Toy Storage Nation President Amy Bix and TSN advisory board member Greg Ellsworth, president of Self-Storage Consulting Group, recently visited with the Self-Storage Clubhouse Group to share insights about the RV and boat storage industry. Self-Storage Clubhouse Group is a Facebook community of self-storage investors and developers that meets weekly to explore self-storage topics. (Check it out: https://www.facebook.com/groups/clubhouseinvestors/)
Bix and Ellsworth echoed the sentiment that the RV and boat storage industry is rich with opportunities for entrepreneurs interested in entering the business as well as self-storage operators speculating on expanding facilities to include toy storage.
“We’re seeing shortages just about everywhere, not just the sunbelt areas,” Bix said, explaining that development opportunities exist in abundance across the country, and it will take a long time before supply can come close to meeting demand. She noted that the pandemic inspired many people to purchase outdoor-rec toys, but sales of RVs and boats are continuing to remain strong, such that consumers are buying oversized toys faster than they can find a safe place to store them.
As the “voice of the RV and boat storage industry,” Toy Storage Nation advocates for the development of Class A facilities, Bix stated. “To meet Class A distinction, facilities must incorporate four elements: They must offer covered storage (whether fully enclosed or canopied), paved driveways, gated access and full perimeter fencing. We always recommend that you build Class A to set your business up for success at the start. Because if you don’t, eventually a competitive facility will open nearby that may end up drawing tenants away from your site.
“It’s a great industry and it is only going to get better,” she adds. “The folks who can afford these high-priced toys will easily pay higher rents to make sure their toys are safe, and they’ll also pay for added conveniences, which can create a great revenue-stream.
“Moreover, these tenants are coming to the facility on their way to a fun trip or exciting vacation, so they are typically in a happy mood. You’ll never have to run them down for rent (like you might sometimes do with self-storage tenants), because they have the money to pay; plus, it’s highly unlikely they’ll go delinquent on rent or leave their expensive RV behind.”
For entrepreneurs on the hunt for an easy-to-run, profitable business that doesn’t require undivided attention, RV and boat storage can seem almost too good to be true. “This type of business is not labor-intensive,” adds Bix. “Maybe you’ll need a part-time manager, but so much of the storage process is automated that nearly everything can be done remotely or through a third-party management company.”
Bix and Ellsworth both agree that RV and boat storage entrepreneurs can reduce development costs by purchasing land outside of city environs. “Land outside of town tends to be less expensive,” says Bix, “and we’re finding that many tenants actually prefer to not haul their toys all the way through a city to get to their destination.”
Ellsworth, who operates several Class A RV and boat storage facilities on the east side of Phoenix, says he knows some tenants who live in the Valley prefer to store their vehicles 2.5 hours north, in Flagstaff, which is in close proximity to the Grand Canyon and summer camping. “These tenants would much rather pick up their RV right in Flagstaff, which is at 5,500 elevation, instead of hauling it all the way ‘up the hill’ from the desert.”
As the founder of Self-Storage Consulting Group, which launched in 2022, Ellsworth has 11 years of experience developing and operating RV and boat storage as well as traditional self-storage facilities. While the concept of storing people’s belongings is shared between storage types, design and management concepts can be vastly different.
For example, self-storage developers often seek properties within city limits, for customer convenience. As explained previously, RV and boat storage properties are better suited for outlying communities, and not just to cut down on costs or travel time, says Ellsworth.
Citified storage businesses often occupy multistory buildings, because developers can maximize profits by building up, “but I always recommend RV and boat storage developers look for at least 5 acres of land,” says Ellsworth, adding that driveways and turnaround space on an RV and boat storage site must be wide enough to accommodate the oversized vehicles.
For toy storage, adds Ellsworth, “door widths must be at least 12-feet wide for tenants to back into their spaces. Unit depths begin at 35 feet to accommodate smaller boats and ATV type vehicles, growing incrementally to fit larger campers and motorhomes.”
Security is a concern for all forms of storage, but Ellsworth knows toy storage tenants expect an even higher level of protection for their costly rec vehicles. “People tend to watch out for each other in these facilities,” which is helpful, but he also depends on “high-security cameras and a hydraulic gate that cannot be compromised by bolt-cutters.
“We place lights higher up so you can see over the RVs, and we’ve also installed cameras to capture license plates,” he says, adding that criminals at toy storage sites need a vehicle to transport stolen goods off the premises, and a license plate number is much more effective in tracking down thieves than a photo of their faces.
Ellsworth’s properties offer traditional self-storage unit rentals in addition to toy storage for RV and boat storage tenants to ensure items they take on vacations–such as the propane tanks, bikes, rafts, fishing and jet-skiing equipment–can be placed in safekeeping as well.
“We also offer other ancillary services, like a dump and wash station, because our tenants really appreciate having everything at one site,” concludes Ellsworth.” “I know when people come home from a long RV trip with a car full of kids and dogs they really want to make just one stop before heading home to bed.”
Ellsworth is a regular presenter at Toy Storage Nation Executive RV and Boat Storage Workshops, where he shares his industry experience and mentors newcomers. He will be speaking at the TSN Fort Myers Workshop on Friday, Dec. 1, as well as upcoming 2024 workshops. To check availability of future workshops, visit toystoragenation.com regularly and click on the Events tab.
To learn more about Self-Storage Consulting Group visit https://sscg1.com/.
