Being a landlord is extremely competitive so it is important to find every way you can in order to beat your competitors and become a landlord that is using every advantage they can.

In this article, we discuss the topic of self storage and how landlords are benefitting from owning it and using it with their tenants. This is a fairly unconventional method for having an advantage in a property business because other methods often involve what goes on within a property rather than outside.

So let's explore how we can use this feature to gain an advantage in the marketplace and provide a better experience for tenants.

What is self storage for landlords?

Self storage for landlords is storage that landlords use either for themself or to help out their tenants. The storage can be small scale with only room for a few small pieces of furniture or it can be a lot larger. Landlords should also bear in mind the location of the storage and how far away it is from their property and their letting agent or property manager partners. 

For instance, a letting agent in London will want to have the storage located nearby as if they offer a full property management service for their landlord, this will be most convenient as they will be dealing with tenants and the movement of items.

Strategic placement can mean it is more effective at serving the purpose the landlord bought it for. As an example, if self storage is being used to help students move around because they don’t have a lot of space, then buying self storage nearby would be ideal.

Why is self storage important for landlords?

To begin, it is vital to comprehend why storage is important in the first place. From bringing in additional cash flow to the fact that it makes a tenant’s life easier and they are more likely to stick around.

Landlord-owned self storage

Landlord self storage offers property owners a perfect opportunity for additional cash flow. This works by the landlord providing storage units on their properties that can be bought or released by tenants so landlords can generate additional income from tenants utilising these spaces. 

This creates a reliable source of revenue that supplements the income from the rental properties so that with minimal investment, landlords can leverage existing space to maximise profit. Oftentimes, it is just a case of hiring a locksmith to introduce secure doors or locks on the storage space available and then upselling or advertising this space to tenants.

If this is done in the right way, it will enhance tenant satisfaction, leading to increased tenant retention rates as tenants will have all of their needs met. In addition, this diversification of income helps landlords mitigate risks associated with market fluctuations. If the worst case scenario comes and tenants do not want to pay for storage solutions any more, they can always rent out their additional storage to other people who aren’t tenants to increase the rental yield when they calculate rental yield.

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Makes a tenant’s life easier

A tenant may need a storage solution throughout their tenancy and landlords provide that simply makes their life easier. For instance, if a tenant is being moved between properties by the landlord or simply needs additional storage space, having access to on-site storage offers a few benefits. 

For students, (who often experience frequent moves and have limited space in their accommodations), having a storage solution can enable them to store items such as instruments, spare furniture, equipment for their course and belongings they are bringing from home.

Students often travel across countries in the UK for university with a lot of their items. And because of how their circumstances may change from year to year and how they want to have accommodation as close to where they need to be within the university as possible, storage may be ideal in this sense. Students will be able to have their storage and belongings close by without having to upsize their room or accommodation.

This tends to increase convenience for students and provide peace of mind that they have all their belongings close by and they are safe, allowing them to transition between properties with ease.

Easy to move furniture between properties

If a landlord is a multiple portfolio landlord and they have a lot of houses spread out over one close area, then it may be a wise idea to have a storage facility nearby where any additional furniture or items can be stored. 

For example, a landlord that has 10 or 15 homes located in one place in the UK such as in Coventry for instance may benefit from some localised storage in the city of Coventry so that when they have a furniture delivery they can store it there and easily distribute furniture between properties as furniture needs replacing and the needs of their houses change as tenants move in and out.

In this way, a landlord doesn’t have to have a property that is overcrowded and they can plan ahead, perhaps even offering storage to tenants for an additional cost as they move in or out of their property if the place they are renting is unfurnished.

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Makes renovation easier

Renovation is often an inconvenient process for tenants but it’s a necessary part of being a landlord and something that often happens as a result of the property needing general maintenance rather than it being something the landlord wants to do.

As a result, with a storage solution, the landlord can reduce the disruption for tenants by allowing them to move furniture or items to nearby storage while works are being carried out.