Factors Influencing RV Storage Facility Occupancy:

In understanding the occupancy dynamics of RV storage facilities, several key factors come into play. From the location’s appeal to RV owners and the facility’s size and offerings to the effectiveness of marketing strategies and the influence of seasonal variations, these elements collectively shape the occupancy rates within these storage spaces. Let’s delve into each factor to unravel their impact on RV Storage Facility Occupancy.

Location and Regional Demand:

1. Proximity to Popular Travel Destinations and RV-Friendly Routes:
   • A strategic location near popular travel destinations or along routes frequented by RV enthusiasts can significantly influence occupancy. RV owners often prefer storage facilities that are conveniently located, reducing the hassle of transportation and making it easier for them to access their vehicles. Many of our customers come to us because they saw the facility from the freeway. No amount of marketing can compete with that kind of exposure.
2. Regional Variations in RV Ownership and Seasonal Demand Fluctuations:
   • Understanding the demographics and preferences of the local RV community is crucial. Different regions may exhibit variations in RV ownership rates and seasonal preferences. Facilities should adapt their services and marketing strategies to align with the unique demands of each region, taking into account factors such as climate and local events that influence RV usage. Being located in a city with a fast growing population is hugely positive. Differentiating from the competition is also important. We tend to focus on outdoor storage precisely because everyone else seems to focus on covered and enclosed storage.

Facility Size and Capacity:

1. Number and Type of Storage Spaces Available:
   • The capacity of an RV storage facility is a fundamental factor influencing its occupancy levels. Obviously, attaining full occupancy is more difficult on a 500 space facility than a 200 space facility. And in theory, the size of the facility has been determined by studying the market demand and competition. In addition, offering different types of spaces (open, covered, or enclosed), and offering different sizes of spaces will help in accelerating occupancy.
2. Amenities and Services Offered (e.g., Security, Climate Control):
   • Beyond size, the quality of amenities and services provided significantly contributes to a facility’s appeal. Enhanced security features, such as surveillance systems and secure access controls, instill confidence in RV owners. Climate-controlled storage options further safeguard vehicles from environmental damage, making the facility more attractive to owners who prioritize the well-being of their RVs.

Marketing and Promotion Strategies:

1. SEO Optimized Website
   • It amazes me that even large RV storage facilities rank poorly in Google searches. But, perhaps that’s not so surprising when those facilities are already full. Nevertheless, having a Search Engine Optimized (SEO) website is key to ranking well in Google. Getting into this would require an entirely different article, but let’s just say that you want your website to be in the first page when people search for RV storage facilities in your area. That’s because you want the most organic traffic to your website that you can get. Below is how our website’s performance has improved over the last year on our newest facility.

1. Effective Advertising to Target RV Owners:
   • Crafting compelling and targeted advertising campaigns is essential for reaching the RV owner demographic. Utilizing various channels, including digital platforms, social media, and traditional advertising, ensures broad visibility. Highlighting the facility’s unique selling points, such as security measures and convenient location, can be particularly effective in attracting potential customers. We like using Google Ads, Yelp and Craigslist for digital marketing. We also send mailers to specific target neighborhoods. And we love a big banner visible from the freeway.
2. Promotional Events and Partnerships with RV Dealerships:
   • Hosting promotional events and forming partnerships with RV dealerships can create valuable exposure and foster a positive reputation within the RV community. Collaborating with dealerships allows for mutual referrals and endorsements, increasing the likelihood of RV owners choosing the storage facility for their needs. We’ve visited all the local dealers and handed them out stacks of business cards. We’ve also brought pastries to RV dealer sales events held at the county fairgrounds.

Seasonal Variations and Peak Periods:

1. High Demand During Vacation Seasons:
   • Understanding the seasonal nature of RV travel is crucial for anticipating demand peaks. Vacation seasons often witness a surge in RV usage, leading to increased demand for storage solutions. Storage facilities can tailor marketing efforts and operational readiness to align with these peak periods, ensuring optimal occupancy and customer satisfaction. The end of Summer is a great time to get new customers. We opened one of our facilities a bit too late (October) for these customers, but still managed to get a couple of customers per week through the winter months.

By addressing these factors comprehensively, RV storage facilities can refine their strategies, enhance their offerings, and ultimately optimize their occupancy rates.

Planning and Preparation for RV Storage Facility Occupancy:

As mentioned earlier, understanding the market and the competition is crucial to the projecting the leasing up period. This is where utilizing a feasibility consultant can be helpful. However the investor can dive even deeper into studying the competition. I like using the clock feature in Google Earth to see what newer RV developments achieved in terms of occupancy. Keep in mind that this isn’t entirely accurate as many spaces could look vacant, but they are actually occupied. Nevertheless, here are a few screenshot to help illustrate this approach.

RV Storage Facility Near Completion

RV Storage Facility During Lease Up. Notice the smaller spaces appear to be leasing faster than the larger spaces.

RV Storage Facility Near Full. This last aerial image was taken 8 moths later than the 2nd aerial image.

Additionally, when studying the market and competition it is important to give careful consideration to the unit mix and type. We’ve noticed a tendency for newer RV storage facilities to provide large spaces (40 feet long and more). We also noticed a newer facility that was originally designed to include 75′ long spaces and later re-designed for much smaller spaces. At the same time, we’ve noticed a sales trend for smaller RVs. As such, we designed our facility with a maximum space length of 35′ and 25% of our spaces being 10×25 or smaller.

So far, our research seems to be paying off, as our smaller spaces seem to be leasing up faster than our larger spaces. And let’s not forget that we can charge higher rates per square foot on smaller spaces than larger spaces. Meanwhile, our competitors continue to develop new facilities with larger spaces.

Having said that, it is a good idea to incorporate some flexibility into the the unit space design. At our facility we have the ability to combine back to back spaces to offer larger sizes. For example, we can combine two 12×20 back to back spaces to offer a 12×40 space, or we can combine two 12×35 back to back spaces to offer a 12×70 space. See also 12 RV Storage Facility Design Tips for Maximum Profitability

Below is one of the mix compositions we considered earlier on. As we got smarter we trended toward smaller spaces. The only exception is that we changed our 11′ wide spaces to 12′ wide, but that was mostly related to a reduced drive isle width and our space layout being at 90 degrees.

Case Studies on RV Storage Facility Occupancy:

At our first facility our feasibility study and underwriting suggested that we could expect to attain an occupancy of 85% within a year. That may seem fast, but consider that this was only a 182 space facility in a market with significant demand for the product we are offering. We also opened the facility during the slower months and had deploy additional marketing capital to overcome this challenge. See also RV Storage Feasibility Study: Everything You Need to Know

At the end of the day revenue is more important than occupancy. During initial leas up it is common to have introductory promotions. We began by offering 50% off for three months. A few months later we reduced that from three to two months. Obviously, this had an impact on revenue. The good news is that during underwriting we included even more conservative assumptions. In other words, despite our promotions we are ahead of our projections when it comes to revenue.

