RV Storage Business?

Question

So, recently I've been interested in possibly buying a plot of land near Colorado Springs, CO and developing it into an RV Storage Facility. I have been interested in self storage for a bit, but it seems like it's too saturated and taken over by large companies.

It seems like the development part of it wouldn't be too hard. Just throw down some gravel and put up a fence right?

Has anyone done this before? Any tips?

Thanks!

Kris Bennett · Answer

Great idea @Vincent Pirrone! Storage is generally oversaturated in major markets, but there's always a good location waiting to be found, existing or development. Your idea is different enough that it will not compete too heavily with the typical storage facility, but you still need to consider what competing facilities offer RV storage already, how much they charge, and what types of amenities they offer.

As far as land is concerned, make sure you get a Phase 1 environmental and an ALTA survey as part of your due diligence. A bank loan will require these reports anyway, and they may require a feasibility study by a 3rd party. If you're paying cash, I'd still get a Phase 1 and ALTA survey at the very least.

As for the development of RV storage, I can recommend you check out publications by MiniCo. They have several books on the topic and that might be helpful to you.j

Best of luck!

Robin Searle · Answer

Just thought I'd throw this out there in case you haven't looked at what people are paying but we just bought a camper and are storing it at Bill's storage on Volmer in the Springs. We pay $60 a month for a 30 foot space.  I talked to the owner of Darby's and they have owned that land since the early 70's.  I can't imagine how much they rake in every month from all of the RV's they have on their lot.  I think with the price of land here now it would be much harder to have a decent ROI.

Colin Smith · Answer

You can get a free meeting with Colorado Springs City Planning which you can apply for on their website. I recommend talking to them before purchasing to prevent any issues with land usage.

I also would recommend calling around to other lots to see what sort of vacancy they have, their rates, security, etc.

Henry Clark · Answer

@V, info from another topic reply I did.

1.  Site Selection, 2.  Considerations blog, 3.  Site layout,   This may be a little disjointed, I am combining 3 different blogs and discussions I have had.

1.  Site Selection:

Your near Detroit, so I will do this specific suggestion without boots on the ground.

a.  You have two choices for location.  Either close to the customers home (expensive ground/higher rent needed/lower availability of land) or close to their recreation area (less expensive ground/lower rent/more land options).  If you go towards the rec area, I would recommend a combination Storage and Rec parking area, separated on the same grounds.

b.  Your town would be great for both the lake area, but also near their homes even though they are away from the small lake region.  Your ground will be more expensive and you will need to charge more.

c.  Looks like most people would exit the city and go Northwest towards the small lake regions.  I would look from both a zoning/cost/access standpoint in the following Box.  Brighton/Farmington/Rochester/Springfield.  Stay on the side towards Detroit in your selection.

d.  Using Detroit neighborhoods as the focal point.  I will recommend away from Detroit.  Pick a road crossway, that either has an overpass or crosslight if heavy traffic.  If further out, pick a crossway, that they can go either way, versus just to the right.  Pick a piece of ground you see before you get to the intersection coming from Detroit.  1/3 to 1/4 mile before, so they can see and pull in.

e.  I would recommend nothing less than 5 acres, preferably more.  Decide ahead of time the services you will provide.  This will determine water, sewerage, electric needs.   Make sure you figure out your Snow removal.  Or keep it closed/no access over the winter season.

Key is to pencil your numbers.  Parking/storage is not a rapid return proposition.  Recommend you also do Self storage buildings or Cargo containers; or do a Rec parking area.  There is a great demand for RV/Boat/Vehicle parking, but the numbers are slim.  Start small and make your Big mistakes early.

2.  CONSIDERATIONS FOR RV OR VEHICLE STORAGE

A. Pull through- The front, pull as far forward as possible, gives the person next to you an easier angle to turn into, from behind you. Align your front with the fronts of all other vehicles. Be courteous and leave enough room on the Driver side, so that RV can open their doors.

B. Back to back parking- our locations are set up at 60 degree parking. Also, they are setup for the driver to back in on their side, so they can use the lot next to them for alignment. This way you only have one blind side on the right side backing in. Otherwise you have two blind sides.

