The RV industry is one of the fastest-growing industries in the country. According to Progressive Insurance, more than 11 million households in the U.S. own an RV, and sales have exploded by more than 60% in the last 20 years.
Because RV ownership isn’t possible without proper RV storage (see these 4 HOA Rules about RVs), an RV storage business could be an untapped gold mine. Just think. If all 11.2 million households that own an RV in the U.S. require off-site RV storage, there’s certainly no shortage of opportunity.
Today, let’s explore how to start an RV storage business in detail.
How Much Can You Make from an RV Storage Business?
Before drawing out an RV storage business plan, you may want a better idea of your potential earnings. After all, it’s a big commitment, one you don’t want to make if it won’t generate sizable earnings.
Of course, those earnings will vary, depending on a number of factors–including whether or not your RV storage facility is on a paved or unpaved lot.
Here’s a breakdown of average potential earnings for paved and unpaved lots.
Average Earnings of Unpaved RV Lots
Average Earnings of Paved RV Lots
Ways to Start an RV Storage Business
Whether you have unused residential or commercial land you already own or want to start a business from scratch, RV storage offers a lucrative option. If you want to capitalize on the growing need for RV storage, here are several routes you can take.
Option #1: Buy an Existing RV Storage Facility
- Risk Level – Moderate to high 🟠
- Cost – High 🔴
- Earning Potential – Moderate to high 💲💲
- Time Commitment – Low to moderate 🟡
Your first option is to buy an existing RV storage facility. This requires minimal work and effort, as you can choose to keep the current management in place while you reap the rewards.
However, depending on your location, buying an RV storage facility will be quite expensive. Between the cost of land, security fences, structures, and other expenses, you can easily spend upwards of $1 million.
Option #2: Build a New RV Storage Facility
- Risk Level – High 🔴
- Cost – High 🔴
- Earning Potential – High 💲💲💲
- Time Commitment – Moderate to high 🟠
If you can’t find any RV storage facilities for sale in your area, you can also opt to build one from the ground up. While this option offers the potential of a clean slate where you can design the facility exactly to your liking, it’s also expensive.
As with buying an existing storage facility, you will likely spend upwards of $1 or even $2 million before everything is said and done. This is also the most hands-on approach, as you’ll either have to work at the facility yourself or go through the process of interviewing and hiring staff members.
Cost of Constructing/Owning a Paved RV Lot vs. an Unpaved RV Lot
Note: Much like the total earnings will vary depending on whether it’s a paved or unpaved lot, you should also expect differences in ownership costs.
Option #3: Rent Space on Your Property for RV Storage
- Risk Level – Moderate 🟠
- Cost – Low 🟡
- Earning Potential – Moderate 💲💲
- Time Commitment – Low 🟡
If you don’t want to spend an arm and a leg (or invest a ton of time into starting a new business), you can also rent out space on your existing property for RV storage. Think an unpaved lot, parking space, unused RV pad, or even your driveway – depending on the RV’s size.
This is the easiest and most low-risk option in the realm of RV storage business opportunities because it requires very little overhead and time commitment on your part.
Neighbor is one platform that makes it extremely easy to monetize your land for RV storage. You can rent out as much or as little of your unused land as you want to, and you can earn enough money (enough that the acre of unused land will pay for itself).
The Steps of Establishing an RV Storage Business
#1: Write a Business Plan for an RV Storage Business
Once you know which route you want to take to start your RV storage facility, your first step is to create a business plan. This includes things like:
- Your target audience (e.g., RV owners and boat owners for RV and boat storage business)
- Your projected budget
- Your projected profits
- Where you’ll likely set up the RV business
With a solid RV storage business plan, you and any investors will have a good idea of your earning potential and any risks involved with your venture. Writing a comprehensive business plan shouldn’t take more than several days or weeks and will set you up for success for years to come.
