Are you wondering what type of commercial real estate to invest in to secure your future? While most beginners have at least heard of RV parks as well as self-storage, very few realize that when you put the two together, you get an incredible niche property type that can send you laughing all the way to the bank. Want to know why? Read on …
Rec-vehicle storage vs. multifamily properties
There’s so much competition in apartment investing that it can be difficult to break into the market. However, because RV and boat storage is still a niche market, there isn’t as much competition. Moreover, toy storage facilities are in high demand. RV sales hit an all-time high during COVID-19, as did boat sales, and even though sales have simmered a bit, RV and boat owners are still struggling to find places to store their toys, especially as Homeowner Associations are ramping up restrictions to storing oversized at home.
Toy storage has smokin’ hot returns on investment
Compared to single-family home rentals, RV Storage has skyrocketing profit margins. This is true for a couple reasons:
- With renters vacate a premise, the landlord is left with shampooing carpets, patching up walls, painting, cleaning and replacing appliances–whatever is necessary to attract higher rents and new tenants. But with RV storage, owner-operators can practically sweep and treat for insects before turning over a unit. Plus, facilities often have a long waitlist with toy owners chomping at the bit.
- When a tenant moves out of a single-family home, the occupancy rate is zero until a new tenant moves in. With an RV facility, owners can have hundreds of units; even if 10 tenants move out, facilities are still reaping in profits.
A steady income
RV and boat storage facilities have steadier incomes than self-storage, which has been proven time and again. If you’ve ever watched the TV show “Self-Storage Wars,” you’ve seen units stuffed full with household items, memorabilia and other forgettable items that tenants are willing to part with before settling overdue rents.
On the other hand, toy storage owners have invested heavily into RVs, boats, ATVs, jet skis, etc. They’ll pay higher rents to ensure these family loved vehicles are kept safe and sound. The last thing they’ll do is abandon them. Moreover, you can make a nice little side profit by offering insurance packages to cover their vehicles from onsite fires, thefts, dents and dings.
Let high-level software and security technology do it’s thing
In any commercial real estate investment, you will need to do marketing, maintenance and management. In today’s recreational vehicle storage industry, technology is so advanced that it can practically run the site for you. Of course, you can still offer person-to-person management if you want that specialized customer service, especially if you’re marketing yourself as a luxury facility, but you can pick and choose what works best for your tenants … and your budget!
Want to learn more? Stay tuned for the Toy Storage Nation Executive Workshop that’s heading to Reno in September, when you can learn straight from industry pioneers about every step to take to find your successful future in RV and boat storage. Read more.