We have 20/30/40 foot parking at our location at 26763 Highway 34, Glenwood, IA. Each size has a different width due to how hard it is to park a longer unit at the very front angle of their turn in. 20’s- 10 wide; 30’s- 12 wide; 40’s- 15 wide. Although you could park an RV in any of these sizes, it is easier with a wider width to make the “front” turn. Or ask for an end parking spot, so you are doing a 90 degree parking, but have the whole drive way to back in with, without a turn.

C. Canopy- same issues as others, depending on if 60 degree or 90 degree parking.

D. Enclosed- Really a matter of width and depth. Keep in mind all measurements for storage are relative. For example: A 10 wide x 20 deep x 8 tall unit, with studs, roll up door and door jambs; is really 9 wide x 19 ft 6 inch deep x 7 ½ foot tall. Also if you have a 20 ft boat or Camper, its really 22/23/24 ft depending on Propeller, bumper or front hitch.

E. Surface- Rock or hard surface (concrete/asphalt); If on rock/asphalt put your tongue leg or stabilizer pads on wider pads to spread the weight out. These pads are needed on Asphalt since in hot weather they will sink into the asphalt.

F. Pest control- we put mouse bait out along the fence lines and under the units, mow excess weeds and grass. You should put both rodent and bug control in your unit. Dispose of all food sources, for long term storage. If you want to be really diligent with pest control, don’t park next to overhead lights. They attract bugs at night and then mice underneath. Put scented drier sheets in all compartments and rooms. Open all cabinets and doors.

G. Stabilizers- if doing long term storage put you stabilizers down. Most parking is in an open area and the units can rock and move with the wind. This will also help with taking pressure off your tires so they last longer.

H. Security- Put a lock on the hitch. Although you are in a secure location, RV’s and trailers are the easiest storage to break into or take without notice. Recommend you put in motion sensors or GPS tracking security. Check your vehicle at least twice a month. Most Security systems only maintain footage for 2 weeks due to camera memory capacity.

I. Propane Fuel Tanks- disconnect and store if leaving for long term storage.

J. Electronic Lifts- disconnect the battery if leaving for long term storage.

K. Insurance- most storage unit insurance policies do not cover vehicles. Keep your insurance, just have them adjust your automobile to fewer miles or just comprehensive coverage. Wind, Flood, tornado, Hail, or third party damage or theft can still occur. Traditional insurance coverage, RV’s normally stay a flat rate throughout the year, thus you will still need to maintain full coverage. Or, if you seek out a specific RV or rec vehicle insurance company, you can move in and out of winterization rates.

L. Pricing- use a 30 foot vehicle as an example:

-In the country about a $1 per foot on rock.

-With Paved access and parking spot, this might run $60 to $90

- Enclosed parking this will cost about $120 to $170 for a 30 foot.

- Enclosed parking for a 50 foot, might cost $225 to $350.

The price extremes are the cost of the concrete/asphalt road and the storage bay. Also the longer the unit the price goes up significantly because it takes more driveway width to park and the type of door changes in both size and type (remote operated). A 50 ft RV will require about a 70 foot wide driveway to back in.

We are only addressing the long term Parking portion of storage. Other items are specific to each vehicle such as water clean out, Tire/window shades, etc.

Quick non Parking list:

Wheel/tire covers; Vehicle cover.

Remove and store your tires.

Store with a full fuel tank to prevent condensation

Add fuel stabilizers

Place RV completely off the ground to prevent flat spots on your tires, if left for a long time.

Cover your HVAC, skylights, vents and windows to prevent exposure to sun and breakdown.

Boats leave your plug out, whether covered or not.

