More and more people are opting to downsize to simplify their lives. For example, baby boomers were the largest generation until 2021 when they were passed by millennials. Those baby boomers are selling their large family homes now that their children have grown up and started lives of their own. Millennials are also choosing a more simplistic way of living, often opting for microapartments instead of committing to 30-year mortgages. Many of these millennials are also choosing apartment living because they’re open to moving around the country in pursuit of a dream job while also fulfilling their travel dreams.
This surge in microapartment popularity is great news for real estate investors on multiple fronts. Obviously, the fact that millions of people are opting to live in smaller spaces means that you can get even more “bang for your buck” from your apartment complexes. While you may not be able to offer multi-bedroom apartments that cover a thousand square feet, that may not be what potential tenants are looking for today.
The fact that renters are opting for smaller apartments also opens up the potential for additional revenue streams. If you’ve fallen into the trap of thinking that the only way to make money is to charge rent, charge for parking, and offer laundry services, you may be missing out on another potential money maker.
Many landlords are also getting into the self-storage business, thanks to companies like Max Space Storage. Max Space Storage offers many different options, meaning you can have free-standing storage units in the parking lot, upgrade your facility’s basement, or any other unused space. These storage units are ideal for older and younger generations looking for smaller living spaces but may not want to give up most of their belongings.
Let’s start by looking at those baby boomers leaving their spacious single-family homes and downsizing for the later years of their lives. Undoubtedly, those potential tenants have many items they don’t want to part with just because they’re moving into a smaller space. However, it’s also impossible to pack a lifetime of mementos into a microapartment. Sentimental attachment is real, especially when you think about family pictures, souvenirs from vacations, and other items parents want to hold onto forever. When you can offer onsite self-storage to these couples, your apartment complex becomes even more attractive.
Additionally, millennials who are moving out on their own may not have room for everything they own in their first microapartment. They may not want to sell everything they hope to use in a single-family home in the future, so they’ll need to store it somewhere. Those young people also have items that they are holding onto for sentimental purposes.
Finally, it’s important to note that self-storage units don’t only provide a safe place to keep Little League trophies, family heirlooms, and pictures. Self-storage spaces also allow people to enjoy a hobby without cluttering up the already tight space in a microapartment.
Offering onsite self-storage spaces is a great idea for landlords. A 2022 report indicates that self-storage is a multi-billion-dollar industry, bringing in more than $39 billion every year! Additionally, the self-storage industry grew by more than 900% between 2012 and 2021. If you can get even a fraction of that business, you can significantly increase the money you’re making from your investment properties.
Potential tenants will be drawn to an apartment complex that allows them to store their items onsite. This is especially true if you own an investment property in a large metropolitan area where the process of getting from Point A to Point B can be difficult.
Depending on the layout of your apartment complex, you can decide what type of self-storage units work best for you. Max Space Storage offers a variety of options for landlords, including different-sized units, units that can be set up in vacant parking areas, and the ability to turn an unused basement into a self-storage facility.
