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Should You Build Boat/RV Storage? Considerations for Market Entry, Facility Design and Ongoing SuccessShould You Build Boat/RV Storage? Considerations for Market Entry, Facility Design and Ongoing Success
Boat/RV storage is a fast-growing niche that offers attractive returns for developers and owners who invest in the right location, facility design and customer amenities. This article addresses factors that can help you determine whether you should enter this profitable sector of the self-storage industry and how to capitalize on the opportunity.
7 Min Read
Compass Boat & RV Storage in Wildwood, Florida
Lots of people (me included) bought boats and RVs during the pandemic so they could enjoy more quality time outside, which led some self-storage developers and owners to consider building and offering specialty storage for these vehicles. In fact, you may be considering it yourself. To help you decide whether to move forward, let’s look at key factors behind this budding and lucrative sector.
Reasons to Invest in Boat/RV Storage
Though there’s evidence to show that sales of boats and RVs have been lower this year than the past several years, there are still millions of existing vehicle owners and many consumers who hope or plan to be. One of the primary reasons why boat/RV storage can succeed in most markets is it’s often difficult for people to keep these large “toys” at home due to space constraints or homeowners-association restrictions. Owners need a safe, secure place where they can park their vehicles when not in use.
Despite this high demand, boat/RV storage remains undersupplied in many regions, creating a prime opportunity for self-storage developers and owners. Let’s look at some of the other key advantages:
An easily identifiable market. It’s easy to identify boat and RV owners in a target market as well as the storage operators who accommodate them. That makes it simple to gauge demand.
Low competition. In addition to the supply shortage, many boat/RV-storage facilities offer subpar options, including gravel parking lots, rundown buildings with swing doors, and units that don’t accommodate large vehicles.
Steady, long-term rental income. Boats and RVs are typically stored for extended periods, especially during off-seasons. Most vehicle owners will use their units for months or even years.
Premium pricing potential. Due to the larger size and specialized nature of boat/RV-storage units, facility operators can charge premium rates, particularly in undersupplied markets.
Lower operating expenses. Compared to self-storage, boat/RV storage is very easy and inexpensive to maintain. I own and manage two such facilities at a sub-25% expense ratio compared to the 35% expense ratio for self-storage.
Types of Boat/RV-Storage
There are three main types of boat/RV storage that can be built as part of a self-storage property or a dedicated facility: open parking, covered (canopy) and enclosed. Each has its pros and cons.
Open parking is the least expensive to build and the easiest to maintain. Plus, it accommodates any type of vehicle. However, it’s also the least secure of the storage types and leaves boats and RVs exposed to the elements. It may command lower rental rates, and there are almost no barriers to entry for new competitors.
Covered storage offers more protection and commands higher rental rates; however, it’s more expensive to build. In fact, due to wind-load requirements, it may cost just as much to build this type of storage as it does to build fully enclosed storage, yet without the same revenue potential. It also isn’t completely impervious to theft or bad weather.
Haslet Boat & RV Storage in Haslet, Texas
Enclosed boat/RV-storage units command top-level rents, especially if they come with automatic doors and electricity. They also offer the highest level of protection and draw a larger customer base, as they can double as flex-warehouse space. That said, they’re the most expensive to build and maintain, and they require the most square feet per vehicle.
There’s a fourth option for boats and RVs, which is warehouse or interior dry-stack storage; however, it isn’t very commonly used in the self-storage industry. Though it offers good protection for vehicles and can command high rental rates, tenants aren’t able to park or retrieve their own vehicles, which means the operator has to do it. That requires skilled employees and can create additional liability. It can also be perceived as an inconvenience by some renters, as they must notify the facility in advance when they intend to pick up or drop off their vehicle.
Knowing When to Build Boat/RV Storage
Before embarking on a boat/RV-storage development, it’s crucial to determine if the venture will be profitable in your market. A feasibility study can help you forecast occupancy, calculate costs and project investment return, so you can determine whether the project makes financial sense.