3. Surface, Canopy, Enclosed.Just talking Surface.Have run the numbers about 10 times on Enclosed, but I would have to charge $225 to $350 per month and don't have that market here. Have only seen one location on the interstate near Oklahoma City that had that market ($150,000 to $500,000 RV's) and they were full. They have a lot of $1mm homes and lakes nearby. You have to do Concierge services for that market. Battery charger, turn fridge on before trips, Dump station, Concierge parking service, Tire/Oil/etc check, Big drive ways, electric in each unit, etc.Canopy, I have seen in Texas. Cant say much, haven't researched it.I have been in two other models. Old welding shop with 40 foot roofs. Spots are "crammed in". They park and unpark for you.Another, is winter only. You go "in" the fall and everyone comes "out" the same time in the spring. They also have a lot of outside spaces. Both of these models were full.Attached (guess you can't upload Excel files) is an Inventory list of an exact 2 acre parking lot we have. Also the row configuration. See cut and past below.Might not apply if your on concrete, which would be great, but I'll throw these out anyway.Its on rock. Use 1 1/2 inch with "Fines". Cost about $20,000 for rock delivered.Put Geogrid underneath, so no potholes after 4 years. Otherwise, you need to put a base of 3 inch rock first, then the 1 1/2 with fines. Be careful if you blade snow.Payback is about 12 years.Not the best use of the land, but didn't need it at the time for storage.Put at 60 degree angle, otherwise you get a lot less spaces, since your driveways have to be wider. Example: If you do 90 degrees parking on a 50 foot space, you might need a 70 foot driveway. Also 60 degrees makes it easy for the driver. Also put the 60 degrees turn on the driver side window so they can see the turn.Put a Wire and posts down the middle of the shared back to back parking so vehicles stay on their side. Used other posts, stakes, number signs (reflective) to define each space.Mix. Went with even surface area for 20/30/40 foot spaces. Did not do any 50's for large RV's. Where we are at, most RV's are in the $10,000 to $70,000 range. Actually worked out pretty good. The 20's have a few vacancies.Price $20/$30/$40. This is in a 10,000 population community with about 4 no wake lakes to the East within 60 miles. Prices could be higher, but= No city restrictions on vehicles, which would increase your market. Plus we are in the country, where you can find a friend to park.Run light and security camera poles first.Definitely put a "License Plate" specific camera at a narrow point and other cameras and lights at that bottleneck. Our spot is fenced off from the Storage location, with one access point, no gate there. Recommend your NVR has a timeline with Red markers for motion on your cameras.Layout and capacity really depends on the lot shape. The same two acres, could probably get about 30% more if it was a rectangle versus a square, due to less turnarounds.Attachment:This is a relaxed layout, I did not try to cram the spaces in.

Rows and Road Configuration

A

Road

B

C

Road

D

E

Road

F

This layout is on a 2 acre square.

Roads are all the same width.

All rows are set at 45 degree angles

Unit

Description

Row:

