By Regency Steel Buildings
The self-storage industry is a lucrative one for today’s entrepreneurs, with many economists and financial professionals deeming it “recession-resistant” due to the fact that demand remains steady even when the economy takes a dive. RV sales during COVID-19 set all-time records, according to the RV Industry Association (RVIA), which predicts 2024 RV shipments to increase by 24% in 2024, indicating the need for toy storage (RVs, trailers, ATVs, boats, etc.) will only rise, especially because there is a dearth in supply at this time.
With the explosive popularity of RVs comes an increased need for RV storage, and this makes now a great time to invest in a self-storage facility that accommodates these large, heavy recreational vehicles. Why might you want to consider investing in RV storage units for your self-storage business?
- They have high profit margins
Renting RV storage space is often easier and lower-maintenance than renting residential spaces, and this leads to higher profit margins. You don’t have to do extensive cleaning when a tenant moves out of an RV storage unit. You can also still collect money from other storage units when one is vacant, ensuring you continue to see a steady revenue stream even when a customer vacates.
- They generate reliable income
Compared with a traditional self-storage facility, RV storage tenants are often more reliable. It is not uncommon for a renter of a traditional storage space to abandon the space and everything inside. This is unlikely for RV renters, who are leaving valuable assets inside your building.
- They are a smart pandemic-era investment
RV sales exploded during the global COVID-19 pandemic, as many regular travelers decided to forgo air travel in favor of hitting the open road.
- There is a gap in the market
Many states across the nation are experiencing a shortage of RV storage space, and this lack of competition means good news for today’s self-storage investors.
- There are increased RV parking restrictions across the nation
Many of today’s homeowners live in multifamily housing or under HOAs that restrict them from parking RVs outside their homes or apartments. This is becoming an increasingly common practice among homeowner’s associations and is exacerbating a need for safe, secure places to store these assets.
- They appeal to a fast-growing demographic
In 2020, the largest number of RV buyers fell within the 45 – 64 age range. As these individuals inch closer to retirement, they may have more money available to buy expensive RVs they’re willing to pay to protect.
- They can also house boats and other toys
While customers are willing to pay a premium for safe, secure RV storage, facility owners may also be able to use these storage units to house boats, motorcycles, food trucks and other toys and vehicles.
- They’re easy to add to existing self-storage facilities
One of the reasons many investors opt for steel self-storage buildings is because they are flexible and easy to adapt or reconfigure. Existing self-storage business owners may be able to adapt their spaces to allow for RV storage without much effort or expense.
- They draw high-income renters
While traditional storage units attract renters with a wide range of incomes, RV storage units tend to attract customers who have money to spare – meaning they are more likely to pay rent on time each month.
- Covered storage space commands a high price tag
Purchasing an RV involves a significant investment, and many RV owners want to store their RVs under steel roofs, as opposed to behind fences or in fields. This is particularly true in areas prone to heavy rain or snowfall. Customers are often willing to pay a premium for storage space if it means their assets will retain much of their resale value.
Mini Storage Outlet is a leading supplier of self-storage buildings, RV self-storage buildings and steel structures that serve both purposes. Get in touch to learn more about how adding RV storage spaces to a facility can help you attract more tenants, command higher prices and fill this growing gap within the self-storage marketplace.
Since 1984, Regency Steel Buildings has been a leading provider of top-quality, pre-engineered steel storage buildings to consumers across the United States and Canada. No matter the size or scope of the project, the Mini Storage Outlet team can provide assistance from conception to completion to ensure that you are completely satisfied with your storage building purchase. Having supplied thousands of storage projects nationwide, Recency has the knowledge and experience to help you with all phases of your project. Learn more.