact, if you do the math, they can not only save their renter’s money but cash in on the money that they have been paying for storage.
Most tenants will spend upwards of $100 per month at a self-storage facility. If we take the low number of $100 and multiply it by 100 we end up with an extra $10,000 per month if the landlord installs an extra 100 storage units. Since $100 is a low number, it is safe to assume that the landlord can charge between $100 and $200 per month for added storage.
What this means is that it is very tempting for an apartment owner to install on-site storage for the renters. Although it is good news and smart business for the landlords, it is not such a good thing for self-storage facilities.
Thinking Outside of the Box
The self-storage industry will now have to think outside of the box in order to stay in business. They might have to come up with ways to entice renters to come back to an off-site solution. The techniques would have to be anything from offering promotional deals for the people that are looking for storage, raising the prices for the renters that stay, or lowering prices in such a fashion that they can compete with the apartment owner rates.
The Impact of the Pandemic
One of the more silent struggles of the pandemic is the toll that the unfortunate economical events caused for the multifamily apartment industry. In many cases, people that had high rents could not afford to stay in their apartments so they were forced to move in with friends or family in order to be able to have a place to live. This course of events caused the apartment industry to have an all-time record of vacancies in their complexes, which in turn, wreaked havoc on the multifamily profits for the year.
Now that the world is slowly beginning to return to normal, people that have been stuck living with other people are looking forward to having their own places again. Now that they have the money to move they will not have to be picky about the apartments they have to live in, so most of them will prefer to have apartments that already provide on-site storage. The apartments that do not offer storage facilities on the campus, will not be nearly attractive as ones that do.
What Will Happen
The United States has had its fair share of hardships and struggles. Thus far, the people have bounced back from calamities again and again. As far as the industries go, over the years all businesses have to shift and adapt to the ever-changing ways of the planet. When one type of business becomes obsolete, a fresh new way to branch from that business always appears. Whether or not any particular storage facility will fail, or continue to thrive will be based on how the management chooses to move forward.