Self-storage differs from other asset classes insofar as it is the only kind of real estate (other than parking) where your tenants failing to pay rent allows you to both lock them out of the property without an eviction notice and sell their remaining property to make good on their debts: after 6 days a storage unit can be locked, and after 90 days the property inside can be sold to recoup costs.
This unique aspect of self-storage makes it a very stable asset class, unlike habitation real estate which can be highly volatile during periods of national economic crisis when rents often go unpaid. Because of this, financial institutions love to lend for self-storage properties, as they are highly recession resistant.
In addition, turnover costs in self-storage are very low. While a turnover for a habitation real estate unit may cost up to $1300 to clean, repair, and cover lost rent, turning over a self-storage unit takes only an hour with a leaf blower or powerwasher. The simplicity of a concrete slab has its advantages!
