Category Archives: Why RV/Boat Storage

Where Can You Store Your Boat & RV?

Issue 64 – Boat & RV Storage..Where?

Introduction…In the United States 11,870,000 recreational boating vessels need storage.  Add to that number 8.900,000 recreation vehicles need storage. That totals 20,770,000 recreational items that need to be stored for the off-season.

RV And Boat Sales Growing Self-Storage Demand…RV The research, conducted by Dr. Richard Curtin, RV industry analyst and director of consumer surveys at the University of Michigan, reveals the number of RV-owning households has grown to a new peak of 8.9 million households, up from 7.9 million in 2005. According to the report, 8.5% of U.S. households now own RVs, up from 8.0% in 2005.  Annual U.S. recreational boat sales have averaged 550,000 per year since 1990.

So, where do the 20,770,000  households store their recreational vehicles and boats?  Most of the larger motorhomes, larger travel trailers, and boats can’t be stored in city residential areas.

The self-storage industry has recognized and met this demand.  Many properties have built larger storage units to accommodate the largest motor-coach.

What’s next..Currently, we are finalizing the purchase of a 60,000 square foot boat storage facility.  It seems adding recreational vehicles storage to our partners’ portfolios would be a logical path to take.

7 Top Benefits Of Storage Property Investing

Storage Investing Issue No. 61

Introduction…  Let’s first look at the benefits for customers using our storage properties before we discuss the benefits of investing.  Without a strong and growing customer base, it would not make sense to get involved as investors.

7 Customer Benefits of Using Storage Units

  1. Self-storage units are safe as well as a cost-effective solution to having extra stuff
  2. Self-storage units are a cheaper solution than building onto the garage
  3. Self-storage units are great for those who don’t have a permanent address like full-time RVers or full-time cruise ship travelers
  4. Self-storage units are a great place to store items that the kids at college no longer need, but might later when they start a household
  5. Self-storage units are beneficial to those who started working from home and need extra space
  6. Self-storage units are used by those who have inherited personal property and need time and a place to sort through the items
  7. Self-storage units provide a place for small businesses to store extra inventory, equipment, or files

The last item I know from personal experience.  When I first started working for a downtown Fort Worth Certified Public Accounting firm, somehow I got the job of periodically going the the storage unit to purge old files.  So, storing old but not yet past the statute of limitations are prime candidates for self-storage.

Conclusion… We will discuss “7 Top Benefits of Storage Property Investing” next issue now that we have detailed the customers 7 Top Benefits of Using Storage Units

Record Breaking Self-Storage Sale…In Menomonee & Waukesha???

Introduction…Unless you are from the upper Midwest you’ve probably never heard of Menomonee (pop. 35,974) or Waukesha (pop. 71,489.)

Click here to watch the video “Record Breaking Sale…”

But, some well-funded self-storage buyer did.  He paid $17,100,000 for The Vault of Menomonee Falls and The Vault of Waukesha.  This is the highest amount ever paid for a self-storage portfolio in the Greater Milwaukee area as announced by Marcus & Millichap.

This sale…This sale works out to be gigantic $16,553 per unit or $164 per square foot for the existing rentable space. The Menomonee property has another 317 units to be completed in mid-2018 which was factored in the purchase price and is yet to be leased.

In contrast, DFW has a population of 7,300,000 and is expected to add another 125,000 people in the next year.

So, DFW’s one year population growth is expected to exceed the total population of Menomonee and Waukesha.

The high price to purchase existing self-storage properties in Menomonee and Waukesha gives contrast to what we’ve been able to secure in the DFW area.  We’re buying 98% leased self-storage in Dallas for $36 per square foot.

Conclusion…Does our property seem like a bargain purchase to you?

 

The Hottest Way To Invest In a 6,000 Year Old Industry

Boat & RV Storage

Introduction...In our last issue of the Self-StorageInsider.com, we discovered the first self-storage facilities were probably in China. About 6,000 years ago, the Chinese would often store their possessions in clay pots in public underground storage pits. These pits were monitored, to make sure that nobody could remove any pot or its contents except for their own.

What drives today’s industry…You’ve run out of room to stash that old cherrywood table, your high school sports trophies, Grandma’s wedding dress and those bulging boxes of tax records. What to do? Rent a 10-by-15-foot storage unit, for about $100 per month, and stick all the excess stuff in there. Even if your home doesn’t come with an attic, you have one now.

And where can you store your boat and RV.  Most residential neighborhoods don’t allow you to store them in front or behind the house.  The demand is so strong for boat and RV storage, that you are wise find storage before you buy that boat or RV.  Prices for these storage units run $200 to $500 per month.

As commercial property goes, self-storage has none of the sex appeal of a gleaming office building or a ritzy shopping mall. There are more than 50,000 self-storage facilities in the U.S. — nondescript warehouses filled with cubicles where Americans keep the belongings that don’t fit into their homes. But even though self-storage is about as unassuming an industry as you can get, it turns out to be a pretty solid investment — often better than other kinds of real estate.

For several years, the wealthy’s favorite kind of real estate investment was the apartment property. But in the last several months, they’ve shifted to self-storage, a property type that seems a little humdrum.

Why? It is recession-resistant. There are other interesting factors that I’ll explain. But first, here’s some good news. Though some of the most exciting types of self-storage investments are restricted to only the wealthiest investors, anybody can get in on this trend. Ordinary investors can participate in the self-storage real estate market.

