How To Build An RV Storage Facility: Your Guide to Profitable Investment

The popularity of recreational vehicles (RVs) has increased in recent years, driven by the growing demand for outdoor adventures and flexible travel options. This surge in RV ownership has resulted in a greater need for secure and convenient storage solutions. If you’re considering entering the RV storage business, you’re tapping into a promising market with significant growth potential.

Constructing a facility for storing recreational vehicles (RVs) can be profitable, but it necessitates meticulous planning, strategic implementation, and a deep comprehension of the industry’s intricacies. This all-inclusive guide will furnish you with the necessary knowledge and tactics to effectively steer through the entire process, from selecting a site to managing operations.

In this post, we’ll walk you through the steps you need to take to build an RV storage facility of your own.

Cashing in on the craze

As the RV craze continues to sweep the nation, savvy investors are eyeing the potential goldmine in building RV storage facilities. Unlike traditional self-storage spaces, these facilities cater to the unique needs of recreational vehicle owners, offering larger storage spaces and requiring more land. While the upfront investment and space considerations may seem daunting, the potential profitability of an RV storage facility outweighs these challenges.

Market Overview

The surge in RV ownership, fueled by a desire for outdoor adventures and flexible travel options, has created an unprecedented demand for secure storage solutions. Building an RV storage facility taps into a market with significant growth potential. In May 2021, SpareFoot data revealed that the average monthly rent for RV-sized units was $134.35, substantially higher than the average monthly rent for all types of storage, which was less than $90. This stark difference in rental rates suggests that investing in an RV storage facility could be lucrative.

Unique Considerations for RV Storage Facilities

Unlike traditional self-storage facilities, constructing an RV storage facility requires careful consideration of specific factors to ensure success.

Size and Zoning Regulations

RV storage facilities demand more significant land space due to the sheer size of recreational vehicles. Ensure compliance with local zoning regulations and select a location allowing the necessary expansion. Conducting a thorough feasibility study is crucial to understanding the spatial requirements and ensuring alignment with local regulations.

Security and Facility Design

Given the high value of RVs, security is a top priority for owners seeking storage solutions. Implement state-of-the-art security measures, including surveillance cameras, access control systems, and adequate lighting. The facility’s design should optimize space usage while providing secure storage options, contributing to a positive customer experience and enhancing your facility’s reputation.

Operational Management

Efficient operational management is key to the success of an RV storage facility. Develop a user-friendly online booking system, establish clear pricing structures, and maintain effective customer communication channels. Regular facility maintenance, coupled with periodic security audits, is vital to uphold the facility’s integrity and assure customers of the safety of their valuable assets.

Amenities and Services

Consider offering additional amenities and services to attract and retain customers. These may include on-site RV maintenance and repair services, dump stations, and convenient access hours. Creating a comprehensive and convenient experience for RV owners can set your facility apart in a competitive market.

Marketing and Customer Engagement

Craft a robust marketing strategy to raise awareness about your RV storage facility. Utilize online platforms, social media, and partnerships with RV dealerships to reach your target audience. Engage with the RV community through events, sponsorships, and online forums to build a solid and loyal customer base.

Building an RV storage facility is a strategic investment that can capitalize on the flourishing RV craze. The higher rental rates for RV-sized units and the growing demand for secure storage make this venture potentially lucrative. By carefully navigating the unique considerations, such as size, security, operational management, amenities, and marketing, investors can tap into this thriving market and establish a successful RV storage facility.

Costs and considerations for an RV storage facility

As the demand for RV storage facilities continues to rise, potential investors must carefully assess the costs and considerations associated with developing and managing such a facility. Mako Steel, a company specializing in designing, supplying, and installing self-storage buildings, emphasizes that planning for at least 300,000 square feet of space is essential to accommodate RV storage, parking, and other necessary structures. This is a significant departure from the approximately 46,000 net rentable square feet required for a typical self-storage facility.

Space Requirements and Land Considerations

Unlike traditional self-storage facilities, RV storage facilities demand much larger spaces. A typical storage facility may cover 2.5 to 5 acres, but an RV storage facility can easily consume 7 to 10 acres. This increased space requirement impacts the initial development costs and raises land expenses. Investors should carefully evaluate the local real estate market to determine the feasibility of securing the necessary land at a reasonable cost.

