Maintaining a successful self-storage investment is all about meeting customers’ needs as they evolve. These days, consumers are spending more time adventuring with their families away from crowded cities. As a result, RV sales are reaching new heights — and boats are jetting off the lot at record rates, too.
A savvy self-storage investor may see an opportunity in these consumer trends. New RV and boat owners will need a convenient place to store their vehicles during the offseason. Vehicle storage just might be your ticket to record profits.
Should I Offer RV and Boat Self Storage?
Generally speaking, if you have the space to offer vehicle storage on your property, then you should!
New offerings that meet specific customer needs can increase the value of self-storage facilities in the long term while boosting cash flow immediately. Vehicle storage will bring in new clients while giving you a reason to increase monthly rates. Some owners have been able to charge between 25-40% more within their first two years of offering vehicle storage.
Of course, self-storage investors should consider a few other factors before they jump for vehicle storage accommodations. You should check the demographic in your area to see if people are likely to purchase boats or RVs. You’ll also want to consider competition with other self-storage facilities. Fortunately for private owners, many real estate investment trusts (REITs) stay away from vehicle storage. If REITs are your main competitors, vehicle storage can give you a leg up.
How to Update Your Self-Storage Facility for RVs and Boats
Self-storage facilities are flexible, so equipping your property with RV and boat accommodations should be fairly easy and inexpensive. There are three types of vehicle storage you can add to your property — covered garages with roll-up doors, open canopy-style garages or uncovered lots.
Start by creating space for class-A vehicles so you can accommodate the largest boats and RVs. Garages for class-A vehicles should be 16 feet wide, 50 feet deep and 16 feet high. Smaller garages for class-B or class-C vehicles can be 12 feet wide, 16 feet tall and either 30 feet deep for boats or 40 feet for RVs.
Get More Self-Storage Ownership Tips From IRE
Investment Real Estate is here to help self-storage investors find success in the industry. We have plenty of helpful resources on our website, so browse our blog to learn more.