Page 40 - IreitEbook

The perks of leasing out storage space Or so it seems to be working for self-

is that the units themselves are simple storage REITs right now.

structures that require little capital input
WHAT YOU NEED TO
other than what’s needed to create and
KNOW ABOUT
maintain the structures and parking lots.
MORTGAGE REITS
So they’re both cheap and efficient to run.
All the real estate investment trust

The downside is that they’re rented out on types mentioned above are types of

a month-to-month basis, which can create equity REITs. They offer up physical

volatility in everything from rental rates property and physical buildings in

to rental availability. In addition, the fact exchange for rental fees.

that they are so easy to build and maintain

makes them prime victims of oversupply. As discussed in Chapter 1 though,
mortgage REITs, or mREITs, are

Partially due to this, many small self- different. They bankroll equity

storage companies have been swallowed REITs directly or indirectly, acting as

up by bigger REITs. This has led to REIT-specific financial institutions

better management of demand. The less who’s only income (or the vast

competitors there are, the less infighting majority of such) comes from those

there will be.

40