Tips for Accelerating RV Storage Facility Occupancy and Boosting Revenue:

1. Effective Marketing and Advertising:
   • Leveraging digital platforms and social media (Google, Yelp, Facebook, Craigslist, etc).
   • Utilizing referral programs and discounts
2. Incentives and Promotions:
   • Early-bird discounts and promotions for new customers (i.e. 50% off for the first three months)
   • Loyalty programs for existing clients. We don’t offer this yet, but in one occasion a customer asked if we had any promotions for existing customers. In this situation we offered the customer an additional month at the 50% discount rate.
3. Collaborations with RV Dealerships and Clubs:
   • Building partnerships for mutual benefit. We’ve sent customers looking for covered RV storage to the new facility across the freeway. And I am sure they are sending customers looking for more affordable storage to us.
   • Tapping into existing RV communities for customer referrals. Developing relationships with RV dealers, RV repair shops, etc is extremely valuable.
4. Streamlining Administrative Processes:
   • Implementing user-friendly online registration. As shared before, we use Tenant Inc for facility management software. And we’ve customized it to keep the website simple and provide an easy user experience. Our customers like it and tell us about it when they leave feedback. See also Which Facility Management Software Is a Better Choice for RV Storage Facilities: StorEDGE vs. Tenant Inc?
   • Efficient paperwork processing for quick customer onboarding. Everything our customers do is online. In fact, all of it can be done with a smart phone. Customers like this and this leads to positive reviews, which improves our social media scores and Search Engine Optimization (SEO)

Conclusion:

As the RV market continues to grow (RV Industry Poised for Significant Growth in 2024) developers will continue to reap the benefits of increased RV Storage demand. Among other things, developers must consider the time it takes to fill an RV storage facility. This is a complex interplay of location, planning, marketing, and adaptation to market dynamics. By understanding these factors and adopting strategic approaches, RV storage facilities can not only optimize their fill times but also ensure sustainable growth in a thriving industry. As the RV community continues to expand, the importance of efficient and customer-friendly storage solutions becomes paramount, making it essential for storage facility operators to stay ahead of the curve in maximizing RV Storage Facility Occupancy.

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Which is the best facility management software (FMS) for RV Storage facilities in 2024? StoreEdge by Storable or Tenant Inc (aka Hummingbird). Below is a comparison of these two top performing FMS products, based on my own experience.

Facility management is the backbone of organizational success, and the right facility management software for an RV storage facility can be a game-changer. In this comprehensive comparison, we will dive deep into the features of two leading solutions, Storable and Tenant Inc, to help you make an informed decision in the realm of facility management software.

Over the last several months, I had the opportunity to research, evaluate, and work with both facility management software solutions.  However, my use case was for RV storage facility management rather than for self-storage facility management.  In addition, my use case was for a new facility coming to market.  This is an important clarification, because “coming soon” features were important to me. Finally, my business model required the RV storage facility to be fully automated. See also How to Develop or Upgrade for Self-Service RV Storage | Automation

Do RV Storage Facilities Have Different FMS Needs?

Before addressing which facility management software is a better choice for RV Storage facilities it is important to address key differences between traditional self-storage facilities and RV storage facilities. In short, RV storage facilities require less customer interaction than traditional self-storage facilities. This may in most cases require a simpler facility management approach. In this case a simple FMS product can be better.

As to why RV storage facilities may require less customer interaction, consider that RV and boat owners tend to remain in lease for longer durations than self-storage customers. RV and boat owners simply want a secure and convenient place to secure their toys. Self-storage owners on the other hand may be looking to rent space, buy boxes and packaging materials, renting a trailer, etc.

When selecting a FMS it is important to consider a software that tracks vehicle information. Recording information on the vehicle such as vehicle type, model, vin number, etc. is necessary for managing the facility and for issuance of liens. Not all FMS are able to track information on what is being stored in this manner.

Why Storable vs Tenant Inc?

Prior to choosing a facility management software I researched several products, including StorEDGE (from Storable), Tenant Inc, SiteLink (from Storable) 6Storage, Storage Commander, WebSelfStorage, Easy Storage Solutions, and QuickStor.

There were certain things I knew I wanted, in the order of priority shown below:

1. Web-Based Software – I wanted to be able to manage my facility from anywhere in the world from any computing device, even a smart phone.  All products were web-based, except for SiteLink.
2. Smartphone Gate Access – I wanted customers to be able to open the gate to the facility using a smartphone.  After much research I concluded that I wanted a Bluetooth based app.  This led me to selecting keypads from SpiderDoor.  This narrowed the list as companies such as 6Storage weren’t fully integrated with SpiderDoor at the time. 
3. 24/7 Self Enrollment – I wanted customers to be able to rent a unit, sign documents, make payment and access the facility through an integrated website.
4. Dynamic Pricing – See “What is Dynamic Pricing? I wanted pricing to be adjusted automatically according to occupancy.  This eliminated Easy Storage Solutions from my list.
5. QuickBooks Integration – I already use QuickBooks for another business and wanted to keep things simple, to the extent possible. 
6. Interactive Map – I wanted customers to see an interactive map of the facility where they could move the cursor over available units to see unit pricing, size, availability, features, etc.  Unfortunately neither one of the products I researched offered this feature.

After much consideration there were two products that met my requirements.  These were StoreEdge and Tenant Inc.  Because StoreEdge is the market leader I signed up with them and began my FMS journey.  However, during the onboarding process I learned that StorEdge had certain limitations with the product inventory management.  This led me to look into Tenant Inc and eventually ended up making the switch. 

Space Inventory Management

In my case I was dealing with a brand-new facility.  For this reason I wanted a website that allowed customers to make reservations in advance, much like you do when you make a reservation through Airbnb.  Things were further complicated by the fact that the actual opening date of the facility was a moving target.  Trying to manage this situation is how I learned that StorEdge didn’t have an easy solution for managing space inventory over time.  Tenant Inc did. 

The screenshot below shows Tenant Inc’s user interface for making reservations in advance.  In this case, reservations can be made 14 days in advance, but the software settings can be changed to any number of days.

Onboarding StorEdge Vs Tenant Inc

My experience with StoreEdge left much to be desired.  When Onboarding with Storable I dealt with too many departments and individuals.  There were various instances in which I didn’t know who was helping me with a given question or request.  And in more than one case my questions required multiple follow ups to get a response. 

Another frustration with the onboarding process with Storable is that I had to provide the same information (i.e facility name, facility address, contact information, etc) to multiple departments and individuals. 

When onboarding with Tenant Inc the process was much easier as I dealt with one single individual.  This person helped me with setting everything from publishing the website to selecting the right settings for the facility management software.

The Market Leader Vs the Innovative Newcomer

Originally, I was convinced that StorEdge was the way to go because StorEdge is the undisputable market leader.  As I became familiar with this product I began to wonder if Storable has become too big, a bit dated and perhaps too comfortable being the market leader. 

With Tenant Inc, I had the sense that this was a hungrier, nimbler and a more innovative team.  This comes with some challenges, but most of these are relatively minor things. 

• SpiderDoor Integration –  SpiderDoor isn’t as integrated with Tenant Inc as it is with StoreEdge.  For example, with StoreEdge customers can use the same app they use to open the gate to pay rent.  That’s not yet available with Tenant Inc.  However, this isn’t a necessity for me, because Tenant Inc handles rent payments to my full satisfaction.
• Telephone Integration – StorEdge has full telephone integration.  When customers call, leave a message or text, all the call information is automatically logged into the FMS.  Tenant Inc doesn’t have the same level of phone integration.  I use DialPad to route calls and often I have to manually enter contact information received from DialPad into Hummingbird (Tenant Inc’s actual property management software)

FMS Cost Comparison

When I began the FMS selection process I was prepared to pay a premium for the best product. After all, the right FMS would be key in fully automating operations and would result in significant operational savings. Nevertheless, I wanted to quantify what that premium would be.

When it came to StoreEdge it became evident that I needed to account for things like a one time setup fee of $799, and monthly fees of $388 for the facility management software, a website, and integrated access control.