#2: Conduct Market Research for RV Storage Businesses
Of course, you’ll need to do lots of market research to determine
a) Whether an RV storage business is a wise idea financially
b) Whether it will be profitable as a side hustle or primary business in the long run
c) Where the ideal spot is for setting up an RV storage business
Specifically, you’ll need to research things like:
- The number of RV owners in your area (as well as the # of RV tourists that move through the area during peak seasons).
- The available land parcels and facility spots you can purchase and develop
- What your overall marketing and development budget should be
- Whether your business can double as a boat storage facility
This process typically takes an average of six to seven weeks and is essential to creating a solid business plan.
Step #3: Choose Your Location
Next, it’s time to think about the location of your RV storage facility and business operations. You can’t just purchase any piece of land, after all.
If you want your business to be successful, you’ll need to stake out open spaces near campgrounds, lakes, and rivers or places that are relatively close to popular camping and outdoor excursion sites. Remember that lots near these RVer hotspots will be more reliable sources of passive income.
Finding the right location for your business may take a few days or several months. It all depends on how the real estate market is in your area and how many parcels of land are currently for sale.
Step #4: Pay Licensing Costs and Fees, Then Register Your Business
At this stage, you’ll want to contact the local Secretary of State office to determine the business licenses, permits, and fees you must pay.
Registering your business as a sole proprietorship or LLC/limited liability company will usually cost $100 or so, depending on your state.
There are also additional fees and costs to consider, such as:
| Fee or Cost | Filing Amount |
| Publication requirement fees (required in Arizona, Nebraska, and New York) | $600 to $1,200 |
| State Filing Fees | $10 to $300 depending on state |
| Sales Tax ID Number | $0 to $50 |
| Business License | $20 to $500 |
| Business License Renewal Fees | $10 to $300 |
| Zoning Permits | $2,000 to $5,000 |
| Filing to Create an LLC | $50 to $500 |
Each of these costs will vary depending on your state, city, and county. Therefore, it’s important to check with your local county officials and Secretary of State to know exactly how much costs you’ll be incurring.
Step #5: Get Business Insurance
If you start a boat and RV storage business, you’ll need to acquire business insurance. On average, you can expect to pay around $400 per month for insurance.
Depending on how many quotes you get and how much research you do, it could take several weeks to set up an insurance policy.
Step #6: Start Development and Building
Once you’ve completed all the steps above, you’ll be ready to start building your RV storage facility and developing your property. (Fair warning: This is the part of the process where things can get really expensive and really time-consuming).
Buying and developing land and constructing buildings for RV and boat storage facilities can cost between $2 and $6 million, depending on the amount of storage space.
It can take several years to properly develop your land and finish constructing any/all storage buildings.
A cheaper alternative to building would be to take an existing building and convert it into an RV storage facility. Aside from the cost of purchasing the property, which could still cost in excess of $1 to $2 million, converting a building into an RV storage facility can cost as little as $10,000 if all you need to do is install an RV garage door to give vehicles access to the building.
Step #7: Set Your Fees
Once you have your RV facility set up and ready to store recreational vehicles, you need to determine your fees. Setting your fees depends on a number of factors, including:
- Covered vs. uncovered storage
- Paved vs. unpaved lots
- Climate-controlled vs. outdoor storage units
- Your location
You can set your rates as flat weekly fees or a monthly rate–or base it on the size of the vehicle being stored. Generally speaking, RV, boat, and vehicle storage will be priced at a flat rate that’s the same for everyone, regardless of vehicle type.
Get Renters Quickly with Neighbor
Whether you’re starting a full-fledged facility or renting out extra space on your property, starting a business in RV storage could be a stellar way to make a regular profit over time.
If you want to maximize your earnings, consider using Neighbor – a peer-to-peer storage marketplace – to place your RV storage business online and advertise to as many RV owners as possible.
Thanks to our reputation as a great place for storage solutions, there’s no reason not to learn how to Become a Neighbor Host today!