Understanding these space and land factors is crucial when assessing the viability of an RV storage facility as a lucrative venture. The decision to enter this market requires a comprehensive understanding of the associated costs, which can run into the millions of dollars.

Development Costs

The cost to develop an RV storage facility is a significant financial consideration. In addition to land acquisition, developers must factor in construction costs for specialized storage buildings, parking spaces, security infrastructure, and other amenities. Working with reputable suppliers and contractors, such as Mako Steel and Trachte Building Systems, can provide valuable insights and help manage costs effectively.

Alternatives: Adding RV Units to Traditional Self-Storage Properties

Trachte Building Systems suggests exploring the option of incorporating RV units into a traditional self-storage property. While this may offer a more cost-effective solution, especially for smaller facilities, it’s essential to consider the limitations of the existing space. Premium locations may be too expensive to accommodate large RV units or need more space to support a sufficient number of them.

Regulatory Compliance and Zoning

Navigating local regulatory requirements and zoning regulations is paramount when developing an RV storage facility. Ensure compliance with all relevant laws and obtain necessary permits before initiating construction. Engaging with local authorities and consulting with professionals who specialize in zoning regulations can help streamline this process.

Return on Investment (ROI) Considerations

While the upfront costs of developing an RV storage facility can be substantial, the potential return on investment should be a driving factor. Conduct a thorough market analysis to understand the demand for RV storage in the chosen location and assess the competitive landscape. Factors such as rental rates, occupancy rates, and the overall growth of the RV market should inform your financial projections and ROI expectations.

In conclusion, entering the RV storage business requires careful consideration of various costs and factors. Balancing space requirements, land costs, development expenses, and regulatory compliance is crucial for a successful venture. By conducting a comprehensive feasibility study and seeking guidance from industry experts, potential investors can make informed decisions and position themselves to capitalize on the lucrative opportunities presented by the growing demand for RV storage.

Zero in on the location

Selecting the right location is paramount for building a successful RV storage facility. Unlike traditional self-storage spaces, the unique needs of RV owners necessitate careful consideration of not just open spaces near recreational areas but also a thorough understanding of the demographics and zoning regulations of the potential location.

Ideal Locations for RV Storage Facilities

Mako Steel, a company specializing in self-storage building solutions, advises that open spaces near campgrounds, lakes, and rivers are ideal spots for RV storage facilities. Proximity to these recreational areas ensures potential customers can easily access their RVs when embarking on outdoor adventures. However, this should not be the sole determinant of the location.

Understanding the Demographics

Studying the area’s demographics surrounding a potential RV storage site is crucial. The RV Industry Association provides valuable insights, revealing that the average RV owner is a married 48-year-old homeowner with an annual household income of $62,000. This profile emphasizes the importance of selecting a location that aligns with the lifestyle and income level of the target customer base.

For instance, a site close to a cluster of apartment complexes might not be the most strategic choice, given the demographic profile. Mako Steel emphasizes that the location can truly make or break the success of an RV storage business, as construction costs won’t pay off if there aren’t enough regular, long-term renters.

Zoning Regulations Consideration

Zoning regulations play a pivotal role in determining the feasibility of a potential RV storage site. Before committing to a location, it’s essential to understand the existing zoning regulations and whether the land is already zoned for storage purposes. Attempting to rezone a property can be costly and time-consuming, involving hurdles that may impact the overall success and timeline of the project.

Strategic Site Selection

Consider a strategic approach to site selection that combines the appeal of recreational areas with a demographic match and compliance with zoning regulations:

Proximity to Recreational Areas: Identify sites near popular campgrounds, lakes, and rivers, ensuring accessibility for RV owners seeking convenient storage options for their vehicles.
Demographic Alignment: Analyze the surrounding area’s demographics to ensure that the profile matches that of the typical RV owner. Look for neighborhoods or regions with a higher concentration of married homeowners within the target income range.
Zoning Compliance: Prioritize locations that are already zoned for storage to avoid potential obstacles associated with rezoning. This streamlines the development process and minimizes regulatory challenges.
Competition Analysis: Evaluate the existing competition in the chosen location. While some competition is healthy, an oversaturated market may impact the facility’s ability to attract and retain customers.
Future Development and Growth: Consider the potential for future development and growth in the chosen location. A site in an expanding area may offer long-term benefits as the demand for RV storage grows.

