Sales of recreational vehicles (RVs) have taken off in recent years, and that’s created more demand for secure and convenient places to park them when not in use. Many neighborhoods don’t allow RV parking, and it is often illegal to park them on a city street. RV storage facilities address these concerns, plus they provide the benefit of a sheltered indoor space that protects vehicles from severe weather. RV storage facilities often command higher rates than traditional self-storage units alone, as the supply of RV parking space is often limited, especially in urban areas as well as destinations for outdoor recreation. Thinking about building your own RV storage facility? Read on for everything you need to know before you start.
Starting an RV storage business
As the RV craze continues, some investors may be considering whether to build recreational vehicle storage buildings, also known as RV storage facilities. Unlike traditional self-storage facilities, storage facilities for RVs typically require more storage space and take up more land.
But RV storage facilities also might be more lucrative than traditional self-storage facilities. In May 2021, the average monthly rent for RV-sized units was $134.35, according to SpareFoot data. Meanwhile, the average monthly rent for all types of storage was less than $90.
Here are some of the things you should keep in mind if you’re considering starting an RV storage business.
Costs and considerations for an RV storage facility
Mako Steel, which designs, supplies and installs self-storage and RV storage buildings, says you should plan on needing at least 300,000 square feet of space to accommodate RV storage, parking and other buildings. This compares with roughly 46,000 net rentable square feet for a typical self-storage facility.
In addition, an RV storage facility usually demands more land than a typical self-storage facility does. While a typical storage facility covers about 2.5 to 5 acres, an RV storage facility can easily consume 7 to 10 acres. This could mean higher land costs when building storage facilities for RVs.
The space and land factors should be key parts of your equation when you’re figuring out whether an RV storage garage could be a lucrative venture. The cost to develop an RV storage building runs into the millions of dollars.
Trachte Building Systems, which provides products for self-storage owners and developers, suggests looking at whether you might opt to add RV units to a traditional self-storage property. However, the company says, premium locations may be too pricey for large RV units or too small to allow enough large RV units.
Zero-in on the location
Not just any piece of land will do the trick when it comes to building RV storage facilities
Mako Steel advises that open space near campgrounds, lakes and rivers are ideal spots for RV storage facilities. That, however, should not be the only thing that determines the location.
You also must study the demographics of the area surrounding a potential RV storage site. Do a lot of current or potential RV owners live close to the property? According to the RV Industry Association, the average RV owner is a married 48-year-old homeowner with an annual household income of $62,000. Given that profile, a site close to a cluster of apartment complexes might not work.
“Location really does make or break your storage business. The construction costs won’t pay off if you don’t have enough regular long-term renters,” Mako Steel advises.
What zoning is needed for RV storage?
When considering what zoning is needed for RV storage, you’ll want to research the regulations for the site you’re looking at. If the land isn’t already zoned for storage, you may face several costly, time-consuming hurdles when you try to rezone the property.
RV storage facilities are usually permitted in commercial or light industrial zones, but specific RV storage zoning requirements can vary depending on your city or county. In many areas, this use falls under a conditional-use or special-use permit, since “RV storage” isn’t always named directly in zoning codes. If your property is zoned for residential or agricultural use, you’ll likely need a rezoning or variance to meet local zoning for RV storage facilities. Municipal codes may also outline additional RV storage property zoning laws around setbacks, fencing, landscaping, drainage, and screening to manage visibility and stormwater runoff.
Before you purchase land or start construction, check with your local planning and zoning department to confirm which classifications and permits are required for your RV storage project. Learn how to boost the value of your RV storage business.
Concentrate on RV storage size and facility configuration
If you’re building an RV storage facility, you must settle on the layout of the facility. First and foremost, you need to decide whether you are building indoor RV storage or outdoor RV storage. More than likely you’ll want a mix of both.
In many cases, tenants will be hunting for enclosed space to store their RVs. Why? Because enclosed spaces provide more security and weather protection than open spaces or canopy-covered spaces do, Mako Steel points out. That being said, you might want to include open spaces or canopy-covered spaces in the mix when planning your RV storage lot layout.
The Parham Group, which specializes in self-storage management, construction and consulting, says the minimum RV storage size width is 12 feet, with a maximum depth of 45 to 50 feet. A common unit might be 14 feet wide and 40 feet deep. According to the Parham Group, a 14×40 unit would take up 560 square feet of land.
In addition, you’ll want to closely examine how tenants will enter and exit the property. You might wind up having to collaborate with local officials to ensure there’s enough room for RVs and trailers to navigate the entrances and exits. Also, as Mako Steel notes, you’ll need to see whether adjacent streets can easily handle RV traffic.
Security considerations when building RV storage lots
Typically, an RV costs anywhere from $35,000 to $300,000. Given those price tags, RV owners want to safeguard their investments. This means you must take security measures into account when building RV storage lots and facilities.
The Parham Group says you’ll at least want to install perimeter fencing, which can be chain link fencing, razor wire fencing or even solid block walls. You also should consider 24-hour secured access, complete with camera surveillance and key-coded entry gates.
Decide what amenities to offer
Aside from security, potential tenants will be interested in amenities. For instance, RV owners likely will want access to free water and to metered or flat-fee electricity, according to the Parham Group. Consider what amenities your customers will want when developing your RV storage business model.
Operating an RV storage business
Once your recreational vehicle storage building is up and running, Storable technology can help you manage your business more efficiently. With marketing tools, websites, management software, insurance, and payment processing, Storable offers a whole suite of powerful products that will give your RV storage facility a competitive edge in a growing segment of the industry.
