Are You Keeping Things in Storage? It'll Cost You

According to Forbes magazine, the days when storage facilities were thought of as only utilized by hoarders and borderline hoarders have long past.  In 2023, roughly 40% of American were renting a self-storage unit.  That equates to 1 in 5 Americans and Gen Xer’s, (age 40-55) represent 23% of that group compared with 21% for Millennials and Boomers.¹   

Not surprisingly, the main reason for renting storage space is lack of space at home or downsizing. Other reasons include moving or remodeling, seasonal storage and a significant relationship change such as marriage or divorce, and business purposes.  In general, storage provides a cost-effective and secure way to reduce clutter or store items during times of relocation or transition.

Storage units can range in size from a 3 x 5-foot storage locker to a unit as large as 300 square feet, suitable for a small business or an entire home.  However, typically most people rent a 10 x 10-foot unit which more or less holds the contents of two bedrooms.   Although the layout and features offered by storage facilities can vary depending on location, most will provide a sliding door for easy access, a safe, sturdy storage space with metal walls and lockable doors for security.² Most will provide a coded locking system for maximum protection.

What you can expect to pay

Storage units are usually rented on a monthly basis, although some businesses may offer a discount if you sign up for a longer period of time.  The cost of a storage unit can range from $75 to $185 but can go up to $300 for a unit that is 10 x 20 feet or larger.  If you are storing items that can be vulnerable to temperature or humidity such as books, clothing, photographs, antiques or family heirlooms, artwork, vinyl records or even wine, you may decide to rent a climate-controlled unit. Expect the price to increase by $25 to $35 a month.  The average cost to store a vehicle is $210 but varies depending on the size of the automobile. If you are storing a camper or a truck, you will pay more.

Several factors determine the cost of storage in addition to whether the facility is located in a major urban city or a smaller suburban neighborhood.

Availability and seasonality. Since most people are less likely to move or remodel during cold winter months, storage rates tend to be cheaper in the winter when units are in less demand.  Additionally, you’ll find a wider range of units available offered at incentive prices.

Storage unit insurance. Most companies require renters to insure the items they are storing against the possibility of fire, flood, vandalism, or other damage. Companies compute the price based on the number of items stored and their calculated value. You can purchase an insurance policy through the storage company, or you may have coverage through your homeowner’s policy.  If you decide to use your homeowner’s policy, you will need to show proof of coverage.  Keep in mind, if the contents you are storing are valuable or irreplaceable, be sure the coverage offered by your homeowner’s policy is adequate and addresses a wide range of conditions, including the possibility of bankruptcy or insolvency of the business.

Taxes and fees. You can expect to pay taxes based on the allowable rate in your area. Companies may also charge an initial set-up fee or a monthly administrative fee. Most will charge a hefty late fee when rental charges are not paid on time, and you may opt for an auto-payment arrangement to avoid late fees.

Choose the Best Storage Unit for Your Needs

Given all the factors that affect storage costs, ask yourself the following questions to decide what is best for you:

• How much stuff do you really need to store and how long do you plan to store it?
• Do you need regular access to a storage facility that is close to your home? Or should you use a location that is less vulnerable to extreme weather conditions like hurricanes or tornados?
• Do you expect to add items to your storage unit as time passes or will the initial items in storage remain unchanged?
• If you need to store a large amount of items, will you need to use additional resources provided by the company such as dollies or moving vans?

Finally, DO check with the Better Business Bureau in your area to be sure the company you select is reputable and highly rated.  DON’T make the mistake of not inspecting your storage unit regularly. Depending on the company to keep track of your valuables is short-sighted, regardless of whether it is a well-known nationwide company or a smaller local business. Customers who allow months to pass without visiting their storage space can find themselves faced with unpleasant surprises. It is up to you to ensure your property is safe and in optimal condition.

^1.https://www.bdcnetwork.com/one-fifth-of-americans-rent-self-storage

^2.https://www.forbes.com/home-improvement/home/how-much-does-a-storage-unit-cost/

^3.https://www.move.org/storage-units-cost/