Tenant Inc on the other hand didn’t have a one time setup fee and the only monthly fee of $99 included the facility management software. And there were no additional fees for the website or for access control integration

In addition to these costs I needed to compare merchant fees. StoreEdge quoted a transaction fee of $0.25 per transaction and a transaction rate of 2.19%. In addition, StoreEDGE had a monthly merchant fee of $19.95. Tenant Inc quoted a transaction fee of $0.15 per transaction and a rate of 2.95%.

To make an apples to apples comparison I annualized costs assuming a number of transactions per year and a given revenue amount per year. The all in annualized cost for StoreEDGE came to a total of $10,390 vs a total of $8,165 for Tenant Inc.

The premium for going with the industry leader, StoreEDGE, was $2,225. That’s a premium I would have been okay paying for, except that at this point I was convinced that Tenant Inc was the better FSM for me.

Conclusion:

In the dynamic world of facility management software, choosing between Tenant Inc and StoreEdge hinges on your unique needs and industry focus. Whether you operate diverse properties or specialize in RV storage, understanding the intricacies of these solutions is crucial for informed decision-making. Both are great FMS products.  For my particular needs, Tenant Inc was the better choice. 

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One common question among investors considering investing in RV storage facilities is how do you value an RV Storage facility? Evaluating these types of investments isn’t much different than other similar investments. In this article, we will explore eleven effective evaluation methods specifically tailored to assess RV storage facilities.

Investing in RV storage facilities can be a lucrative opportunity, given the rising popularity of recreational vehicles. However, properly evaluating the potential of such investments requires a comprehensive analysis.

By understanding these methods, investors can make informed decisions and identify the most promising opportunities in the market. From comparative market analysis to cash-on-cash return and feasibility studies, we will delve into each approach, highlighting its relevance and practical application. Let’s dive into the essential evaluation methods that will guide you towards successful investments in the world of RV storage facilities.

Three Most Common Methods for Evaluating Real Estate Businesses (i.e. RV Storage)

Here are the three most common methods for evaluating real estate based businesses such as RV storage facilities.

1. Comparative Market Analysis for RV Storage Facilities: A comparative market analysis specifically tailored to RV storage facilities involves assessing similar properties in the local market area that have recently sold or are currently listed. This approach helps determine the value of the RV storage facility based on recent sales prices, rental rates, occupancy rates, and market trends specific to RV storage. One challenge with this method is that RV storage sales don’t have much for volume. Therefore, it is difficult to obtain sufficient sales data for a given market.
2. Income approach (Cap Rate):  The cap rate is a valuable metric for evaluating the income potential of RV storage facilities. By dividing the property’s net operating income (NOI) by its purchase price, investors can determine the cap rate specific to the RV storage industry. This helps gauge the potential return on investment and compare different RV storage opportunities. Again, the challenge is that without sufficient data points, comparing data points for cap rates is challenging.
3. Replacement Cost Analysis:  This approach involves estimating the cost of replacing the facility, taking into account factors such as land value, construction costs specific to RV storage, and any necessary improvements or upgrades. By considering the potential expenses involved in constructing a similar facility from scratch, investors can better understand the value of the existing RV storage property and its potential for long-term returns. The challenge with this approach when evaluating RV storage facilities is that replacing the exact location of a given facility is practically impossible. Additionally, some RV storage facilities have been grandfathered in and can’t be replaced, even in the same location.

In real estate, some appraisers also look at metrics such as price per square feet. However, when evaluating RV storage facilities, this metric gets a bit confusing since a facility can be looked at in terms of rentable square feet or gross square feet. Furthermore, this metric looks at cost only. A proper evaluation should also consider income.

Other Metrics and Tools for Evaluating RV Storage Facilities

• Cash-on-Cash Return for RV Storage Facilities: The cash-on-cash return is a relevant measure for assessing the profitability of an RV storage facility. By calculating the annual cash flow generated by the facility relative to the initial cash investment, investors can understand the income potential and return on investment specifically for RV storage. This is by far my favorite method for assessing RV storage facilities and other real estate based businesses. We’ll dig in deeper on why on a separate article.
• Gross Rent Multiplier (GRM) for RV Storage Facilities: The gross rent multiplier can be adapted to evaluate the value of RV storage facilities. It involves dividing the purchase price of the facility by its gross rental income. This approach provides a quick and straightforward way to compare RV storage properties and estimate their value based on rental income. Unfortunately, this only looks at the income side of the equation. Therefore, it doesn’t tell us what the value of a given facility is.
• Return on Investment (ROI) for RV Storage Facilities: Return on investment is a comprehensive measure that considers the total return generated by an RV storage facility, encompassing both income and potential appreciation. By analyzing cash flow, equity buildup, and potential value appreciation, investors can assess the overall profitability of the investment.
• Net Present Value (NPV) for RV Storage Facilities: Net present value can be utilized to evaluate the financial viability of an RV storage facility. By discounting future cash flows, including rental income and potential resale proceeds, to their present value, investors can determine if the investment is financially sound.
• Internal Rate of Return (IRR) for RV Storage Facilities: The internal rate of return is a metric that calculates the annualized rate of return an RV storage facility is expected to generate over its holding period. This analysis considers the timing and magnitude of cash flows, providing insights into the investment’s profitability.
• Market Rental Analysis for RV Storage Facilities: Conducting a market rental analysis is crucial when evaluating the income potential of an RV storage facility. This process involves researching and analyzing rental rates for similar RV storage facilities in the local market, considering factors such as location, amenities, and demand from RV owners.
• Feasibility Study for RV Storage Facilities: A feasibility study tailored to RV storage facilities assesses the viability of the investment project. It considers factors such as market demand for RV storage, competition, construction costs, operational expenses, potential revenue, and associated risks. This study helps determine if investing in an RV storage facility aligns with the investor’s goals and if it is financially feasible.

Conclusion – Evaluating RV Storage

Investing in RV storage facilities demands a systematic approach to ensure informed decision-making and maximize potential returns. By utilizing the ten evaluation methods discussed in this article, investors can comprehensively analyze the income potential, market value, and profitability of RV storage facility investments. Each method provides unique insights, such as market trends, cash flow analysis, and financial feasibility, enabling investors to gauge the viability of their investments. By combining these evaluation methods and conducting thorough due diligence, investors can confidently navigate the RV storage facility market, identifying valuable opportunities that align with their investment objectives. Remember, a well-informed evaluation paves the way for successful investments in the promising realm of RV storage facilities.

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How Much Money Do you Need to Retire?

People often as questions such as how much money do you need to retire? When they ask these questions they are thinking of a lump sum of money. A better way to think about this question is in terms of how much money you need per month. Imagine owning an asset that produces enough passive income that you don’t need to work or worry about money.

What is a Passive Investment?

Passive income refers to earnings generated with minimal effort or ongoing involvement from the investor. It is income that is earned on a regular basis, often without the need for direct labor or active participation. In the realm of investments, very passive options such as investing in dividend stocks or triple net lease real estate can generate income with little ongoing management or intervention.

On the other hand, owning and managing a business is a far cry from passive income. It involves significant time, effort, and active participation in various aspects of the business, such as operations, marketing, customer service, and strategic decision-making. While managing a business can potentially provide greater control and higher returns, it requires substantial commitment and is far from a passive endeavor.

Investing in an RV storage facility can be viewed as a hybrid approach that combines elements of both a real estate play and investing in a business. Operating an RV storage facility does require attracting and retaining customers, providing security, a level of facility, etc. The success of the investment relies on effective business management practices, customer satisfaction, and generating a steady stream of rental income.