The success of an RV storage facility hinges on the meticulous location selection. By considering the proximity to recreational areas, aligning with the demographic profile of RV owners, adhering to zoning regulations, and conducting a thorough analysis of the competitive landscape, investors can position their facility for long-term success in a burgeoning market.

Concentrate on facility configuration.

When building an RV storage facility, the facility’s layout is a critical component that directly impacts functionality, customer satisfaction, and the overall success of your business. Determining whether to offer indoor, outdoor or a mix of both types of storage is just the beginning. Let’s delve into the key considerations for facility configuration to ensure a well-designed and efficient RV storage space.

Indoor vs. Outdoor Storage

One of the primary decisions is whether to offer indoor, outdoor or a combination of both types of RV storage. While many tenants prefer enclosed spaces for added security and weather protection, the demand for open or canopy-covered spaces should not be overlooked. Striking a balance between enclosed and open spaces allows you to cater to a broader range of customer preferences and needs.

Mako Steel emphasizes that enclosed spaces offer superior security and weather protection, making them highly sought after by tenants. However, including open or canopy-covered spaces in your facility layout provides flexibility and accommodates various storage requirements.

Unit Dimensions and Layout

Determining the dimensions of your RV storage units is crucial for optimizing space usage and meeting the diverse needs of RV owners. The Parham Group, specializing in self-storage management, construction, and consulting, suggests a minimum width of 12 feet for an RV storage unit, with a maximum depth of 45 to 50 feet. A typical configuration might be a 14×40 unit occupying 560 square feet of land.

Consider offering a variety of unit sizes to accommodate different RV sizes and preferences. This flexibility enhances the attractiveness of your facility to a broader customer base, ensuring that you can meet the storage needs of various RV owners.

Entrance and Exit Considerations

Carefully planning how tenants enter and exit the property is a crucial aspect of facility configuration. Collaborate with local officials to ensure entrances and exits are designed to accommodate the size and maneuverability of RVs and trailers. Adequate space for turning radius, proper signage, and well-designed traffic flow contribute to a positive customer experience and minimize congestion on adjacent streets.

Mako Steel emphasizes the importance of assessing whether nearby streets can handle the traffic associated with RV storage. Work with local authorities to address infrastructure concerns and ensure smooth access to and from the facility if necessary.

Security Measures and Surveillance

Implementing robust security measures is paramount for an RV storage facility. Consider installing state-of-the-art surveillance cameras, access control systems, and adequate lighting throughout the facility. The layout should maximize visibility and security, providing peace of mind to tenants who trust you to store their valuable RVs.

Collaboration with Local Authorities

Collaborating with local authorities is essential for entrance and exit considerations and compliance with zoning regulations. Ensure your facility adheres to all local laws and obtain the necessary permits before construction begins. Building positive relationships with local officials can facilitate a smoother development process and contribute to the long-term success of your RV storage business.

Focus on security

In RV storage, where vehicles can range from $35,000 to $300,000, ensuring the safety and security of these valuable investments is paramount. Building an RV storage facility requires a meticulous approach to security measures, amenities, and efficient operational management. Let’s delve into the key considerations to safeguard your client’s assets and the success of your business.

Security Measures: Safeguarding Valuable Investments

Mindful of the substantial investment in their vehicles, RV owners prioritize security when choosing a storage facility. The Parham Group underscores the importance of implementing robust security measures, starting with perimeter fencing. Options include chain link fencing, razor wire fencing, or even solid block walls, depending on the level of security desired.

Additionally, offering 24-hour secured access is crucial. Combine this with advanced security features such as camera surveillance and key-coded entry gates to provide comprehensive protection. A well-lit facility enhances security and contributes to a positive customer experience, assuring RV owners that their vehicles are stored safely and monitored.

Investing in cutting-edge security technology not only safeguards your clients’ assets but also enhances the reputation and trustworthiness of your RV storage facility.

Amenities that Attract and Retain Customers

Beyond security, potential tenants are drawn to amenities that enhance their storage experience. Consider amenities that cater to the specific needs and preferences of RV owners. According to the Parham Group, providing access to free water and offering metered or flat-fee electricity are key considerations.

