Self storage is an abbreviation of self-service storage. It refers to a service where individuals and businesses can rent secure storage spaces on a short term (month-to-month) basis. Self storage facilities offer safe and secure spaces to store valuable items.

Self storage has become an essential part of today’s world, offering a convenient solution for a range of needs, including space constraints in the home, life transitions, house transitions, disruptive events, business requirements and everything in between.

Types of Self Storage

Whilst traditional self storage relates to individual storage units, the sector has broadened to cater for the diverse needs of customers.

Some of the common type of storage options include:

1. Personal Storage
   Personal storage is designed for individuals or families to store their belongings and is typically offered as a storage unit. People often use personal storage when in between houses, moving locations, decluttering, renovating or with a change in family dynamics. A storage unit can sometimes be an extension of the home to safely store, bulky, untidy, seasonal, or infrequently required items close by.
   
2. Business Storage
   Businesses use self storage to store stock, for overflow at peak periods, for document storage, and for storing equipment. Some businesses access their storage unit every workday. In uncertain business periods, renting a self storage unit can be quite advantageous to businesses given the affordable and flexible nature, plus the low-cost sign up. Many self storage facilities have meeting rooms and/or dispatch services to cater for commercial customers.
3. Vehicle and ‘Bulk’ Storage
   Vehicle storage can be internal, undercover or external. Various spaces are offered to suit cars, boats, caravans and RVs. ‘Bulk’ storge relates to sections of a large warehouse that can be occupied, usually by businesses, at a reduced cost to a storage unit. It also allows for flexibility of occupied areas.
   
4. Mobile Storage
   Mobile storage units are delivered to the customer’s location. Once packed, they are transported to a secure storage facility or to another location specified by the customer. Mobile storage is growing in popularity as it is considered to be a combination of a removalist and storage facility.
5. Wine Storage, Gun Storage and Safety Deposit Boxes
   Unique in their own right, these specialty services cater specifically for the goods being stored. Wine storage can be occupied by the locker (a compact unit designed to store a personal wine collection), in a larger storage unit for pallets of wine, or as ‘bulk’ storage which typically suits commercial customers. The wine storage room, or facility, is climate controlled. Other types of specialty storage include gun storage, which is extra secure to meet Government regulations, and safety deposit boxes for storing valuable items and documents.

Reasons for Using Self Storage

Self storage has become a popular solution for a range of needs due to its convenience and versatility and convenience. The most common reasons for using self storage include:

1. Life Transitions
   Events like moving, downsizing, marriage, divorce, or the death of a loved one often create the need for temporary storage. Self storage provides a safe space to keep belongings during these transitions.
2. Decluttering
   The current trend of minimalist living, smaller housing, and the need for more space at home, perhaps for a home office or visitor, have given rise to self storage demand. Self storage is a convenient, affordable solution for creating more space at home.
3. Home Renovations
   During renovations, homeowners often need to move furniture and belongings to protect them from dust and damage. Self storage provides a secure, temporary solution. With the renovation trend throughout the pandemic period, home renovations was one of the most frequent reasons for using storage across 2021.
   
4. Seasonal Needs
   Items like Christmas decorations, golf clubs, snowboards and skis, and even out-of-season wardrobes can take up valuable space at home. A storage unit offers an off-site solution for storing seasonal belongings close to home.
5. Business Efficiency
   Companies use self storage to store stock, documents and equipment, saving money on more expensive ‘public-fronting’ spaces. It’s also a flexible option for businesses dealing with fluctuating inventory, seasonal demands, or business uncertainty.
6. Travel and Student Needs
   For people going on extended overseas trips, a secondment, or for students over summer breaks, self storage provides a secure place to store belongings until they return and avoids the need for moving or departing with belongings.
   

Self Storage as an Asset Class

Beyond its utility for individuals and businesses, self storage has emerged as a highly attractive asset class in the real estate market. It offers investors strong returns, scalability, and resilience during economic fluctuations.

Key Features of Self Storage as an Investment

1. Low Overhead Costs
   Self storage facilities are relatively inexpensive to build and maintain compared to other real estate properties like office buildings, hotels or shopping centres.
2. Steady Cash Flow
   Customer demand for self storage tends to remain stable, even during economic downturns. Disruption can even drive demand for self storage as it can be an immediate solution to a unexpected problem. This stable demand makes this asset class defensive in testing times and less sensitive to market volatility.
   
3. Scalability
   Self storage facilities can often be expanded to meet increased demand, generally without a significant increase to operating expenses.
4. Diverse Revenue Streams
   In addition to storage unit fees, there is the ability to generate additional revenue through ‘other income’, from insurance, merchandise, vehicle hire and ancillary services.
5. Resilience During Economic Cycles
   The self storage industry has shown resilience during recessions and economic downturns. In tough times, people and businesses lean on self storage as a short term solution until their situation improves.
   

Self storage is much more than just renting extra space—it’s a practical and versatile solution to a wide range of personal and business needs. With its range of services, self storage meets the demands of modern lifestyles while also offering an attractive and resilient investment opportunity. Whether you’re looking for a secure place to keep belongings or if you are seeking a stable addition to your investment portfolio, self storage is one to consider.