By Barry Sherman, Architect | Founder/Principal, S3 Partners
Self-storage businesses have been on the radar for savvy investors for years, but since recreational vehicles and toy purchasing is at an all-time high with no signs of slowing, RV and boat storage facilities offer even more earning potential. Let’s walk through some of the reasons why now is the perfect time to invest in an RV, boat, and toy storage business.
RV and Boat storage is an Underserved Market
RVs, boats, and toys have never been more popular. The pandemic pushed many people out of cities and into the great outdoors, but most don’t have a place to store or work on their vehicles. And they don’t just want an open lot to park their stuff – they want a secure, convenient, and professional facility that helps them manage and protect their own investments.
This offers an excellent window of opportunity into a luxury niche. The market shows no signs of slowing down and many smart investors are already cashing in.
Potential for High Profits – if Done Right
RV and boat storage can be a huge profit center for self-storage investors and operators. Whether you build it as part of a new development or add it to an existing facility, it has tremendous potential.
- High Return on Investment – Traditional self-storage facilities require a lot of expensive steel material, whereas RV and boat storage doesn’t require as much structure. RV and boat storage only requires about half the overhead of other storage facilities.
- Long Term, Reliable Tenants – In most cases, offering RV, boat, and toy storage leads to long-term, profitable customers. These tenants tend to pay their rent on time and don’t mind paying a premium to protect their expensive toys.
- Competition is Low and Unorganized – Many older, bare bones RV and boat storage facilities are in inconvenient locations and don’t offer the amenities modern consumers expect. Big players haven’t dominated the market (yet) so there’s still plenty of room for newcomers.
Important Considerations for an RV & Boat Storage Business
A storage facility that offers vehicle and toy storage does come with additional considerations. Tenants expect more, and there are several additional aspects to keep in mind.
- Land Cost – Reduced land basis is a must when considering RV and Boat storage. The price per square foot for land should be lower than traditional self-storage. Ideally, we look for land below $5 per square foot.
- Legal and Insurance – With many vehicles moving in and out of your facility, it will be vital to keep thorough records and require additional releases and documents to keep yourself covered to limit liability and risk.
- Facility Amenities – Your tenants might expect things like electrical hookups, dump and fill stations, temperature controls, extended access hours, and more. Additional services like wintering, cleaning or valet will help attract and retain tenants willing and able to pay a premium.
- Customer Service – These high-value customers will also be looking for outstanding service and the peace of mind that comes with it. With trained and knowledgeable staff, online conveniences, and advanced security, your customers will stay put longer and refer friends your way.
Ready to Learn More?
Investing in any kind of real estate is a huge decision and oftentimes requires a trusted advisor with decades of experience and knowledge. At S3 Partners, we’ve been in this space for years and have seen it all. Whether you’re thinking about building a new facility or adding RV, boat, and toy storage to your existing storage business, we’d love to hear about your plans and help you get there right.
About S3 Partners, Experience Delivers Success™
S3 Partners provides Expert Services for the Self-Storage and Toy (Boat, RV, Cars plus) Storage Industries. Whether you’re building a new facility, researching suitable construction sites, or considering updating a current facility, storage projects present a host of complex challenges. S3 Partners’ professional staff has the knowledge and expertise to help you avoid common pitfalls and costly mistakes. No matter the size of your project, our services keep costs down and maximize your return on investment. | Visit us at s3.partners