Calling all RV & Boat Storage Operators!
Maybe it's a good thing that I cannot find any real operators, or underwriting models for RV/Boat storage facilities. :)
Who here actually owns and operates these facilities? We were underwriting the feasibility of self storage, however RV/Boat storage seems more lucrative.
My Primary Questions
1. On average, what percentage of revenue are going towards operating expenses?
2. What are all the line items in the expenses line?
3. Average cost to build covered, and climate controlled units.
For those so gracious, I would be willing to pay $/Hr to jump on a zoom call to walk me through the underwriting process of evaluating these sites. Thanks again!!
I don't own stand alone RV/Boat storage but do offer it as part of larger traditional storage facilities. OF course there are variables that will come into play. Here's a quick take on your 3 questions. I hope it serves as a decent starting place for you.
1) Operating expenses should be similar to traditional storage. Of course it will depend on if you are offering warehouse style storage or individual units but the property you own doesn't care if a boat or a RV is in the unit as opposed to household items. With that, (and regarding your Question #2) I think your expense line items and numbers will run very similar to what can be found in this BP blog:
https://www.biggerpockets.com/member-blogs/3915/27972-analyzing-the-financials-of-a-self-storage-facility
You'll have larger units, which typically means longer length of stay and lower turnover so your management/payroll expense could be lower. If it were me, I would be assuming a 30% operating expense knowing I have a chance to beat that by a few percentage points. Are you in an area with snow? That can easily be $5000 plus per year.
Its been almost 6 years since I developed any covered storage, but I was around $25 per square foot for 12' x 45' covered (and enclosed on 3 sides). We enclosed a couple of them and poured concrete floors in them and added electric for an additional $15 per square foot or so. At $40 per square foot they were not climate controlled and were pretty basic (gravel drives, no CC, no insulation). Costs could easily escalate to $65/square foot or more depending on how fancy you go.
I am also converting a large warehouse that will include some large RV and boat spots. Non climate controlled will come out at $24 per square foot but that is largely due to my $4 per square foot purchase price.
Hopefully others with more recent (or stand alone RV/boat storage) will chime in to confirm or deny this but I do not think your numbers are going to differ all that much from a traditional storage underwriting. Some will be higher and others will be lower.
Also, you might reach out to Belinda Lopez who runs the Real Estate Investors Club of Houston (RICH). I believe she has some good experience in this space.
@Jared Vidales Hey Jared, I own 3 that are pretty much exclusive Boat/RV storage and in the middle of adding on a little over 12,000 square feet at one facility right now.
They aren’t terribly different in the grand scheme compared to regular storage but there are a few major differences that I imagine you are aware of by now.
After getting systems in place I think collections are better at Boat/RV compared to mini. I have literally zero collections issues at the place I’m adding on.
Less management intensive, but obviously not as high of rent per square foot. I can talk about this stuff all day. Feel free to connect/message.
Agree with @Zach Quick, although our facility is not up and running yet........ from all of the research we have done to get to this point I would agree. Way less turnover and issues collecting rent. Management can literally be done remotely with access to a computer and a cell phone......We have 49 large units being built and they have 12 month leases and we anticipate them to be fully occupied quickly. Essential once they are full, sit back and collect the checks. Well not literally, because all of that is handled online as well, which takes out the human element again. Our biggest cost, other than your given things like property taxes..... is going to be snow plowing, but that's only a few months a year. The whole reason we got into extra large storage, was the ability to have little to no overhead. We run a business now that has hundreds of thousands in overhead and you wake up every day wondering why you are doing it still!
1. On average, what percentage of revenue are going towards operating expenses?
30-50%
2. What are all the line items in the expenses line?
taxes, management, utilities, insurance, etc. All the typical ones minus reserves, typically
3. Average cost to build covered, and climate controlled units.
you should look up Marshall. very specific to whatever area you're in
I have found a few properties in the suburbs of St. Louis, MO that would be excellent candidates, but most were residential. Even if marked as commercial, getting it zoned as a storage lot seemed darn near impossible when I talked to the county. Are others seeing that in their areas? Are you going more on the outskirts of town where zoning laws are easier?
Hello all, this is a great thread that I would love to get involved with. I live out here in Reno NV and stumbled on a huge need for boat and RV storage out here. I bought a 39' fifth wheel last year and it took me 6 months to find a spot; and I was on 6 different waiting lists. So needless to say I am wanting to shift my focus from single family homes to boat and RV storage.
I have so many questions...and where to start.
The most important question: how many spots can you put on an acre? I know it depends since all spots are not equal so what is an average number?
Next, what is an average price per sq/ft to build the storage? Knowns: ground will be rock, no overhangs, typical 8ft fence with one automatic gate with key pad entry for both entry and exit, lighting and video surveillance.
Ok those two questions will help me understand my total cost and my monthly revenue. I can plug in the monthly expenses.
Appreciate any help!
Jarod
Hey Jarod! Sorry this post has not gotten a ton of traction. I have found that if you can arrange spots correctly (one on each side and two in the middle) you can fit about 60 spots/ acre. What I have found as a common occurrence while researching and making models is that you really need about 3 acres to make boat and RV profitable and worth your time (depending on the value of land in your area and how close you live to it).
Is it really tough for me to give you an accurate $/square foot for construction. Tons of variables. I would recommend calling a few construction/ fence/ light companies to get some ball parks. Keep them in a spread sheet with the company name and phone numbers. You should be able to quickly nail down what it would cost in your market.
Good luck!!
-Jess McLaughlin