Un-Manned RV Storage Facilities Vs Full Service RV Storage Facilities

Certain RV storage facilities, particularly automated or unmanned facilities with minimal or no amenities, can be considered more passive compared to their more sophisticated full service counterparts. Unmanned facilities typically operate on a self-service model, where customers have easy access to their storage spaces without requiring on-site staff assistance. These facilities often have basic features such as secure gated access and surveillance systems to ensure the safety and security of the stored RVs. With fewer amenities to manage and minimal customer interactions, the level of involvement and day-to-day operational responsibilities for the investor can be significantly reduced.

In contrast, facilities that offer a range of amenities like retail products, sewer dump stations, valet parking, and additional services require more active management and customer engagement. The inclusion of these amenities introduces additional responsibilities, such as inventory management, maintenance of amenities, and providing a higher level of customer service. Consequently, the level of passivity decreases as the facility becomes more sophisticated and offers a broader range of services to RV owners.

The video below shows a full service RV Storage facility with valet service and anything else you can imagine. As you view the video consider the number of employees required to manage and operate this type of facility.

Steady and Consistent Cash Flow

Whether the RV storage facility is manned or unmanned, most of these facilities can generate serious cash. The booming outdoor recreational industry, particularly after COVID, has led to an exponential growth in the demand for boat and RV storage solutions. Boat and RV owners often struggle to find suitable locations to store their toys when not in use or during the offseason. This surge in demand presents an enticing opportunity for investors to capitalize on the boat and RV storage sector as a reliable source of passive income, assuming it is considered passive.

Investing in RV storage offers the advantage of a steady and consistent cash flow. Unlike other types of real estate investments that may experience seasonal fluctuations or periods of vacancy, RV storage facilities tend to maintain a relatively stable occupancy rate throughout the year. RV owners typically require storage for extended periods, ensuring a consistent rental income stream for the facility owner. Consider that most RV owners use their RVs for short periods of time and tend to continue to pay for storage to save their spot, even when their RVs are not stored.

Minimal Maintenance and Lower Overhead Costs:

Compared to other real estate investments, RV storage facilities require minimal maintenance and have lower overhead costs. The structures themselves are usually simple, consisting of covered or uncovered parking spaces, which simplifies maintenance and management. Additionally, since RV owners are responsible for maintaining their own vehicles, the facility owner’s maintenance responsibilities and expenses are significantly reduced.

The amount of maintenance work for an RV storage facility depends largely on the type of facility. A facility with building structures, bathrooms, climate control, etc. will obviously require more maintenance than a facility that is essentially a parking lot with little or no amenities.

Conclusion – RV Storage as a Passive Income Investment

Investing in RV storage facilities offers individuals an opportunity to generate passive income while meeting the growing demand for secure RV storage solutions. With its steady cash flow, lower maintenance costs, and the potential for a competitive advantage through location and amenities, RV storage stands out as an attractive investment option. However, navigating zoning restrictions and local regulations is crucial, necessitating thorough research and compliance to ensure a smooth and legal operation. Additionally, conducting a feasibility study is essential to evaluate the market demand, upfront costs, and potential revenue. With careful planning and execution, investing in RV storage as a passive income stream can prove to be a rewarding endeavor for savvy investors, providing long-term financial stability and growth in the ever-expanding RV industry.

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Land Acquisition:

The cost of acquiring land for an RV storage facility can vary widely. On average, expect prices to range from about $2 to $5 per square foot for development to pencil out. Obviously the cost of land depending on location, accessibility, and local real estate market conditions. Furthermore, higher RV storage rates will justify higher land acquisition costs.

It is also worth noting that when we speak of this costs we are speaking of $/SF in terms of gross SF. The actual RV storage facility can’t occupy the entire site due to things like right of way dedication, landscaping buffers, the need to provide storm drain ponds, etc.

Design Costs:

Design costs are an essential aspect of building an RV storage facility. Hiring an architect or design professional to create a functional and aesthetically pleasing facility can cost about $100,000 for a basic design. These costs include conceptual design, blueprints, engineering plans, permitting applications, and any necessary revisions to ensure compliance with local regulations and optimize the facility’s layout for maximum efficiency.

When considering design costs I recommend allocating at least $15,000 for geotechnical engineering. This will include minimal site investigations, determining soil stripping depths and surfacing recommendations.

Diligence Costs:

A basic feasibility study will costs around $10,000. A basic Phase I Environmental Site Assessments costs around $3,000. A property survey can cost around $5,000, depending on the size of the lot and the amount of vegetation. In some cases it may be necessary to do some clearing to facilitate a land survey.

Permitting Costs:

I’ve spent over $50,000 in permitting fees for a facility that is simply a parking lot with no utilities. Permitting costs will depend greatly on the type of facility and on what permitting agency is involved. When developing in any city in California you’ll spend significantly more time and money than when developing in rural Montana.

To estimate permitting costs it is advisable to contact the permitting agencies to inquire about the process, schedule fees, and permitting durations.

Construction and Infrastructure:

The cost of building an RV storage facility will depend on the type of RV storage facility. A basic outdoor storage facility with asphalt paving, security fencing, a stormwater pond, etc can cost about $400,000 per acre to develop.

Adding steel structures for covered RV storage can cost around $35 per square foot. When developing enclosed RV storage costs can be upwards of $50 per square foot. The biggest factor to keep in mind when building steel structures is the volatility associated with steel prices. For properly estimating steel costs it is best to speak directly with steel suppliers in the industry, such as the guys at Makosteel.com

Conclusion – Cost to Build an RV Storage Facility

So, how much does it cost to build an RV storage facility? The all in costs to build a paved open storage facility with a stormwater pond, security fencing, etc , can range from about $400,000 to $500,000 per acre. That figure does not include land costs.

In conclusion, building an RV storage facility entails a range of costs that must be carefully assessed and considered. From land acquisition to construction, storage units, site preparation, landscaping, and ongoing maintenance, every aspect demands financial planning and budgeting. Understanding the cost implications allows for realistic expectations and better decision-making throughout the process. By comprehensively analyzing and accounting for the various cost factors, you can embark on the construction of an RV storage facility with confidence, ensuring its long-term success and profitability.

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Before getting into the design considerations it is worth noting that the location of the RV facility is fundamental to its success. The ideal site is easily accessible, preferably near major highways or popular RV destinations. I’ve heard someone say that easily accessible facilities are within 3 turns from a major highway or artery.

And as you probably know by now, you must check for local zoning requirements and regulations to ensure you can develop the type of facility you envision. In many cases this means the property should be zoned for light industrial or for commercial use.

As we explore the key elements of RV storage design, let’s keep in mind that a well-designed layout should maximize the available space, allowing for efficient storage and easy maneuverability of large RVs.

RV Storage Facility Design

Select The Right Facility Type (Outdoor, Covered, Enclosed)

Selecting right type of RV storage that is to be offered is obviously a major consideration. This will be dictated by your business model, feasibility study, market demand and competition, etc. In many cases, it makes sense to have a mix of RV storage types and parking sizes.

I prefer outdoor storage facilities with a reasonably high number of spaces per acre. That could mean somewhere in the vicinity of 160 spaces per acre, but that’s not always feasible. The reason why I prefer outdoor storage is that I am more of a land play type of investor. See also Industrial Outdoor Storage (IOS): A Growing Investment Opportunity

RV Storage Site Layout

As discussed in previous articles, the shape of the lot will greatly impact site layout. A rectangular lot will result in a more efficient use of space than say a triangular lot or even a square lot. With this in mind, it is also important to maximize the number of rows of parking spaces without compromising drive isle widths to the detriment of the facility. Often this can be accomplished by adjusting the length and the angle of the parking spots.

