At Legacy Built, we focus on self-storage because it combines strong demand with clear operational and tax advantages. Investors comparing storage unit investing to apartment ownership in Tucson Arizona often notice meaningful differences in depreciation, maintenance exposure, and how passive losses may apply. Understanding these differences helps investors make informed real estate decisions in markets like Tucson, Marana, Oro Valley, Sahuarita, Phoenix, and Scottsdale.
Depreciation schedules and how they differ
Both apartments and self-storage facilities qualify for depreciation, but the structure of each asset can change how deductions are recognized. Apartment buildings typically depreciate over a longer residential schedule, with many components tied directly to living spaces. This often limits how quickly costs can be recovered.
Self-storage facilities, by contrast, are treated as commercial real estate. Many components such as electrical systems, security features, and site improvements may fall into shorter depreciation categories. This can allow a larger portion of the property value to be depreciated earlier, especially when proper cost analysis is completed. Investors can learn more about how these returns have played out historically by reviewing our past performance data.
Maintenance and expense differences
Maintenance costs play a big role in taxable income. Apartments usually require ongoing repairs related to plumbing, appliances, interiors, and tenant turnover. These expenses can be unpredictable and time intensive. While repairs are deductible, the volume of small issues can add complexity.
Self-storage facilities generally have fewer moving parts. Units are simple, and tenants are responsible for their own stored items. Lower maintenance needs often lead to more stable operating expenses, which can support cleaner accounting and easier forecasting. Our philosophy on controlling risk and expenses is explained in our risk management approach.
Passive loss considerations
For many investors, passive losses are an important factor. Apartment investments often generate passive losses, but the ability to use those losses can be limited by income thresholds and participation rules. In some cases, losses may be suspended and carried forward.
Self-storage investing can also generate passive losses through depreciation, especially in the early years of a project. Depending on an investor’s tax situation, those losses may help offset passive income from other real estate holdings. While individual outcomes vary, this is one reason many investors compare storage favorably to apartments when evaluating long-term real estate strategies.
Why Tucson Arizona stands out
Tucson Arizona continues to attract population growth, retirees, and businesses. That growth supports demand for storage driven by downsizing, relocation, and lifestyle changes. We discuss these trends further in our article on why Tucson keeps growing and how they impact self-storage demand.
A focused approach to investing
Legacy Built operates as both developer and investor, which allows us to manage costs and timelines more effectively than many apartment-focused platforms. We also offer financing for all customers and keep our focus on long-term fundamentals rather than short-term speculation.
For investors weighing storage versus apartments in Tucson Arizona, the combination of depreciation structure, reduced maintenance exposure, and potential passive loss benefits often makes self-storage a compelling option.