By Brett Copper
The purpose of any form of self-storage is the same–to keep tenants’ belongings in a safe and easily accessible location. This holds true whether tenants are stacking 10-by-10 units with boxes or filling 15-by-40 units with RVs and boats. While the two forms of storage share commonalities in design and function, management strategies between the two can be distinctly different—especially if you want to achieve the highest possible returns on your investment.
With less overhead than most investment properties, boat and RV storage properties have low operating costs and remain steady in a fluctuating economy. As families and individuals continue to work remotely, many have invested in RVs, boats and campers to expand their style of living.
This lifestyle shift has broadened the market for boat and RV facilities and allowed owners and operators to maximize this niche form of storage. Industry experts are also speculating that RV and boat storage is where self-storage was decades ago—a young emerging real estate niche with unfathomable opportunities.
If you’re one of the savvy entrepreneurs who’s gearing up to enter this exhilarating niche market, read on to learn the subtle and big differences between managing customary self-storage and its fast-growing sibling: toy storage.
Primary Considerations
Investing in remote management services will greatly benefit you and your customers. Many have learned that you can save expenses on staff, marketing and maintenance fees by working with a remote management company. Additionally, your customers will be able to access their accounts online and enter/exit the facility when it’s convenient for them.
Typically, the biggest differences between managing a traditional facility and RV/boat facility are security requirements, tenant insurance penetration, auctions and automation options. Let’s break it down:
- Security: Boat and RV facilities need top-notch security. This means good lighting and cameras, and the entire facility must be fenced and gated. Additional security measures—such as monitored cameras, alarms or speaker systems—can offer great value-add reassurance for tenants. RVs and boats are expensive commodities, so people want their toys to be as protected as possible. Just make sure the market supports high enough rental rates to justify any additional amenities!
- Insurance: There is usually a much lower overall tenant insurance penetration rate because all toy storage tenants are required to have insurance coverage before storing anyway. Typical boat and RV options for tenant insurance cover goods inside of the vehicles instead of the vehicles themselves. This can be much harder to sell to tenants compared to traditional self-storage units.
- Auctions: Many states either have lengthy auction processes or do not allow them at all for boats and RVs. However, most allow you to have the vehicle towed pretty quickly. More importantly, tenants don’t typically skip out on their high-ticket, beloved outdoor toys, so auctions are more of a rarity than a normality!
- Automation: Much like booking a hotel room or even buying a car, the process of renting a self-storage unit or RV/boat space can be contactless. Take out the middleman—or in this case, an on-site manager—and allow tenants to reserve, rent, pay and upgrade their units online. Additionally, some management companies offer a remote call center for tenant questions, needs or concerns.
Basic Operations
Operations for boat and RV storage will be a little different than standard storage operations. There is typically much less upkeep and onsite tasks required. Unless you have fully enclosed spaces, there is no need for overlocking or cutting locks for auctions. You also don’t have to provide ongoing door maintenance. There is also no need to get units “ready-to-rent.” Instead, the focus is on cleaning and maintaining the property grounds.
Marketing Strategies
Marketing can have a significant impact on your success with boat and RV storage. What type you choose will depend on whether you’re a facility that supports a hybrid of traditional self-storage and toy storage, or if your facility was designed specifically for solely boat and RV storage. This impacts your target audience and who might be utilizing your facility.
Here are a few strategies to consider:
- Digital Marketing: Invest in email marketing, paid advertising, and/or social media. You can target customers based on keywords, geography, etc.
- Traditional Marketing: Advertise in local newspapers or with flyers and other forms of literature.
- SEO: Spend time investing in search engine optimization to boost your website with strategic keywords.
Personable Customer Service
Providing exceptional customer service is crucial in the self-storage industry. With remote management, there is sometimes a fear that the customer experience will feel less personal, or that the team might lack information to answer specific industry-related questions. However, this is far from the truth. With remote self-storage management, you gain access to a professional call center staffed with knowledgeable representatives who handle customer inquiries, payments, and any issues that may arise. These remote experts ensure that every customer receives top-notch service, enhancing their satisfaction and increasing the likelihood of repeat business. Additionally, your customers will be able to get their questions answered quickly in their preferred communication style at the time of day that is most convenient for them.
Streamlined Bookkeeping and Financial Management
Remote self-storage management takes the burden of bookkeeping and financial management off your shoulders. The remote team handles day-to-day financial tasks such as rent collection, invoicing and expense tracking. With advanced automated software and systems, they maintain accurate and up-to-date records, providing you with real-time financial insights. This streamlines your operations, saves you time and allows you to make data-driven decisions to optimize your investment.
Advanced Technology Integration
Remote self-storage management is at the forefront of incorporating advanced technology into facility operations. This includes implementing digital access systems, remote monitoring and smart security solutions. Customers can conveniently access their stored belongings using personalized access codes, enhancing the overall user experience. Remote monitoring systems allow you to keep an eye on the facility’s security and performance remotely, ensuring that everything runs smoothly even when you’re not physically present.
Conclusion
In the ever-evolving world of self-storage investments, remote management is revolutionary and cost-saving. This innovative approach has transformed the industry by eliminating the need for in-person staff, providing comprehensive customer service, streamlining bookkeeping and financial management, offering strategic marketing support and integrating advanced technology. Remote self-storage management may be the way to go if you’re considering investing in storage—whether it’s traditional self-storage or toy storage—to maximize your returns and simplify your operations.
As President and Partner of Copper Storage Management, Brett Copper has grown up in the self-storage industry, working with Self Storage 101, a leading self-storage consulting firm, since he was a teenager. After college, he worked with CubeSmart to gain further insight into third-party management and operations. He has worked with hundreds of self-storage owners and operators on management, marketing, acquisitions, feasibility and training for facilities all over the United States. The Copper Storage Management model incorporates best practices for customer service, marketing, revenue management and streamlined operations utilizing automation processes. This approach liberates facility owners and renters from traditional hours of operation constraints and adds a new dimension to the self-storage landscape. For more information, visit copperstoragemanagement.com or email Brett Copper at brett@coppersm.com.