For example, if you have a lot that is 240′ wide you may be able to design the facility to have four rows of straight parking spaces for 40′ long RVs, while providing two 40′ drive isles. That is you’ll have a row of parking spaces, then a driving aisle, then two rows of back to back parking spaces, then a driving aisle, and one more rows of parking spaces.

If your lot is only 180′ wide you may consider designing your facility to provide four rows of mixed space sizes and angled spaces. See example below from an RV Storage facility in Williamsburg, VA.

That may be a better design than that of a facility with only three rows of 40′ long straight parking spaces and tight driving aisles. In short, the first image below is more efficient than the second image.

Having said that, the design below is extremely efficient as it doesn’t have corner issues. It does require two gates though.

Angled Parking Spaces vs Straight Parking Spaces

Angled parking spaces vary generally from 45 degrees to 60 degrees. These are preferred by users as they are easier for ingress and egress. For this reason, angled parking spaces don’t require driving aisles that are as wide as when designing facilities for straight parking spaces.

However, keep in mind that you’ll be able to fit more parking spaces in a given row if you use straight parking design than if you use angled parking design. That’s because straight parking spaces generally fit better at the corners of the lot than angled spaces. For this reason, angled spaces make more sense when designing the facility with long rows of parking spaces rather than with short rows. In either case, it is important to design the parking rows so that these lay in a longitudinal direction.

Additionally, when designing a facility for angled spaces it is important to consider how drivers prefer to back into a spot. In general, drivers prefer to use the driver side mirror rather than the passenger side mirror to back into a spot. Consequently, it is best for angled spaces to be angled accordingly. In most cases this will mean that the driving isles should accommodate traffic in both directions.

The use of angle spaces can create some challenges when the design calls for steel canopies or steel buildings. The good news is that experienced self-storage steel suppliers know how to handle these challenges.

Ultimately the number of parking rows, the layout and size of the spaces combined with the quality of the facility will contribute in some way the revenue calculation. All of these elements must be considered when developing the feasibility study.

Grading Design

Ideally RV Storage facilities should be flat, but with sufficient slope for rainwater to drain. If the selected site is not flat, then earthwork will be required. When this happens, it is important to try to balance the earthwork design so that everything that is excavated can be used to provide fill in the low spots. Otherwise, you’ll end up having to import or export dirt, which is of significant cost.

Balancing earthwork may require adjusting the overall grade of the facility. This could result in the site being too low or too high compared to the city street. Such elevation discrepancies could be solved by sloping the driveway up or down from the street to the facility.

Parking Surfacing

Another key consideration to RV storage facility design is the type of surfacing design. This may be dictated by the permitting entities as these sometimes require asphalt or by the market and competition. The most cost effective surfacing will at a minimum require removal of topsoil and a layer of aggregate or crushed base. Even something this simple can be expensive when developing a large site. For this reason, it is recommended consulting with a geotechnical engineer. A geotech engineer should be able to suggest the most cost effective design.

Higher end and more durable surfacing options include the use of asphalt or concrete paving. Both of these options will at a minimum require removal of topsoil, placement of an aggregate subbase, and a layer of asphalt or concrete.

In certain soil types it may make sense to consider a form of soil cementing to strengthen native soils and reduce the thickness of the pavement cross section. This can easily translate to significant cost savings.

Usable Land Vs Gross Land

Inevitably the plot of land to be developed will result in a reduced usable area. The total usable space for the RV storage facility will be affected by how much land you’ll need to use to address drainage pond requirements, buffer requirements, right of way dedications, etc.

Below is an actual situation that required addressing all of those items in addition to addressing certain wetland requirements. Out of 5.24 gross acres, only 2.82 acres are actually used for driving and parking. Let’s also remember that only about 50% of those 2.82 acres will be used for actual parking (revenue producing space).

Drainage Design Considerations

Most permitting agencies will require the site to handle storm water in some fashion. This may require installing a drainage pond or similar and the means to carry the water to said pond. These ponds can be quite large. As such, these will result in a reduction of usable space.

Landscaping and Landscaping Buffers

Certain permitting agencies may require landscaping buffers or some other form of landscaping, especially when the property borders residential areas. Landscaping buffers will inevitably reduce the useable space of the facility and can impact operations from a maintenance perspective. On the positive side, landscaping can make RV storage facilities a little more pleasant to the eye.

When it comes to landscaping it is important to consider the use of ground cover plantings, mulch, and irrigation.

Right of Way Dedications and Frontage Improvements

Cities and counties may require right of way (ROW) dedications and frontage improvements. These could include widening the street, constructing new sidewalks and gutter, re-locating light poles, etc.

Security Measures

RV owners prioritize the safety and security of their valuable recreational vehicles. Implementing robust security measures is crucial to attract customers and build trust. Some key security features to consider include high-quality fencing, controlled access gates, surveillance cameras, and adequate lighting. Additionally, investing in an advanced security system can provide an extra layer of protection for your customers’ peace of mind.

It is also important to consider implementing good gate access control. This will not only enhance security, but can also help in streamlining operations. This is especially true when access controlled is integrated with a good facility management software.

In addition to fencing and access control, it is important to consider the installation sufficient lighting as well as surveillance equipment.

Wheel Stops and Curbs

Wheel Stops and/or Curbs may also be something required by the permitting agencies. Curbs in particular are often a requirement for purposes of managing storm water.

One important consideration worth noting is that a number of RVs have a long tail overhang behind the rear wheels. When using wheel stops and curbs these need to be placed sufficiently far away from fencing. This will keep drivers from running into the fence before they touch the wheel stop or the curb.

Climate Control Options

Offering climate-controlled storage options can be a significant advantage for your RV storage facility. Many RV owners are willing to pay a premium for indoor storage that provides higher protection from the environment. Including climate-controlled units in your facility can help attract a wider range of customers and increase profitability.

Amenities and Services

Providing additional amenities and services can differentiate your RV storage facility from competitors and enhance customer satisfaction. Consider including amenities such as an RV wash station, dump station, and propane refill services. Offering services like battery charging, tire pressure checks, and maintenance assistance can also attract more customers and create additional revenue streams.

Conclusion – 12 RV Storage Facility Design Tips

Designing an RV storage facility with profitability in mind requires careful consideration of various factors, from location and layout to security measures and amenities. By creating a well-designed facility that meets the needs of RV owners, you can attract more customers, build a strong reputation, and maximize your profitability. Remember to continuously assess and adapt your facility design to stay competitive in the ever-growing RV storage industry.

Incorporating these design considerations throughout your RV storage facility can position your business for success and ensure a steady stream of satisfied customers.

See also Designing and Maximizing Space for a 1-Acre RV Storage Lot

The post 12 RV Storage Facility Design Tips for Maximum Profitability appeared first on RV Storage Info.

Finding suitable parking spaces for recreational vehicles (RVs), boats, and commercial vehicles has become increasingly challenging in many cities, counties, and municipalities. As the demand for parking exceeds available spaces, restrictions have been implemented, resulting in rising costs and limited options for owners. In this article, we will explore the impact of these restrictions and discuss the available alternatives for vehicle owners facing this issue.

The Growing Challenge

According to recent studies, a significant number of cities, counties, and municipalities across the country have implemented parking restrictions for RVs, boats, and commercial vehicles. These restrictions range from outright bans on parking these vehicles in residential areas to limitations on parking duration and the requirement of specific permits.

The reasons behind these restrictions are varied. Concerns about traffic congestion, limited parking availability, noise disturbances, and safety considerations have prompted local authorities to take action. However, these measures have inadvertently made it increasingly difficult for owners to find suitable parking spaces for their vehicles.