G001

1x20x1

A

G002

1x20x1

A

G003

1x20x1

A

G004

1x20x1

A

G005

1x20x1

A

G006

1x20x1

A

G007

1x20x1

A

G008

1x20x1

A

G009

1x20x1

A

G010

1x20x1

A

G011

1x20x1

A

G012

1x20x1

A

G013

1x20x1

A

G014

1x20x1

A

G015

1x20x1

A

G016

1x20x1

B

G017

1x20x1

B

G018

1x20x1

B

G019

1x20x1

B

G020

1x20x1

B

G021

1x20x1

B

G022

1x20x1

B

G023

1x20x1

B

G024

1x20x1

B

G025

1x20x1

B

G026

1x20x1

B

G027

1x20x1

B

G028

1x20x1

B

G029

1x20x1

B

G030

1x20x1

B

G031

1x30x1

C

G032

1x30x1

C

G033

1x30x1

C

G034

1x30x1

C

G035

1x30x1

C

G036

1x30x1

C

G037

1x30x1

C

G038

1x30x1

C

G039

1x30x1

C

G040

1x30x1

C

G041

1x30x1

C

G042

1x30x1

C

G043

1x30x1

C

G044

1x30x1

C

G045

1x30x1

C

G047

1x40x1

D

G048

1x40x1

D

G049

1x40x1

D

G050

1x40x1

D

G051

1x40x1

D

G052

1x40x1

D

G053

1x40x1

D

G054

1x40x1

D

G055

1x40x1

D

G056

1x40x1

D

G057

1x40x1

D

G058

1x40x1

D

G059

1x40x1

D

G060

1x30x1

E

G061

1x30x1

E

G062

1x30x1

E

G063

1x30x1

E

G064

1x30x1

E

G065

1x30x1

E

G066

1x30x1

E

G067

1x30x1

E

G068

1x30x1

E

G069

1x30x1

E

G070

1x30x1

E

G071

1x30x1

E

G072

1x40x1

F

G073

1x40x1

F

G074

1x40x1

F

G075

1x40x1

F

G076

1x40x1

F

G077

1x40x1

F

G078

1x40x1

F

G079

1x40x1

F

G080

1x40x1

F

G081

1x40x1

F

G082

1x40x1

F

G083

1x40x1

F

G084

1x40x1

F

G085

1x40x1

F

G086

1x40x1

F

G087

1x40x1

F

G088

1x40x1

F

G089

1x40x1

F

Additional notes:

If I didn't do back to back would have about 30% less spots ( you have to add more driveways for the same number of units) and payback would be around 18 years versus 12. Wouldn't do it. Had my buddy who does RV rentals help me lay it out. I also wanted to do "Drive through" which we have at one of our other spots. Customers love it, but it doesn't pay. He said if you have an RV you should be used to backing into a campsite. He helped me with the 30 and 40 foot spacings. 8 foot wide vehicle with 2 1/2 feet on each side, for a total of 13 feet. This is fine for the 30, little tight on the 40's backing in. He said could be tighter, but I didn't want to push it.No problem filling enclosed parking for RV's. Problem is the numbers don't pay. Have a quote from last week for a 20 x 50 x 16 T. 14 x 14 door with operator ($4,400 for door and operator), plus walk thru door. $35,866 for one unit. That's just the unit. If you put a 50ft rv in it, you need a 60-70 foot driveway, if parking at 90 degrees. That's a lot of money for a driveway. Concrete footings, concrete floor, concrete driveway per code. Can rent these all day long at $150, but I would need to charge around $350 to $400; which won't fly in my neighborhood.Let me know what type of building you are doing, size and rent. Add in concrete footings, concrete parking and 65-70 foot concrete driveway.We did a 12 wide by 10 tall regular storage unit. This works great for our car people and boats.The key to planning is to get some stakes and string. Layout the spots and drive/park in it. Get the feel, before you put the spaces down.  Good luck on your investment.  If you get enough ground, I would consider a combination location:  a.  RV/Boat/Vehicle storage; b. RV park; c.  Cargo Container storage.  This would take about 20 to 40 acres to visibly segregate them or do on a smaller scale.

Ronald Rohde · Answer

There are good models at www.adventuresincre.com especially for storage. I have some free forms for this type of product too.

Robin Searle · Answer

Well this is from a consumer perspective so wouldn’t help you but I’d like more space on either side. We are packed in there like sardines! Lol

Marlen Weber · Answer

@Michael Wagner, great information on RV storage facilities. I had not even considered that outdoor RV storage would require town approvals. Thanks for sharing.

Michael Wagner · Answer

We've done RV storage at some of our self storage facilities and it does relatively well.  The cost to construct tends to be more than traditional storage and the rent that we can get per square foot tends to be less than traditional storage.  As such, we only really use it as a diversification play at our sites.  My personal reaction to living in a "saturated market" where consolidation by REITS is rampant, would be to expand outside of my immediate market into neighboring towns.  I personally rather have the A plus returns offered when traditional self storage is done right in a neighboring town or state than the B plus returns of RV storage close to home.  Just something to think about.

Looking back at your post, I now see that you are looking at outdoor RV storage.  The ROI there can be very good (I was referring to canopy systems/enclosed RV storage above)....the trick will be town approvals.  And, as you've probably seen, hard and fast "industry numbers" are harder to come by that they are in the self storage world.

Sorry I can't be of more help.

Donovan Pepley · Answer

@Robin Searle is that $60 indoor or outdoor?

Vincent Pirrone · Answer

@Robin Searle haha I will keep that in mind!

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