Americans have a hard time letting go of their stuff. About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. In 1995, just one in 17 households rented a unit.
Stuffed inside many of those units are everything from used textbooks and clothes that no longer fit to couches and wall hangings that may one day be useful again.
The problem, though, is that self-storage facilities can be costly. The average national monthly cost of a climate-controlled rental space is expected to reach $1.63 per square foot this year, according to Marcus & Millichap, an investment real estate company that tracks the self-storage industry. That means you could spend nearly $2,000 in one year for the most popular 10’ x 10’ unit. In higher cost areas a typical price for that space rises to $2,500 (in Los Angeles) to more than $3,700 (in New York City).
So why do people pay the hefty fees? “It’s typically all about procrastination,” says Ann Gambrell, a founder of the National Association of Professional Organizers, who runs decluttering workshops and clutter support groups. “People end up spending money because they can’t make a decision.”
To be sure, there are some good reasons to use a self-storage facility. For example, storage could be necessary if you’re moving from one home to another but the new home isn’t yet vacant. While such temporary needs are easy to understand, more than half of self-storage renters keep a unit for a year or more, according to the Self Storage Association.
“The only time it makes sense to use self storage long-term is if you are using it to access stuff you actually use,” says Donna Smallin Kuper, author of How to Declutter and Make Money Now and blogger at unclutter.com. For example, even at $300 or more a month, a New York City storage unit can be more cost-effective than paying for a bigger apartment.
Cutting the Cost
If you are committed to keeping a storage unit, there are ways to cut costs. One option: Skip paying more for extra insurance or protection offered by storage facilities. Insurance agent Paul Martin, at TrustedChoice.com, which connects consumers with independent agents, says most homeowner and renter policies provide insurance for “Off Premises” property. The standard coverage is 10 percent of the personal property limit on your policy so if your policy offers you $100,000 in personal property coverage, your Off Premises limit would be $10,000.
“If you are storing valuables above that 10 percent limit, you really should talk to your agent about whether it makes sense to get a separate policy ,” says Martin . And before you turn down any offers at the storage facility confirm your homeowner/renter policy coverage.