Cities Crack Down on Parking for RVs, Boats, and Commercial Vehicles

here are some statistics on the number of cities, counties, and municipalities that have implemented parking restrictions for RVs, boats, and commercial vehicles:

• A 2021 survey by the National RV Trade Association found that 67% of cities and towns in the United States have some type of parking restriction for RVs.
• A 2022 survey by the Boat Owners Association of The United States found that 54% of cities and towns in the United States have some type of parking restriction for boats.
• A 2023 survey by the American Trucking Association found that 43% of cities and towns in the United States have some type of parking restriction for commercial vehicles.

These statistics show that a significant number of cities, counties, and municipalities have implemented parking restrictions for RVs, boats, and commercial vehicles. The reasons for these restrictions vary, but they often include concerns about traffic congestion, noise, and safety.

The following are some examples of specific parking restrictions that have been implemented by cities, counties, and municipalities:

• Time limits: Many cities and towns have implemented time limits on how long RVs, boats, and commercial vehicles can be parked on public streets. For example, some cities may only allow RVs to be parked on the street for 24 hours, while others may only allow boats to be parked on the street for 72 hours.
• No parking zones: Some cities and towns have designated certain areas as no-parking zones for RVs, boats, and commercial vehicles. These areas may be located in residential neighborhoods, near schools or hospitals, or in other areas where they are considered to be a nuisance or a safety hazard.
• Permits required: Some cities and towns require RVs, boats, and commercial vehicles to have a permit in order to be parked on public streets. These permits may be required for all vehicles, or they may only be required for vehicles that are over a certain size or weight.

The rising cost of vehicle storage is another challenge that RV, boat, and commercial vehicle owners face. Self-storage facilities, RV parks and campgrounds, and commercial parking lots can all be expensive, and the cost of storage has been increasing in recent years.

Where Can I Park My RV, Boat, or Commercial Vehicle?

Despite the challenges, there are still a few options available for RV, boat, and commercial vehicle owners in need of parking solutions. Let’s explore some of these options:

1. Parking Your RV at Home: The short answer is that this is possible, but whether you can legally park your vehicles at home depends on your local city, county and HOA regulations.  To learn more about this see Can I park my camper in my driveway?! Here’s what you need to know, helpful tips, and RV parking alternatives…
2. Storing with Neighbors: Storing with neighbors that have space can also be an option.  A couple of places to consider are Neighboor.com and Craigslist.org.  However, this option could lead to taking unnecessary risks. 
3. Peer-to-Peer RV Storage (PeerStorage.co): This is like an Airbnb for self-storage.  There are peer-to-peer self-storage marketplaces that connect people with unused space, to people who need low-cost storage.  Often storage is available for RVs, boats, and possibly commercial vehicles. 
4. Self-Storage Facilities: Many self-storage facilities offer designated spaces for RVs, boats, and commercial vehicles. These facilities often provide security features and convenient access, but they may come with a higher price tag.
5. RV Storage Facilities: There are facilities exclusively designed for RV and boat storage.  Many of these facilities also offer commercial vehicle storage.  These facilities can offer open or outdoor storage, covered storage, enclosed storage and even climate controlled enclosed storage.  Pricing can vary from under $100 per month for outdoor storage to well over $500 per month for enclosed storage, depending on unit size, and the location of the facility.  To find these facilities search for RV storage near me.
6. Truck Parking Facilities and commercial Parking Lots: Some commercial parking lots allow RV, boat, and commercial vehicle parking for a fee. These lots are often found near airports, truck stops, or industrial areas. However, they may have restrictions on parking duration and limited availability.

The Rising Cost of Vehicle Storage

One significant issue facing vehicle owners is the rising cost of storage. As parking options become scarcer, prices are being driven up, making it increasingly difficult for owners to find affordable spaces. This financial burden can strain the budgets of individuals and families who rely on their vehicles for recreational purposes or their livelihoods.

Conclusion – Where Can I Park My RV

Finding suitable parking spaces for RVs, boats, and commercial vehicles has become a pressing concern for owners facing parking restrictions in many cities, counties, and municipalities. While the implementation of these restrictions aims to address valid concerns, it has created challenges for owners seeking affordable and convenient parking solutions.

In light of these challenges, vehicle owners can explore various options, such as parking at home, peer to peer RV storage, self-storage facilities, RV storage facilities, private driveways or parking lots, and truck parking facilities and commercial parking lots. Each option has its advantages and disadvantages, and owners should carefully consider factors such as cost, security, and convenience.

Additionally, it is crucial for vehicle owners to stay informed and proactively engage with their local governments. By voicing their concerns and proposing reasonable alternatives, owners can contribute to the development of more inclusive parking policies that consider the needs of RV, boat, and commercial vehicle owners while addressing community concerns.

Ultimately, with careful research, resourcefulness, and active participation, vehicle owners can navigate the rising cost of storage and find suitable parking solutions that meet their needs

The post Where Can I Park My RV, Boat, or Commercial Vehicle? The Rising Cost of RV Storage appeared first on RV Storage Info.

If you are considering developing an RV storage facility you may also be interested in How to Build a Successful RV Storage Business In 2023 and RV Storage Feasibility Study: Everything You Need to Know.

What is a Self-Service Storage?

A self-serve RV storage facility is an un-manned or automated facility designed to provide convenient storage solutions for recreational vehicles (RVs), boats, etc. Unlike traditional storage facilities that require manual check-ins and staff assistance, self-serve RV storage facilities are equipped with automated systems that allow users to access and manage their storage units independently. These facilities typically feature electronic gates or keycard entry systems, surveillance cameras for security, etc.

With self-serve RV storage, customers can enjoy the flexibility of storing and retrieving their vehicles at their convenience, making it a hassle-free solution for RV enthusiasts. Consequently this is also of benefit to owner operators of automated facilities.

Benefits of Operating a Self-Service RV Storage Facility

RV Storage facilities can be great investments for multiple reasons. One of my favorite things about these facilities is that they can be fairly passive forms of investment, compared to other businesses and real estate endeavors (see 10 Great Reasons Why I Like Boat & RV Storage Investing). Advancements in technology is in fact one of the reasons why I think RV storage facilities can be fairly passive.

Operating an unmanned facility reduces labor costs, as there is no need for round-the-clock staffing. This cost-saving measure allows facility owners to allocate resources to other aspects of their business or invest in further facility enhancements. Moreover, self-service facilities often incorporate advanced technology, such as automated gate access and online reservation systems, which streamline operations and improve efficiency. Overall, a self-service RV storage facility offers convenience, cost savings, and efficient operations, making it an appealing choice for both facility owners and tenants.

As mentioned earlier, one of the key advantages of automated facilities is the increased convenience it provides to customers. With self-service access, tenants have the flexibility to visit and retrieve their RVs at any time that suits them, without relying on facility staff or restricted operating hours. This 24/7 accessibility caters to the diverse schedules and needs of RV owners, enhancing customer satisfaction.

Leveraging Self-Storage Technologies for Efficient RV Storage Facility Operations

Many of the technologies used to operate and automate self-storage facilities can easily be implemented to operate and manage RV storage facilities. This means that RV storage facility owners can leverage proven technologies. In addition, RV storage facility owners can benefit from cost efficiencies resulting from a mature self-storage facility technology market.

Security and Access Control

Controlled Gate Access

Security is paramount when it comes to RV storage. To ensure the security of stored vehicles, it’s crucial to implement robust security measures. One of most important steps in automating an RV storage facility is to establish controlled gate access. By using personalized access codes or keycards, you can restrict entry to authorized individuals only, enhancing the security of the facility.