Free Water Access: RV owners often must clean their vehicles or refill water tanks. Offering free water access demonstrates your commitment to meeting their practical needs and enhancing customer satisfaction.
Electricity Options: Providing metered or flat-fee electricity options allows RV owners to power appliances, charge batteries, and maintain their vehicles while in storage. This amenity adds value to your storage offerings and attracts a broader clientele.

Operational Management:

Efficient operational management is crucial for the success of an RV storage facility. Storable technology offers a comprehensive suite of tools and solutions to streamline various aspects of your business:

Marketing Tools: Effectively market your RV storage facility to reach your target audience. Storable’s marketing tools enable you to create a strong online presence, engage with potential customers, and promote your facility.
Websites: Establish a professional and user-friendly online presence with Storable’s website solutions. A well-designed website not only attracts customers but also provides essential information and enhances the credibility of your business.
Management Software: Storable’s management software simplifies day-to-day operations, from booking and reservations to pricing structures and customer communication. Efficient management contributes to a seamless customer experience and optimized facility performance.
Insurance: Protect your business and your clients with insurance solutions from Storable. Comprehensive insurance coverage ensures that your facility and clients’ assets are safeguarded against unforeseen events.
Payment Processing: Streamline payment processes with Storable’s payment processing solutions. Secure and efficient payment options contribute to a positive customer experience and ensure timely and hassle-free transactions.

Building an RV storage facility

It is essential to take a comprehensive approach to build and operate a successful RV storage facility. Priority should be given to implementing security measures that instill confidence in clients and protect their valuable investments. Additionally, offering amenities that cater to the needs of RV owners can greatly enhance the overall storage experience.

Utilize Storable technology to streamline operational management, from marketing and website development to management software, insurance, and payment processing. By combining these elements, you can position your RV storage facility as a trusted and efficient solution in a growing segment of the storage industry.

FAQ’s

1. What is the cost to develop an RV storage facility?

The cost to develop an RV storage facility runs into the millions of dollars. The exact cost will vary depending on the size of the facility, the location, and the amenities offered. However, you can expect to pay anywhere from $1 million to $5 million to develop an RV storage facility.

Here is a breakdown of the typical costs involved in developing an RV storage facility:

Land: $200,000 to $500,000
Grading and paving: $100,000 to $200,000
Fencing and gates: $50,000 to $100,000
Lighting: $20,000 to $50,000
Drainage: $10,000 to $20,000
Security system: $10,000 to $20,000
Office and restroom facilities: $50,000 to $100,000

2. What are the ideal locations for RV storage facilities?

The ideal locations for RV storage facilities are areas with high concentrations of RV owners and easy access to major highways. Some specific examples of ideal places include:

Near campgrounds and RV parks
Near lakes, rivers, and other recreational areas
Near major highways and interstates
In areas with a growing population of RV owners

3. What is the minimum width of an RV storage unit?

The minimum width of an RV storage unit typically is 12 feet. However, many RV owners prefer units that are 14 feet or wider. The length of an RV storage unit can vary depending on the size of the RV, but it is typically between 30 and 40 feet.

4. What security measures should be taken when building an RV storage facility?

RV owners are very concerned about the security of their vehicles, so it is essential to take all necessary security measures when building an RV storage facility. Some of the most important security measures include:

Perimeter fencing: This should be at least 6 feet tall and made of a sturdy chain link or steel material.
Gated entry: This should be controlled by a key code or keypad.
Security cameras: These should be installed throughout the facility to monitor activity.
Security lighting: This should be installed in all facility areas to deter crime.
On-site security personnel: This can be a good option for facilities in high-crime areas.

5. What amenities should I offer at my RV storage facility?

In addition to security, RV owners are also looking for amenities to make their lives easier. Some of the most popular amenities include:

RV hookups: This includes water, electricity, and sewer hookups.
Dump stations: This allows RV owners to dispose of their waste.
Tire repair stations: This can be a helpful amenity for RV owners with flat tires.
Common areas: This can be a place for RV owners to relax and socialize.
Laundry facilities: This can be a valuable amenity for RV owners who are staying at the facility for an extended period.

By offering these amenities, you can attract more RV owners to your facility and increase your revenue.