By Kerri Fivecoat-Campbell

V, boat, and vehicle storage is in high demand these days, and you may be sitting on land that could be converted into additional income. RV sales soared during 2020, and more than 600,000 were shipped wholesale during 2021, making that year one of the biggest in industry history. The need for storage also exploded, as many homeowner associations (HOAs) and cities prohibit them from being parked in residential neighborhoods.

Whitney Jurjevich, owner of Ameripark Covered Storage in Scottsdale, Ariz., says RV/boat and vehicle storage may not work everywhere and owners should conduct at least some due diligence to ensure the investment is worth the expense.

If your research finds there is a need for it in your area and you have one to two excess acres not built out for your storage business, you can convert that acreage to uncovered monthly rentals for relatively low cost.

Jurjevich offers these tips when deciding to convert unused land to RV/boat and vehicle storage:

• Start slow. “Get one or two customers through a small ad in the local newspaper or through word of mouth and see how it works,” Jurjevich advises.
• Invest as little as possible. Until you see what the demand is for this type of storage in your area, keep investment as low as possible.
• Join a trade association for RV/boat storage. Jurjevich says this is important as it will give you access to those in the industry, as well as to attorneys who specialize in this type of lease contract. “The most important step is not to go to a local attorney and have a general real estate contract drawn up,” says Jurjevich. “Go to an attorney who can specializes in leases designed specifically for this use.”

If you find demand is growing for your RV, boat, and vehicle storage, think about expanding and offering more amenities. He says at minimum you will need:

• Gravel or some sort of surfacing if there is grass – “You don’t want to be mowing in between the RVs and vehicles stored there,” says Jurjevich.
• Fencing or a wall – Unless your storage is in a very rural area, Jurjevich says you will likely need at least an 8-foot to 10-foot fence, or ideally a wall.
• Access control gates – This will allow your tenants access during off-hours, while also keeping a record of who is coming and going.
• Sufficient lighting – Many people who store their RVs and boats pick them up before dawn and bring them back after dark. Jurjevich also says, “Tenants want to feel safe, and lighting helps that.”
• Cameras and security – People who park their RVs and boats have a significant investment, and they want to know there is sufficient security to help detour crime. If your facility is in a high-crime area, you may also consider private security drive-bys. At the very least, create a relationship with your local police departments so they can keep an eye on your facility as they patrol.

Jurjevich says you can get 50 to 60 vehicles on 1.5 acres of ground. The investment really depends on your area and what you decide you need in terms of fencing or a wall, which could run $100,000 or more. It also depends on how you expand lighting, security, and gates.

Of course, the investment for providing uncovered parking is less than covered parking, which you might want to expand to later if your customers are asking for it. As well, rents you will be able to collect are less.

Jurjevich says, “Rental pricing is really a red herring; I’ve had facilities that have a 30 percent price difference within a 45-minute drive.” He adds, as with self-storage, the rent you’re able to charge depends on the demand. “If you’re full, you might be charging too little, and if you’re having trouble filling up, you may be charging too much. You get an idea where to start by talking to competitors and then doing the best you can until you hit the spot.”

“For a single owner or a husband-and-wife team, it’s a pretty simple business and easy to manage,” says Jurjevich.

Other advantages to using a small plot of land for uncovered parking include:

• Turning land that isn’t generating income into a profit-generating part of your business.
• If you eventually intend on building another phase to your self-storage, intend on using the property for something else later or selling it, you can easily convert the land back for that use.
• Customers who are seeking outdoor uncovered storage are generally “a little more self-sufficient,” says Jurjevich. “They don’t ask you for much or require much attention.”
• Delinquencies are generally low. Jurjevich says in a decade of being in the business, he has had to do less than one dozen auctions.
• The items are collateralized. Even if you go to auction, Jurjevich says you’re sure to collect your bad debt.

While there are many benefits to offering uncovered storage, Jurjevich says owners must take the business seriously or you may end up with big problems. “Depending on how well it is managed, once you start down that path, you might end up with a mess that is hard to convert back to raw land if you choose,” he says. “You have to make sure you manage it professionally or you may end up with a junk yard.”

If you aren’t on site, you might want to hire a professional management company. However, if that isn’t possible, you will need to monitor what is being parked on the property and make sure tenants are caring for their vehicles and boats.

“If you let something go, before you know it, you will have a bunch of unkept vehicles and boats on the property, which will attract more people who don’t keep their property in working order, and you don’t want those types of renters,” says Jurjevich.