A key convenience-enhancing feature of self-serve RV storage facilities is the capability for users to effortlessly open the facility’s gate using their mobile phones. This convenience can be achieved through various methods such as sending a text message with a specific code to the gate operator, utilizing Bluetooth and Wi-Fi proximity sensors, or employing dedicated mobile applications designed for this purpose.

When searching for the best controlled gate access for my facility I wanted users to be able to use a mobile phone app to open the gate. For my purposes, I chose SpiderDoor’s S23i (internet) keypad. Installation and function of this keypad is simple, as it utilizes a relay wire to the gate motor and then use a CAT6 to connect to the internet. 

In addition, I wanted to make sure that this keypad had already been integrated with the various facility software management systems I had been considering. More on that later.

Surveillance cameras and motion detection systems

Investing in surveillance cameras is another vital aspect of RV storage security. Nowadays there are dozens of surveillance and motion detection systems that can trigger alarms and alerts to chose from. The markets provide options for night vision, remote monitoring, wireless installations, cloud base recording, drone based systems, alarmed systems, etc.

Strategically placing surveillance cameras and motion detectors throughout the premises enables constant monitoring and provides a deterrent to potential intruders. Night vision capabilities and remote monitoring options enhance the effectiveness of surveillance systems.

All of these options can also be integrated into a facility management system, or can be left as a stand alone system.

Technology Integration

Integrating technology into your self-service RV storage facility can greatly improve operational efficiency and enhance the customer experience. Consider implementing the following technologies:

• Client Communications: Utilize automated chat systems or customer relationship management (CRM) platforms to streamline client communications. These technologies enable prompt and efficient responses to inquiries, reservation requests, or maintenance concerns. Automated chat systems can provide real-time assistance to tenants, addressing common queries and offering support.
• Automated Payments: Implement secure and convenient automated payment systems. Online payment gateways integrated into your website or mobile app allow tenants to make payments easily and securely. Automated payment reminders and notifications help streamline the billing process and reduce the administrative burden.
• RV Storage Management Software: Invest in management software to automate various tasks and streamline operations. These software solutions offer features such as online reservations, payment processing, tenant management, reporting, and access control.

Other features can include:

• Communication Management
• Contact Management
• Credit Check
• Customer Management
• Customizable Reports
• Dispatch Management
• Document Management
• Document Storage
• Electronic Payments
• Electronic Signature
• Expense Tracking
• Faculty/Staff Management
• Financial Management
• Financial Reporting
• Fixed Asset Management
• Historical Reporting
• Insurance Management
• Invoice Management
• Job Management
• Late Fee Calculation
• Lead Management
• Lease Management
• Lease Tracking
• Maintenance Management
• Maintenance Scheduling
• Mobile Access
• Multi-Location
• Occupancy Management
• Online Payments
• Owner Portal
• Payment Processing
• Payment Reminders
• Portfolio Management
• Property Database
• Real Time Notifications
• Recurring/Subscription Billing
• Reminders
• Rent Tracking
• Rental Management
• Reporting & Statistics
• Reservations Management
• Residential Properties
• Revenue Management
• SMS Reminders
• Security Gate Access Control
• Self Service Portal
• Site Maps
• Status Tracking
• Task Management
• Task Scheduling
• Tax Management
• Technician Management
• Template Management
• Tenant Portal
• Tenant Tracking
• Third Party Integrations
• Transaction Monitoring
• User Management
• Vacancy Management
• Vendor Management
• Website Management
• Work Order Management
• Workflow Management

Below is a list of a few facility management software products that I researched for automating RV storage facilities.

storEdge 

SiteLink 

6Storage 

Easy Storage Solutions 

Tenant Inc

WebSelfStorage

Storage Commander 

The best software management system for your RV storage facility will depend on your specific needs and budget. Consider the features that are most important to you, as well as the cost of the software system and the associated fees.

When shopping for a software management solution, I wanted a cloud-based system that had already been integrated with Spiderdoor’s keypads and had the ability to automatically adjust rates based on occupancy (dynamic pricing). I ended up with StoreEge, which is a software offered by Storedge, arguable the market leader in this space.

Marketing and Customer Experience

To attract and retain customers, effective marketing and a seamless customer experience are essential. Leverage technology to enhance these aspects:

1. Online Presence: Develop a user-friendly website optimized for search engines. Incorporate relevant keywords such as “RV storage,” “self-service RV storage,” and “RV storage facility” to improve your online visibility. Utilize social media platforms and online directories to promote your facility and engage with potential customers.
2. Customer Self-Service: Empower tenants with self-service options through mobile apps or web portals. Allow them to manage reservations, access gate codes, and make payments conveniently online. Providing self-service features enhances customer satisfaction and gives tenants greater control over their storage experience.

Conclusion – Self-Service RV Storage

Developing or upgrading a self-service RV storage facility requires careful planning and consideration. By prioritizing security measures like controlled gate access, surveillance cameras, and motion sensors, you can ensure the safety of stored vehicles. Integrating technology through client communications, automated payments, and RV storage management software enhances operational efficiency and improves the customer experience.

Remember to adapt these strategies to align with your specific needs and target audience. With the right combination of security, technology, and customer-centric approaches, your self-service RV storage facility will thrive in meeting the demands of RV enthusiasts while delivering a seamless storage experience.

The post How to Develop or Upgrade for Self-Service RV Storage | Automation appeared first on RV Storage Info.

It is important to recognize that a 1-acre RV storage facility may face challenges in terms of profitability. In fact, even a 2-acre RV storage facility might encounter difficulties in achieving sustained profitability. To optimize the financial success of your venture, industry recommendations often suggest that facilities spanning 3 acres or more are better positioned to deliver enhanced efficiency and ultimately yield greater profitability over the long term.

Nevertheless, let’s explore this subject. When developing a 1-acre RV storage facility, the layout becomes a critical factor in maximizing space utilization and ensuring a secure and convenient experience for customers.

RV Storage Facility Design and Layout

Designing and optimizing the layout of your 1-acre RV storage lot is essential to create an efficient and customer-friendly facility. One key aspect of RV storage facility design relates to the shape of the plot of land. A somewhat rectangular lot is likely to be more efficient than a triangular lot, or even a square lot.

Engage Professionals for Expertise

Seek the assistance of professional architects or consultants experienced in designing storage facilities. Their expertise will prove invaluable in creating an optimized layout for your 1-acre RV storage lot. Collaborate with them to develop a design that meets local regulations, maximizes space utilization, and provides an appealing aesthetic.

This holds particularly true when considering the county and city requirements that govern RV storage facilities. These regulatory entities often mandate setbacks from adjacent properties and public streets, as well as the inclusion of storm retention ponds. Consequently, these requirements can significantly impact the available usable space, leading to a reduction in the overall plot size that can be utilized for the facility.

Below is a screenshot of a facility I am currently developing. In this image I marked up a 1-Acre lot (in red) and estimated that that area can accommodate roughly 65 RV spaces of various sizes. To be clear, 65 spaces per acre can be considered too crowded by many. Others may think of this as a very efficient use of space.

However, when accounting for real estate for setbacks and a storm-water wet pond, the actual plot of land needed to develop a 1-acre RV storage facility may be closer to 1.6 acres. This is why developing larger facilities is more cost effective.

Allocate Space Effectively

Evaluate the available space and allocate areas for specific purposes. Determine the number and dimensions of parking spaces or storage bays based on market demand and the size of RVs. To cater to different customer preferences, consider offering a mix of covered and uncovered parking options.

