Rv And Boat Storage: Opening A Profitable Business

Starting an RV and boat storage business can be lucrative, given the high demand for storage and the limited supply. There are several factors to consider when opening an RV and boat storage facility, including location, layout, design, and cost.

Firstly, it is crucial to find a suitable location with enough land, typically ranging from 10 to 20 acres, and affordable land costs. The site should be near lakes or campgrounds and conveniently accessible from major roadways. Zoning regulations and the need for proper drainage must also be considered.

The layout and design of the facility are equally important. The facility should offer various storage options, such as fully enclosed, canopy or three-sided, and outdoor parking. The width and length of the units should accommodate different types of vehicles, with wider drive aisles to facilitate manoeuvring. Power access, dump stations, and wash bays are desirable amenities.

The cost of constructing an RV and boat storage facility varies depending on factors like location, size, and materials used. It is essential to conduct thorough market research, consider the competition, and determine the potential rental rates in the area.

Additionally, a well-thought-out business plan, marketing strategy, and security measures are vital for the success of the venture.

Zoning and land requirements

• Zoning Laws: Zoning laws dictate how property can or cannot be used, and obtaining the necessary zoning approvals is essential. Research the zoning requirements for your desired location and determine if standard and outdoor storage are permitted. If modifications are needed, engage with city officials early on to understand the challenges and costs involved. Rezoning can be a lengthy and expensive process, so it's important to start this step as soon as possible.
• Land Search Criteria: The amount of land needed for an RV and boat storage facility is typically larger than a standard self-storage site. While a self-storage site usually requires 3 to 5 acres, aim for 10 to 20 acres for an RV and boat storage facility.
• Affordability: Consider the affordability of the land, as vehicle storage units often have lower rent per square foot and require large driveways. Therefore, it is crucial to assess whether the business model is feasible in areas with high land costs.
• Proximity to Homes: Unlike self-storage facilities, being close to residential areas is less crucial for RV and boat storage. Customers are generally willing to drive a little farther out of town. Look for a large parcel on a high-traffic road within a few miles of a more densely populated area, preferably in a region with lakes or campgrounds.
• Neighborhood Restrictions: Keep in mind that neighborhood restrictions on outdoor storage or parking can work in your favor. If a homeowner is not allowed to park their boat or RV on their property, they will likely seek out storage facilities, increasing demand for your services.
• Zoning and Use Verification: When building a new facility from scratch, ensure that you verify the zoning and permitted use of the land parcel. This step is critical to avoiding legal issues and delays in the future.
• Expansion Possibilities: Consider your long-term goals and whether you might want to expand the business in the future. Starting with a small lot and gradually expanding can be a viable strategy.

Construction costs

The cost of building an RV and boat storage facility varies depending on the type of construction. According to Self-Storage Ninjas, the cost per square foot for enclosed boat and RV units ranges from $55 to $65. For canopy boat and RV units, the cost per square foot ranges from $30 to $35. Multi-story, climate-controlled units can cost anywhere from the 90s to the low hundreds per square foot.

Mako Steel estimates that a high-end storage unit facility with 60,000 to 80,000 rentable square feet will cost $45 to $65 per square foot to build. A single-story storage facility costs between $25 and $45 per square foot to construct, while a multi-story storage facility costs between $42 and $70 per square foot.

Successful RV Storage Business suggests that developing a simple outdoor storage facility that is fully fenced, with an asphalt surface and security equipment, can cost around $15 per square foot. Installing steel canopies for covered parking can cost an additional $30 to $50 per square foot, depending on the type of structure.

These are rough estimates, and the actual cost of building an RV and boat storage facility can vary depending on several factors such as location, size, materials used, and other factors.

When considering construction costs, it's important to keep in mind that the type of facility you plan to build will impact your budget. For example, a luxury executive-class facility will require a larger investment compared to a barebones or minimal setup.

In addition to the cost of the building itself, you may also need to factor in the cost of purchasing land, especially if you are starting from scratch. The amount of land needed for an RV and boat storage facility is typically larger than a standard self-storage site, ranging from 10 to 20 acres. The cost of land can vary significantly depending on location and zoning requirements.

Another cost consideration is the amenities you plan to offer. Power hookups, dump stations, wash bays, and security features can all add to the overall construction cost. It's important to carefully evaluate which amenities are most valuable to your target customers and budget accordingly.

Furthermore, don't forget to include the cost of zoning and permitting in your construction budget. Zoning laws can vary by location, and you may need to obtain special permits or approvals for your facility. Consulting with local authorities and hiring a civil engineer to help with site design and planning can help ensure you don't encounter unexpected delays or additional expenses.

Lastly, it's worth mentioning that the construction timeline can also impact your overall costs. The time it takes to build an RV and boat storage facility depends on factors such as the size, type of construction, and location. A longer construction timeline may result in increased carrying costs and impact your cash flow projections. Therefore, it's essential to consult with professionals and carefully plan your construction schedule to minimize delays.

