During the COVID-19 pandemic, RV sales surged, as travelers scoured for ways to travel responsibly, without exposing themselves (or their families) to unnecessary risk. But even with pandemic restrictions lifting and the post-COVID era taking full form, RV ownership still sees surprising popularity.
In a way air travel can’t, a home on wheels provides creature comforts while still granting you the flexibility to explore the world. Which is one of many reasons forecasts show that “RV wholesale shipments are projected to rise above 350,000 units in 2024.”
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.
Write a Business Plan
Firstly, you’ll want to write a dedicated business plan. This is important both for you and for any future investors you might want to bring into the venture.
Your business plan is essentially the framework for your business, describing things like:
- Your target audience (e.g., RV owners and boat owners for RV and boat storage)
- Your projected budget
- Your projected profits
- Where you’ll likely set up the RV business
- And more
Think of this as a set of guidelines that will drive your business in the right direction, which is especially important if it’s your first entrepreneurial enterprise!
As a best practice, be as specific as possible in your business plan. A business plan for a boat storage business won’t look the same as a business plan for an RV storage business.
Do Market Research
Of course, you’ll need to do lots of market research to determine both whether setting up an RV storage business is a wise idea financially and whether it will be profitable as a side hustle or primary business in the long run.
Specifically, you’ll need to research things like:
- A number of RV owners in your area or RV tourists that go through your area
- The available land parcels and facility spots you can purchase and develop
- Your overall marketing budget, based on your savings and potential investors you can sway to your business
This market research will help you make smart decisions regarding marketing, development, and so on. When building up your RV storage business from scratch, every move should be strategic.
Choose Your Location (and Consider Location Size)
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.
Instead, you’ll need open spaces near campgrounds, lakes, and rivers, or places that are relatively close to popular camping and outdoor excursion sites. These are the areas where RV owners want to stash their vehicles, either in the short term or the long term. Remember that lots near these RVer hotspots will be more reliable sources of passive income.
As you research different land parcels that are available, be sure to research what zoning is needed for RV storage and costs. Zoning laws might limit the kind of facilities you can build on the land parcels you purchase (e.g., some parcels may not be zoned for an enclosed individual storage facility, requiring you to rent out open-air storage spaces instead).
Furthermore, remember that the number of amenities (national parks, tourist attractions, etc.) will directly correlate with the cost to purchase outright. In other words, the more amenities, the more expensive a parcel of land will be.
If you don’t have enough money to buy the land for your RV storage business initially, you can take out a business loan to get the job done. You’ll need a good credit score, though, and a low debt-to-income ratio so your lender knows that you’ll be able to make your loan payments on time.
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’ll need to pay. Registering your business as a sole proprietorship or LLC/limited liability company will usually cost $100 or so, and other fees can add up to a few hundred dollars.
Since you are setting up an RV storage space business and potentially building facilities, your city or town might order an inspection of the location to determine its suitability for your business enterprise. It’s best to do this sooner rather than later, as the entire process of paying licensing costs and fees and waiting for inspection results can take several weeks or months.
If the inspection returns subpar results – for example, maybe the ground isn’t stable enough for building or there’s something else wrong with it – you’ll need to find new land for your RV storage facility.
Get Business Insurance
Don’t forget to look into business insurance. Business insurance will protect you in the event of a disaster or some other liability concern, like an RV rental customer suing you for damages. Business insurance will protect your personal assets from being depleted through legal action.
Fortunately, you should be able to contact any commercial insurance provider in your local area to get the insurance policy that works for you. Be sure to tell them specifically that you need an insurance policy tailored for RV storage lot ownership; that way, it will cover any potential legal eventualities or possibilities in your business niche. Boat and RV storage insurance is often available via organizations like the RV Industry Association, too.
Start Development and Building
Now it’s finally time to start building your RV storage facilities and business operations! You’ll need to hire a contracting company to build any large-scale facilities, like enclosed storage structures or garages, over several months.
However, keep in mind that you can also start an RV storage business with an open-air lot. This is a less secure storage option, so you won’t be able to charge as much money to your customers, translating to a lower amount of passive income.
On the plus side, an open-air RV storage lot is a little easier to get up and running, particularly if you don’t have a big business budget to work with.
In any case, you’ll need to invest in the following:
- Signs pointing customers and RV owners to different lots
- Guard gates and fences
- Maintenance sheds and dump stations
- And more
The more amenities and security features you add to your RV self-storage units or boat storage facilities, the more owners of recreational vehicles will want to use your business.
At this point, you may also want to look into hiring support staff, depending on how many RV owners you plan to service. Fortunately, most RV storage businesses don’t require lots of staff members.
Set Your Fees
So, how much money will you charge for your RV storage services? Depending on your business model, you can charge a universal monthly fee for every space, or you can charge RV owners based on their vehicle sizes.
Many large RV units are anywhere between 25 and 40 feet long, so the storage rate can be up to $450 per month or much more. Remember, you can usually charge much more for your storage facility if you have extra amenities, like secure locks, air-conditioning, etc.
After setting your fees, you’ll also need to determine how you plan to accept money from your renters. You can accept cash, check payments, or debit and credit card payments using electronic payment systems. If you require RV owners to put a card down as part of the rental process, you can automatically charge your customers’ credit cards every month, ensuring you always get paid on time.
Begin Marketing to Potential Clients
All that’s left is to start marketing to your prospective RV owner clients! You can market through out-of-home advertising materials like billboard ads, or you can go online and set up Google PPC/pay-per-click ads to spread the word far and wide.
Develop a marketing plan based on your overall advertising budget, then launch!
Get Clients Quickly with Neighbor
In the long run, starting a business in RV storage could be a great investment and a stellar way to make a regular profit over time. But if you want to reach more potential clients, you might consider using Neighbor – a peer-to-peer storage marketplace – that will let you place your RV storage business online to reach a broader audience than ever.
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!
