- Renting Out Land
Similar to mobile home park investing, RV storage investing is about making money from the land, a very passive form of real estate investing.
- Simple Business Model
The business model is straightforward – rent out storage spaces without the complexities of residential property management.
- Economies of Scale
Larger facilities benefit from lower per-unit costs and reduced vacancy risks compared to smaller real estate investments.
- Strong Demand
Registrations of RVs and motorboats are at all-time highs, driven by various demographic and social factors, including the COVID-19 pandemic.
- Higher-End Tenants
RV and boat owners, often investing significant amounts in their vehicles, are likely to be reliable and neat tenants, who don’t leave boxes of worthless items behind for a storage owner to dispose.
- Recession-Proof Nature
Similar to self-storage, RV storage facilities tend to perform well during economic downturns.
- Automation
Modern automation technologies allow for remote management and lower operational costs.
- Future Potential for Higher and Better Use
RV storage facilities can be an interim use of land, holding it until it becomes more valuable for other developments.
- Low Competition
It’s a niche market (there’s riches in niches) with less investor competition compared to other real estate sectors.
- Great Financing Opportunities
Lenders view these facilities favorably, often offering attractive financing options.
Performing a Market Analysis
Before diving into this investment, it’s wise to conduct a detailed market analysis. This should include assessing local demand, understanding zoning laws, evaluating competition, and forecasting future market trends. This due diligence will help in making an informed decision and setting up for success in the boat and RV storage market.
Strategic Planning and Development
Location Selection
Choosing the right location is paramount. Ideal locations are near tourist attractions, water bodies, or major highways. The local demographic should also be considered; areas with a higher concentration of RV and boat owners are more lucrative.
Design and Layout Considerations
Designing a storage facility requires careful planning. Considerations include ease of access, security measures, and the mix of storage options (open space, covered, enclosed).
The layout should facilitate easy maneuvering of large vehicles and provide adequate security and protection.
Final Thoughts
The boat and RV storage market is dynamic and evolving. Staying informed about industry trends, leveraging technology, and focusing on customer needs will help investors stay ahead in this competitive landscape.
With its numerous advantages and potential for high returns, boat and RV storage investing is indeed a promising venture in today’s real estate market.
Ready to invest passively in RV and boat storage? Join the Passive Investor’s Circle today!