Security and safety measures

Fencing and Access Control:

• Install a sturdy perimeter fence: A secure fence is a basic yet essential aspect of safeguarding the premises. Opt for a chain-link fence or a similar robust alternative that is challenging to breach.
• Controlled access: Implement an electronic gate system with access codes or keycards. This ensures that only authorised individuals can enter the premises, deterring potential intruders.
• Security cameras: Install cameras at the entrance and exit points, as well as at strategic locations throughout the facility. Ensure these cameras are monitored or linked to a recording system for evidence in the event of an incident.
• Lighting: Ample lighting is crucial for security and the safety of your customers when accessing their vehicles after dark. Ensure the lighting is sufficient and consider motion-sensor lights to conserve energy.

Security Personnel and Response:

• Security guards: Consider hiring security guards, especially during nighttime hours, to patrol the facility and respond to any security breaches or incidents.
• Alarm systems: Install alarms that are linked to a central monitoring station or the local police department. Ensure the alarms are regularly tested and maintained.
• Quick response protocol: Develop a quick response protocol in case of a security breach. This could include immediate notification of the police and security personnel, as well as procedures to secure customers' property.

Customer Safety and Vehicle Protection:

• Fire safety: Implement fire safety measures, including fire extinguishers and sprinklers, clearly marked emergency exits, and fire alarms.
• Pest control: Put in place pest control measures to prevent infestations, which can damage vehicles.
• Weather protection: Offer covered or indoor storage options to protect vehicles from weather damage.
• Insurance: Encourage customers to insure their vehicles while in storage, providing them with peace of mind and an additional layer of financial protection.
• Surveillance: Implement 24/7 surveillance, either through security personnel or a comprehensive camera system, to deter theft and vandalism.

Remember, the security and safety measures you put in place will not only protect your customers' valuables but also enhance your reputation and attract more clients. It is worth investing time and resources into this aspect of your business.

Marketing and customer acquisition

• Understanding your customers: RV and boat storage customers differ from traditional self-storage customers. They tend to be financially stable and looking for an experience. They also have a lower likelihood of missing payments and are willing to travel further to find the right facility. Understanding these differences will help you tailor your marketing messages and offerings to their needs and expectations.
• Developing relationships with local RV dealerships: Local RV dealerships can be a great source of referrals. Reach out to them and offer incentives for referring customers to your storage facility.
• Advertising in RV enthusiast magazines and websites: Targeted advertising in niche publications and websites can be an effective way to reach potential customers who are passionate about RVs and boats.
• Direct mail campaigns: Sending direct mailers to potential customers in your target area can help raise awareness of your storage facility. Include information about your amenities, security features, and any promotions or discounts you're offering.
• Social media marketing: Creating and maintaining active social media accounts is crucial in today's digital age. Share engaging content regularly, highlighting the benefits of using your storage facility. You can also consider influencer marketing, where you collaborate with social media influencers in the RV and boat community to promote your business.
• Word-of-mouth marketing: Building relationships with your customers and other local businesses, such as repair shops and dealers, can lead to valuable referrals. Focus on providing excellent service and fostering a positive customer experience to encourage word-of-mouth recommendations.
• Destination marketing: If your storage facility is located near popular travel destinations, such as the Grand Canyon, target your marketing efforts towards potential customers who intend to travel to those destinations. Highlight the convenience and benefits of storing their RV or boat with you.
• Online presence: Ensure your website is optimised for search engines and mobile devices. Include clear information about your facility's location, amenities, security features, and contact details. Consider investing in Google Ads or other digital advertising platforms to increase your online visibility.
• Referral programs: Implement a referral or affiliate program that encourages existing customers and social media influencers to refer new customers to your business in exchange for a commission, discount, or free service.

Revenue and pricing

RV and boat storage businesses can be lucrative, given the high demand and relatively low supply. The revenue you can expect to generate from your RV and boat storage business will depend on several factors, including location, availability, size, type, and features.

Location

The price of RV and boat storage varies depending on the location of your storage facility. For instance, storage spaces closer to bodies of water or campgrounds tend to be in higher demand and, therefore, more expensive. Additionally, storage facilities in areas with high land costs may need to charge higher prices to compensate.

Availability

Supply and demand significantly influence pricing. For example, storage spaces closer to the water may be in higher demand and, thus, pricier, while units may be more affordable further inland. The availability of storage also depends on the time of year, as more people seek storage during the off-season.

Size

The larger the boat or RV, the larger the storage space required, and the higher the cost.

Type

Outdoor uncovered storage is typically the most affordable option, followed by outdoor covered storage, and indoor drive-up storage is usually the most expensive. Each option provides varying levels of protection from the elements, justifying the difference in pricing.

Features

Additional features such as climate control, air-conditioned storage, and power outlets in each unit can increase the rental price.

Insurance

Most storage facilities require tenants to have insurance for their boats and RVs. While this adds an extra fee, it is beneficial for the tenant and the facility in case of theft, vandalism, or damage.

Pricing Examples

According to Life Storage's pricing as of March 2024, boat storage costs range from $37 to $350 per month, while RV storage costs range from $37 to $400 per month. These prices vary depending on the type of storage, with indoor storage being the most expensive, followed by outdoor covered storage, and outdoor uncovered storage being the most affordable.

When setting prices, it is essential to consider the local competition and the amenities you offer. If your facility provides unique benefits or if competitors are full, you can justify charging higher rates. Additionally, be cautious when increasing rent, as tenants can easily move their vehicles to a lower-priced facility.

Frequently asked questions