Top 5 Self-Storage Problems

There is one industry in the United States which, based on its performance since the economic recession of September, 2008, Wall Street analysts consider to be “recession resistant”. It’s been one of the fastest-growing sectors of the commercial real estate industry for the last 40 years, and one that generated more than $24 billion U.S. revenues in 2013.

You’ve probably guessed it by now: yes, this is the self-storage industry.

Some mind-blowing statistical data

The pace with which the self-storage industry has developed is extraordinary – the first billion square feet of space was built in 25 years, while the second billion square feet was added in just 8 years (1998-2005). According to the fact sheet published in 2013 by the Self Storage Association, out of 59,500 self-storage facilities worldwide (approximately 3,000 in Canada and 1,000 in Australia), there are over 52,500 primary and secondary ones in the United States. In reality, this means that currently 9% of all American households (around 10.85 million of the 113.3 million US households) rent a self-storage unit.

Also, the total self-storage rentable space in the U.S. is 2.3 billion square feet (or 78 square miles) – an area more than 3 times larger than the size of Manhattan Island.

Benefits of self-storage

Under certain circumstances, having an extra space at your disposal (usually 24/7) can be hugely beneficial. For a fixed monthly fee you rent a storage unit of a suitable size where you are free to put any household items you don’t need at the moment but will do so in the near future.

Self-storage sounds like a great idea, doesn’t it? Yes, it often is a very practical solution to having insufficient living space or having enough but over-clutterred one. It’s like having an extra room in your home, or maybe more like a basement or an attic which you can access anytime you want.

Here are the six most frequent reasons why Americans choose to use self-storage:

• Marriage (two households merge into one)
• Divorce (one household splits into two smaller ones)
• Retirement (downsizing one’s home)
• Death in the family (specific items belonging to the deceased person need to be preserved)
• College
• Military deployment

And yet, as convenient a solution as it may sound, self-storage has also some obvious (and some not so obvious) disadvantages, and even a few hidden dangers if this service is abused. Read on to find out the top 5 self-storage problems.

Problems of self-storage

1. Financial drain

Being the mother of all problems, this one is pretty obvious. In general, the monthly rent of the smallest self-storage unit you can get is somewhere between $60-$100 depending on many external factors like location, city, company, etc. The unit size? Storage spaces begin from 5’ x 5’ cells and can go up to whatever space you will ultimately need and of course, can afford. 5’ x 5’ is the size of a typical tiny home closet which may give you a little extra breathing room but will not fit too many of your household belongings, at least not as many as you would probably like. A few well-packed boxes? Sure. A couple of chairs? Why not? Your favorite sports equipment? Bring it in! A dresser? You might pull it off. A mattress set? Well…

Now let’s do some basic calculations. Let’s assume you rent the smallest size available (5’ x 5’) for the lowest price available ($60). This means that you’ll end up paying $720 a year for renting a walk-in closet under the ideal conditions that one, you find a self-storage facility with such affordable prices; two, that the storage space is sufficient for your needs, and three, that the storage unit is secure and not too far from your home.

2. Inadequate security

Security is essential here. After all, these are your personal belongings and although some of them may not be too valuable, your decision alone to place them in storage means that they have certain value for you.

Some self-storage facilities have excellent security – the solid-structured units are climate-controlled and weatherproof, the premises are gated and monitored 24/7 and there are experienced attendants on-site. On the other hand, there are those facilities whose security levels leave something to be desired.

In either case, have in mind that, apart from the price, the security of your rented storage space should be your top concern and the matter that makes or breaks the deal when weighing the presented options. If you have the chance of inspecting some local self-storage facilities beforehand, do it. And remember to request more information on what security measures are taken to keep your possessions from prying eyes and probing hands.

3. Inconvenient access

Sometimes self-storage creates the illusion of convenience but if you look closely under its polished surface, you may find out that certain things are not as shiny as they seemed in the beginning.

Time is a huge factor and rightly so. Before making the final decision to reserve storage space, think of how much time you’re going to need to go to the self-storage facility and then back home. Don’t underestimate the time you’ll spend sorting through your items in the storage room to find the things you need at that particular moment. Also, admit the possibility of losing extra time under unforeseen circumstances, like heavy traffic or jams, bad weather, car issues, etc. The price of the gas your car is going to consume on these round trips should also be taken into account.

Even if the time factor is greatly diminished (let’s say by finding a storage facility that is very close to your place), it’s still kind of annoying to drag your personal items in and out of storage, especially if you do it on a regular basis.

4. Value depreciation

Most self-storage renters don’t think of this issue but as surely as the world turns, it exists. Most possessions placed in storage will depreciate in value as time goes by. Aside from any objects of great sentimental value (which should be kept at home anyway), you may end up paying more for storage than the stuff is actually worth. Therefore, consider carefully your long-term storage investment by comparing the replacement cost of the stored items. For example, you might have paid $1500 for a period of two years to store personal items whose combined value is no more than $1000. Do the math first – it rarely lies.

If you’re using a self-storage facility due to a clutter problem, why not consider resolving the situation by organizing a yard sale for your stuff, selling it online, gifting it to family members, friends or coworkers or just donating it to charitable organizations? A decluttering expert would gladly tell you that if you can store something for years without using it, then you can surely live without it.

5. Stress builder

Out of sight, out of mind, right? Not quite.

In fact, keeping some of your stuff at a self-storage unit usually brings about stress which builds up with each passing month.

There’s this thought in the back of your mind that it’s high time you did something about these stored items and yet you never come around to actually doing it. And regardless of whether the excuse is lack of time, no idea of what to do with your possessions, habitual procrastination, sheer laziness, a complicated mix of the above-stated reasons or even none of them, the thought will continue to gnaw at your conscience each time you pay the storage rent. And the fact that your property can be seized for non-payment of rent doesn’t really help venting some of the accumulated steam either.

As is the case with almost everything, the trick to a happy self-storage experience is to successfully avoid any extremes by finding the golden mean. If used smartly, it can provide a brilliant solution to both well-planned master plans and, more frequently, unexpected transitional situations in our lives. If used recklessly, it can put an enormous strain on your budget and psychological well-being.

So, what will your decision be?