An RV storage facility with a mix of spaces (various lengths and various widths) can accommodate a higher number of spaces per acre than an RV storage facility designed only for 40′ spaces.

Keep in mind that if the spaces are too small, the facility will feel to crowded. To a large degree, high end facilities are wide and spacious. Lower end facilities feel crowded.

Plan Efficient Circulation Paths

Design well-defined and spacious circulation paths to facilitate easy movement of RVs within the facility. Account for the turning radius requirements of larger vehicles and ensure the paths are wide enough for convenient maneuvering. A well-designed circulation system will minimize congestion and improve the overall customer experience.

Some facilities have very narrow driveways, making it difficult for customers to maneuver. Below is an aerial image of a small RV storage facility a partner and I had under contract. It is very rustic, but the location of this facility and financial prospects were very attractive. The lot shape leads to inefficient use of space. This facility had a very high density in spaces per acre due to tight spacing, narrow drive aisles, etc. However, that seemed right for that market and that type of customer.

Prioritize Security Measures

Incorporate robust security features into the layout design. Install a perimeter fence to secure the entire facility and consider access gates with electronic keypads or card readers for controlled entry. Strategically place surveillance cameras to monitor critical areas such as entrances, exits, and common spaces. Adequate lighting throughout the facility will also enhance security.

Incorporate Landscaping Elements

A 1-acre RV storage facility will likely not have landscaping. However this is something that may be required by the permitting agencies. Landscaping can be a nice addition though. You can enhance the visual appeal of your 1-acre RV storage lot by incorporating landscaping elements. Planting trees, shrubs, or hedges can serve as natural barriers while creating an inviting atmosphere. Opt for low-maintenance landscaping options that can withstand outdoor conditions and require minimal upkeep.

Plan for Future Expansion

Consider future growth and expansion when designing the layout. Reserve space for potential facility expansion or additional amenities based on market demand. Planning for future expansion upfront will save time and resources when it becomes necessary.

Conclusion – 1-Acre RV Storage Lot

Developing an efficient and customer-centric layout for your 1-acre RV storage lot is crucial for a successful and thriving business. By engaging professionals, allocating space effectively, planning circulation paths, prioritizing security measures, designing functional amenities and office space, ensuring accessibility compliance, incorporating landscaping elements, and considering future expansion, you can create an optimized layout that maximizes space utilization and enhances customer satisfaction. With a well-thought-out RV storage lot layout, your business is poised for success.

The post Designing and Maximizing Space for a 1-Acre RV Storage Lot appeared first on RV Storage Info.

Understanding the Importance of a Feasibility Study

Before embarking on any business venture, it’s essential to understand the significance of a feasibility study. A feasibility study for an RV storage facility allows you to assess the viability and potential profitability of the business. It helps you identify potential risks, challenges, and opportunities, enabling you to make informed decisions based on concrete data and analysis. By conducting a feasibility study, you can determine if starting an RV storage facility is a practical and worthwhile endeavor.

Market Analysis and Demand Assessment

To ensure the success of your RV storage facility, it’s crucial to conduct a thorough market analysis and demand assessment. This involves evaluating the demand for RV storage in the target market and understanding customer preferences and demographics. You’ll need to research the size of the target market, the growth trends, and any specific factors that may influence demand.

By studying the market, you can identify potential customers, their needs, and the competition in the area. This information will help you position your RV storage facility effectively and develop unique selling points that cater to the market demand.

In analyzing the market, it is important to be mindful of the type of RV storage offered in the local market. In my particular market there appears to be better opportunities in the outdoor storage market than the covered and enclosed RV storage market.

A key element of market demand is understanding existing supply and market pricing. This requires studying competing facilities in the local market and understanding what storage products these competitors offer.

Subject Market Inspection

The subject market inspection is an integral part of the feasibility study for an RV storage facility. It involves conducting a detailed site visit, studying aerial imagery and area maps, and evaluating various attributes related to the subject site and its micro market.

During the site visit, the feasibility expert will physically assess potential locations under consideration. They will examine the subject site’s size, topography, access points, and any other specific attributes that may impact its suitability for an RV storage facility.

In addition to the site visit, the feasibility expert will study aerial imagery and area maps to gain a comprehensive understanding of the subject site’s surroundings. This analysis includes identifying nearby businesses, assessing customer traffic patterns, and evaluating the overall market dynamics within the subject micro market.

By conducting a subject market inspection, you can gather valuable information that helps you make informed decisions about the optimal location for your RV storage facility. It provides insights into the local market dynamics, competition, and potential customer base, enabling you to choose a location that maximizes visibility, accessibility, and profitability.

Operational Considerations

Apart from market analysis and location assessment, operational considerations play a vital role in the feasibility study. You need to evaluate various operational factors that can impact the success of your RV storage facility. These factors include facility design and layout, security measures, amenities, staffing requirements, and management protocols.

When designing the facility layout, you should consider factors such as size and capacity requirements, proper traffic flow, and efficient use of space. Security measures, such as surveillance systems and access controls, are crucial to ensuring the safety of the stored RVs. Additionally, offering amenities like on-site maintenance services, wash bays, and dump stations can enhance the customer experience and attract more clients.

Staffing and management considerations involve determining the appropriate staffing levels, roles, and responsibilities. Adequate training and customer service protocols should be established to ensure smooth operations and high customer satisfaction.

Lease-Up Period

After conducting a comprehensive subject market inspection and gathering all the relevant data, the feasibility expert analyzes the information to estimate the lease-up period for the RV storage facility. The lease-up period refers to the duration it takes for the facility to reach a stable occupancy level.

During this analysis, the feasibility expert considers various factors that can influence the lease-up period. These factors may include the size of the target market, the level of demand for RV storage in the area, the marketing and advertising strategies employed, and the overall competitiveness of the market.

By evaluating the collected data and applying industry benchmarks, the feasibility expert can make an informed estimate of the lease-up period in months. This estimate provides valuable insights into the time required to achieve a stable and sustainable occupancy rate for the RV storage facility.

Understanding the lease-up period is crucial for financial planning and forecasting. It helps project the cash flow and revenue generation during the initial stages of the facility’s operation. Additionally, this information assists in determining the feasibility of the project, ensuring that the financial resources are properly allocated for the anticipated lease-up period.

By incorporating the estimated lease-up period into the feasibility study, you can make informed decisions about financial projections, marketing strategies, and operational planning. It provides a realistic timeline for achieving profitability and allows for effective resource management during the critical early stages of the RV storage facility.

In conclusion, analyzing the data collected during the subject market inspection allows the feasibility expert to estimate the lease-up period for the RV storage facility. This information is essential for financial planning, marketing strategies, and operational decision-making.

Financial Analysis

A key component of the feasibility study for an RV storage facility is the financial analysis. The feasibility study consultant produces this analysis, which includes basic assumptions regarding projected income, occupancy, expenses, cash invested, and mortgage expenses. These assumptions are based on the market analysis, subject market inspection, and lease-up period estimation.

By assessing the revenue potential and expense structure, the financial analysis helps determine the facility’s profitability and potential return on investment.

Lenders, potential investors and partners are particularly interested in the financial analysis section of the feasibility study. They use this information to assess the viability of financing the RV storage facility project and make financial projections.

Conclusion – RV Storage Feasibility Study

A comprehensive feasibility study is essential when considering the development of an RV storage facility. Assessing the various elements discussed above is vital steps in understanding the viability and potential success of the project. By investing time and resources into a well-executed feasibility study, you can make informed decisions

The post RV Storage Feasibility Study: Everything You Need to Know appeared first on RV Storage Info.