And even very wealthy investors can learn a lot about the sector by studying self-storage REITs and taking a cue from Forbes 400 member B. Wayne Hughes, who built his $2.4 billion fortune on self-storage. Mr. Hughes founded Public Storage in 1972 which is now the largest self-storage REIT with 2,200 locations in U.S. and Europe, totaling 142 million square feet of rentable space.

In conclusion…Does self-storage intrigue you?  Drop me a note at bill@billmoist.net and we can discuss in private.

The Renaissance of A 6,000-Year-Old Industry

Ancient Chinese Pottery

Introduction...The first self-storage facilities were probably in China. About 6,000 years ago, the Chinese would often store their possessions in clay pots in public underground storage pits. These pits were monitored, to make sure that nobody could remove any pot or its contents except for their own.

Thousands of years later, the British had refined the concept, for the sake of dignitaries who had to be away from home for extended periods, by crating these items and placing them in stables – often with watchmen to secure them. These arrangements for storage were made by bankers, who procured such storage through third parties.

In the 1850s, the storage business came to America with the creation of Bekins, which was founded by Martin Bekins, son of a Dutch immigrant. Bekins recognized the new migration of Americans to the west, and was the first to build a facility for the storage of household goods and valuables.

In modern times…1906, Bekins built the first reinforced steel and concrete warehouse in Los Angeles, and the second in San Francisco. It is interesting to note that during the great earthquake of 1906 in San Francisco, this warehouse was one of the few structures that did not collapse.

On the east coast, more storage was being constructed by such companies as Minneapolis Van Lines and Weimer Storage. Indeed, the 1920s saw a large number of companies enter the self-storage industry. In 1928, Arthur Trachte, of Trachte Building Systems, built interconnected metal garages for “cars without homes”.

The modern self storage industry began in roughly the 1960s. But the large- scale, institutional side of the business began in 1972, with the first Public Storage facility in El Cajon, California.

Today, there are around 52,000 self-storage facilities in the U.S. The total area of this storage is three times the size of Manhattan – under roof! The industry generates over $5,200,000,000 in revenue each year. One in every ten families in the U.S. rents a self-storage space.

In Conclusions…The Renaissance of A 6,000-Year-Old Industry is taking place in America today and you can be a part of it.  There are 52,000 facilities in the U.S.  But experts in industry are saying that the earliest the U.S. demand will be satisfied is 2025.  There still is room for you to participate.

Continued Next Week…Get ten little known secrets this industry produces  steady real estate income.  Click here to make sure you can be a part of this Renaissance.

Five Questions To Ask First About RV/Boat Storage

RV/Boat Storage

Introduction...Ask any boat or RV owner and they’ll tell you: Finding a place to store those vehicles can be tough. Homeowners’ associations hate seeing them in driveways; cities ticket them when they’re parked on the street; and apartment-complex managers don’t take kindly to sacrificing their limited parking.

There is a great opportunity for self-storage business owners to expand our business thanks to the growing demand in RV and boat storage and the low supply thereof. There are five questions one should ask when adding these storage units to our new or existing self-storage business.

1. Why Should We Offer Boat/RV Storage?

The first thing we’ll want to ask ourselves when considering the addition of boat/RV storage is whether it’ll be profitable. In most markets, it will. The main reason is the scarcity of the service.

2. What Type of Boat/RV Storage Should We Offer?

The great thing about adding boat/RV storage to your facility is it won’t necessarily cost a fortune. Besides tailoring it to the needs of future consumers, you can modify it to fit your budget.

There are essentially three types of boat/RV storage, ranging from simple to luxurious. The most basic form is a simple parking lot with spaces available for rent. If we have land you can pave or an existing parking lot that rarely fills up, converting it to storage should be easy. Simply use paint to designate rental spots and number them accordingly.

One step up from parking-lot storage is canopy storage. This type features a roof only or a roof and walls on two or three sides. It’ll cost a little more, but it’s a worthwhile investment if you live in an area where it snows or you get excessive sun; tenants will be happy to know that a canopy is protecting their vehicle from the elements.

If we want to cater to customers who expect luxury, you can offer fully enclosed units. These feature high clearance for even the tallest of vehicles as well as roll-up doors, dependable locks and even unit alarms. If you live in an area where you see many high-end boats and RVs, this type of storage will guarantee you business.

3. What Basic Features Do I Need?

Installing boat/RV storage won’t require you to change everything about our facility, but it will necessitate a few tweaks. The most important thing you’ll want to offer these tenants is space—not just to park but also to drive. We’ll need drive aisles that are at least 35 feet wide to accommodate large motorhomes and vehicles that are towing boats or a fifth-wheel trailer. By giving vehicle owners that extra room, you’ll not only improve their storage experience, you’ll prevent them from potentially damaging your property.

4. What Amenities Should We Offer?

If we really want to go the distance, there are a number of additional features and services we can offer. Wash and dump stations, propane sales, vacuums with long hoses and even air pumps are outstanding amenities that are likely to result in consumers choosing your facility over another. Providing electrical hookups in units will wow tenants as well.

5. How Do We Attract These Tenants?

They’re probably already looking for us! All we have to do is let them know we exist. Prioritize Web-based marketing over older techniques such as print advertising. Use our website by including quality photos of your property as well as a detailed list of amenities you offer specifically for boat and RV owners. Use the same terminology on our website that boat/RV owners use, as this will help your facility place higher in online searches.

In conclusion...With increasing numbers of people eager for a taste of life on the road (or sea), RV and boat storage is more desirable than ever. Fortunately, supply hasn’t caught up with demand—that’s where we come in and can create great cash flow.

Source: Interested in Embarking on Boat/RV Storage? Insider Self-Storage, July 14, 2016