There are plenty of opportunities in self-storage, but the most profitable strategies involve replacing poor management, according to Hunter Thompson, CEO of Cash Flow Connections. He is executing a value-add strategy based on buying properties with inefficient management and implementing revenue-generating amenities. In 2018, value-add self-storage is where he is finding the best opportunities for yield.

“I think that buying properties, particularly in this asset class, with significant in-place income and a lack of an effective implementation of management strategies on a risk adjusted basis is by far the most favorable,” Thompson tells GlobeSt.com.

One example of these revenue-generating amenities is providing U-Haul truck rentals to tenants. This is a service that he is successful brought into many properties. “I have invested in properties where the management didn't rent out trucks to the tenants when they are moving in or out,” says Thompson. “We can buy that property based on in-place income and leverage our relationship with U-Haul. Within 30 days, there are a dozen or more U-Haul trucks on the facility. We don't own or maintain the trucks. We just allow those trucks to be parked on our property, and we rent out the trucks to tenants as they are moving.”