Are you paying a monthly bill to store your belongings that you don’t have room for?
How long have you been doing so?
I recently talked to a friend who first rented a storage unit a few years ago when she moved back in with her parents. She was proud of how much she has eliminated from the storage unit lately but wasn’t sure about getting rid of some of the larger furniture. She feared how much it would cost to buy a new living room set if she moved into her own place. That’s understandable at first. However, when we added up the $100 per month she’s been paying for over four years, she realized she’s spent around $5000 on storage.
Therein lies one of the major pitfalls of renting a storage unit. Their purpose is supposed to be for short-term usage, like during a move for example. Unfortunately, about 9% of American families rent storage space and more than half of them have been renting for over a year.(1) Keep in mind that the $100 per month my friend was paying is hardly the upper limit for storage costs. Depending on the size, monthly rent can reach as high as $150 or more.
The self-storage industry has a history going back to England when banks began storing valuables for customers going on long voyages. The trend grew until vaults were overflowing and banks began using storage space at moving companies. By the 1850’s, warehouses were being built just for storage of personal items.(2)
The first modern self-storage units in the United States were built in Texas in the 1960’s and the concept spread.(2) Now, there are about 50,000 storage facilities in the U.S. and the industry generates around $38 Billion in annual revenue.(1) Clearly, we have a lot of important things that we need to keep even though we can’t make room for them in our homes.
When Paying for Storage Makes Sense
I don’t want to bankrupt the self-storage industry. I do think they serve an important purpose in some cases. However, I want everyone who is spending their hard-earned money on storage to weigh the cost against the value of the items being stored.
With that in mind, here are a couple cases where it might make sense to rent storage.
1. In between moves, especially when buying or selling a home.
Changing apartments can sometimes be a problem if your lease is up at one and the other won’t be ready for a few weeks. Store everything you don’t need in the short term until the new place is ready. The same situation can arise when buying and selling your home.
If you’re trying to sell your home and you have a lot, I would first advise you to purge, and then purge some more so you don’t have to rent storage. However, if you want to stage your house for sale you may still need to remove some things temporarily to make it look better. First, see if you can store a couple things in a friend’s or relative’s basement though. Just don’t overstay your welcome.
2. Storing something valuable that you can only use periodically
There are limited cases where this will make sense. Say you have a valuable motorcycle or something larger that you can only use seasonally. It might make sense to protect it from the elements during the winter if you can’t make room for it in your garage, assuming you have one. This is also common for boats, RVs, etc.
3. For business purposes
If you own a business and need space, a storage unit can be much cheaper than renting a larger office to store records or equipment for your business. This makes sense especially for contractors and lawn care companies.
That’s about all I can think of. There may be other specific situations where it makes sense but remember, every payment you make for storage can make the contents less valuable.
The bottom line is if you have no other choice but to rent storage, you want to rent the smallest one possible. Purge as much as possible first and then empty out your storage as quickly as possible.
Copyright Dave Lubke and www.davelubke.com, 2022
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