With millennials leading the way in RV purchases, storage facilities that cater to these large vehicles and watercraft are a hot commodity.
Investors who capitalize on this niche are rewarded with high demand and low competition. In addition, this subsector is an excellent opportunity for investors with land and a strong development background.
Convenience
Boat and RV storage facilities are a convenient option for anyone who doesn’t have space in their garage or yard to store their recreational vehicles. This is especially true for residents who live in areas where parking their boats and RVs in the driveways of their homes is prohibited by neighborhood association rules.
As the number of registered RVs and boats continues to skyrocket, so does the demand for these facilities. As long as the economy is strong, there will continue to be a steady stream of new customers for these facilities.
However, there are some factors that you should keep in mind when investing in an RV and boat storage facility. These include:
Security
Technically, investing in affordable boat and rv storage Green Cove Springs is an excellent investment because the industry is growing. Customers of these facilities want to be sure their property is safe, and it’s important to offer security services.
Surveillance technologies and tactics, such as cameras, sensors, motion detectors, and security alarms, deter unauthorized access effectively. They also play a crucial role in incident response and analysis.
In addition to physical security, facility owners can increase their profitability and customer experience by incorporating several income-producing amenities. These may include dump stations, boat, and RV wash stations, in-house convenience stores, and 24/7 security personnel.
While investing in a specialized facility for boat and RV storage can have more upfront costs than traditional self-storage, it often pays off due to a higher influx of rent per square foot, a lower delinquency rate, and higher asset values. As a result, many investors are opting to build new specialized boat and RV facilities or convert their existing self-storage buildings to accommodate these needs.
Accessibility
As a specialty storage operator, you must consider your target audience and develop a strategy that best aligns with their needs. This involves a lot of research, including a feasibility study that looks at the demand in your area for boat and RV storage.
To meet the high expectations of today’s premium storage tenants, you must deliver convenience matched by superior security. That means offering enhanced door security and other convenient features leveraging technology for safety and comfort.
Rather than relying on padlocks, these customers want access to their units and vehicles via intelligent electronic locks and door alarms. This gives them peace of mind and a highly satisfying experience that sets your facility apart from others in the region.
In addition, integrating video surveillance into your facility’s security strategy is an excellent opportunity to improve tenant safety and satisfaction. With live monitoring, you can react quickly to unwanted incidents and deter bad behavior before it occurs.
Flexibility
The boating and recreational vehicle (RV) storage market is a growing niche asset class with elevated demand fueled by demographic and social trends, strong income potential, and a shortage of institutional capital. With record vehicle registrations and a lack of franchised facilities, boat/RV storage allows deep-pocketed investors to exploit this nascent industry.
While a large pool of tenants means lower vacancy risk, owners also have the option to offer unique amenities that enhance their facility’s customer experience and generate additional revenue. These supplementary services range from the dump and wash stations to in-house convenience stores and 24/7 security personnel.
The essential consideration in building an RV and boat storage facility is location. Ideally, the site should be a rural area outside city centers and near recreational places like national parks or lakes.
