If you’re downsizing, between residences or simply have more possessions than space, you’ve likely thought about putting your things into a storage unit.
But convenient as a locked space to stash belongings might seem, renting a unit isn’t always the smartest financial choice.
We understand — you don’t want to let go of Grandma’s china (which you’ll probably never use), and you fully intend to digitize those boxes of photos and clippings … someday.
Still, even with good intentions, a storage unit can become a financial sinkhole. Before you sign on with your nearby self-storage facility, weigh whether it truly makes sense for your finances.
Are Storage Units Worth It?
When you’re deciding whether to store your possessions offsite, consider these seven factors.
1. You’re Probably Paying to Keep Items That Lose Value
Unless you’re storing things that appreciate — like valuable art or a rare comic collection — most items in storage will decline in value. Yet you’ll be charged every month to hold them.
For instance, imagine you put $2,000 worth of household items into storage and after a year those items are worth around $1,600. If your unit costs $100 per month, you’ve paid $1,200 to keep belongings that dropped $400 in value.
And if you repeatedly move boxes that never leave their packing, you’re likely lugging around possessions you don’t really need.
2. The Money Spent on Storage Could Be Put to Better Use
Paying for a storage unit adds another monthly bill — another obstacle to boosting savings, reducing debt faster or investing.
It’s tempting to focus only on the immediate need for a place to put things, but don’t lose sight of longer-term financial objectives.
Think about investing $100 a month at a 6% return instead of spending that amount on storage. After 10 years, that would grow to $16,247.34.
Is handing over cash for a storage unit worth foregoing that potential growth?
3. You Might Miss Out on Earning Money From Your Stuff
Rather than paying to keep items, you could make money by letting them go.
Sell things online, host a yard sale or take items to a consignment shop to get a share of the proceeds. Donating to charity can yield a tax deduction.
You could even rent out items to acquaintances — for example, a neighbor who needs a washer and dryer might pay to use yours.
It can be tough to part with belongings, especially sentimental ones. But the proceeds from selling or renting could buy replacements later when you have room again.
4. Paid Storage Isn’t Your Only Option
With some imagination or help from friends and family, you may avoid paying for storage entirely.
Look again at your home for overlooked storage spots. Could closets be reorganized for extra room, or could your bed be raised to store boxes beneath? Could you add shelving in the garage — or park outside and use the garage for storage?
Asking relatives to keep things temporarily could work too. A friend with a spare bedroom might welcome your bedroom set, and your college-aged niece or nephew might benefit from borrowing the living room furniture for a term.
If you leave belongings with someone, consider drafting a simple agreement stating how long they’ll hold your items and the condition you expect when you reclaim them.
5. Many People Pay for Storage Much Longer Than Planned
When considering a unit, do you have a firm deadline to retrieve your items and return the key? Without a clear end date, a few months of storage can stretch into a year or more.
Data from the peer-to-peer storage service Neighbor indicates the average U.S. self-storage rental lasts 14 months.
Introductory low rates can lure you in, but it’s likely you’ll be paying beyond a month or two. Check your contract: is there a minimum rental period? If you leave mid-month, will charges be prorated?
6. You May Be Tempted to Buy Even More Stuff
Out of sight often becomes out of mind when belongings are tucked away. That can lead you to purchase duplicates of things you already own but forgot about.
And once your living space looks less cluttered, you might feel compelled to fill it again with new purchases.
If you’re someone who enjoys shopping, renting a storage unit could actually encourage more spending.
7. Your Items Could Be Damaged While Stored
Chances are you know someone with a nightmare tale of a flooded or pest-ridden storage unit. That doesn’t mean it will happen to you, but insuring stored items adds extra cost.
When belongings sit unchecked for long stretches, small problems (like a little mold on a cushion) can escalate into major issues (like needing to toss a whole sofa).
Also, if you don’t handle the move and packing yourself, you might not discover damage that occurred during transit until months later — meaning you could be paying to keep ruined items without realizing it.
Casey Morgan is a senior writer at Savinly.