Start by gauging local demand for boat/RV storage. Use surveys, demographic research and industry reports to assess whether your target area has a sufficient number of vehicle owners. Also, evaluate existing competitors. How saturated is the market, and what gaps exist in the types of storage offered? A feasibility consultant can tell you how many facilities are in the area and where they are. An underserved market is ideal.
Next, consider the location. Sites near highways, lakes, campgrounds, marinas and national parks are ideal for boat/RV storage. Just remember: Easy access is crucial. Also, make sure the infrastructure can accommodate the size and weight of large vehicles.
Considerations for Boat/RV-Storage Design
Once you’ve determined that your market can support boat/RV storage, you’ll need to decide whether to build from the ground up or repurpose an existing property. A new build offers greater customization; however, a conversion of a former industrial or commercial site may be more cost-effective, provided it can be modified for larger vehicles.
Boat/RV-storage requires significantly wider drive lanes and parking spaces than standard self-storage facilities. Most RVs range from 8 to 12 feet wide. With the need for maneuvering space and turning radii, drive aisles should be at least 40 to 60 feet wide.
Large vehicles are also heavy, so your storage surface needs to be durable enough to withstand the weight and constant use. Asphalt or reinforced concrete pads are ideal for minimizing wear and tear. Gravel may be cheaper initially but can lead to higher maintenance costs over time due to erosion and shifting.
Water runoff can be an issue with open and canopy storage. Install proper drainage systems to prevent flooding and vehicle damage. Covered and enclosed spaces also require weatherproofing, particularly in areas with heavy snowfall or rain.
Given the high value of boats and RVs—and their appeal to thieves—security should be a top priority. Invest in lighting, surveillance cameras, keypad access, and perimeter fencing. Even with these measures in place, theft can still occur. My facility in Fort Worth was broken into five times, so I installed a $50,000 monitored security system. Even still, criminals attempt to cut and drive through the fence. And we’re in a high-traffic location in an affluent area!
Additional Advice
Developing a successful boat/RV-storage facility requires careful planning and execution. Here are a few additional tips:
Future expansion. If possible, design your facility with expansion in mind. Even if your budget or market demand is initially small, it’s likely to swell as more people purchase large vehicles, especially in areas with population growth. Leaving space for additional storage units or parking spots can help your business scale as demand increases.
Customer conveniences. At one of my boat/RV-storage facilities, we offer premium services to all tenants at no extra charge, including an RV dump station, wash station, potable water, ice machine, air compressor and vacuums. You can also consider offering vehicle maintenance (shrink-wrap, summarization, winterization), retail products (tire blocks, propane, firewood), or amenities such as a dog park or kids’ playground. These can help differentiate your facility from competitors and create additional income streams.
Effective marketing. Direct-mail campaigns, billboards, signage and partnerships with local vehicle dealerships or marinas can all drive traffic to your boat/RV-storage facility. Highlight your convenient access, security features and any value-added services in your promotional materials.
Boat/RV storage is a fast-growing market that offers attractive returns for developers and owners who invest in the right location, facility design and customer amenities. With long-term demand, steady rental income and relatively low maintenance costs, this niche has significant growth potential. By carefully considering feasibility, product types, design details and amenities, you can position yourself to capitalize on this opportunity within the self-storage industry.
Katherine D’Agostino is the founder of Lincoln, Nebraska-based Self-Storage Ninjas, which provides feasibility consulting and reports for the self-storage industry as well as for boat/RV storage, flex-warehouse space, storage condos and contractor yards. A former marketing-communications executive, she’s written hundreds of reports for facility owners across the United States, enabling them to make informed investing decisions. She’s also a frequent speaker at self-storage events and an experienced property owner and developer, with three self-storage facilities in Nebraska and boat/RV-storage facilities in Illinois and Texas. To reach her, call 402.570.5021; email [email protected].
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