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Maximize Your Profits With RV and Boat Storage


As the popularity of recreational vehicles and boats continues to soar, so does the demand for secure, convenient storage facilities. Whether you’re considering launching a new business or expanding an existing one, RV and boat storage offers a potentially lucrative opportunity. Keep reading to learn more about starting an RV and boat storage facility, financing options (including the SBA 504 loan), and tips for updating and running a successful storage facility.

Is an RV and Boat Storage Profitable?

RV and boat storage is a highly profitable business for several reasons.

  • High demand: With more people investing in RVs and boats for leisure activities, the need for safe, reliable storage has skyrocketed.
  • Recurring revenue: Storage facilities typically operate on a monthly rental model, providing a steady stream of semi-passive income.
  • Low overhead: Once the initial setup is complete, maintenance and operational costs are relatively low compared to other types of real estate investments.
  • Seasonal utilization: Many RV and boat owners only use their vehicles during certain seasons, creating a consistent need for storage throughout the year.

Why Do You Store RVs and Boats Together?

Storing RVs and boats together makes logistical and financial sense for a few reasons.

  • Similar storage requirements: Both vehicles require large, secure spaces with easy access and adequate protection from the elements.
  • Customer convenience: Many customers who own RVs also own boats or share similar recreational lifestyles. Offering combined storage solutions caters to their needs more efficiently.
  • Maximized facility utilization: By catering to both markets, storage facilities can maintain higher occupancy rates year-round, maximizing profitability.

Financing Options for RV and Boat Storage Facility

Financing an RV and boat storage facility can be challenging, but several viable options exist, including conventional and SBA loans. One of the most beneficial financing options is the SBA 504 loan.

SBA 504 Loan for RV and Boat Storage

The SBA 504 loan program offers long-term, fixed-rate financing for major fixed assets that promote business growth and job creation. It’s an excellent option for financing an RV and boat storage facility’s acquisition, construction, or renovation. Here are the key benefits of a SBA 504 loan.

  • Low down payment: Typically, you only need to provide 10% of the project cost, making it easier to preserve your capital.
  • Fixed interest rates: SBA 504 loans offer long-term fixed rates, providing stability and predictability for financial planning.
  • Long repayment terms: With terms up to 25 years, monthly payments are manageable, enhancing cash flow.

To qualify for an SBA 504 loan, your business must be for-profit and fall within the SBA’s size standards. Additionally, you need to occupy at least 51% of the property for existing buildings or 60% for new construction.

How Can I Update My Boat and RV Storage?

Keeping your storage facility updated is crucial for attracting and retaining customers. Here are some ways to modernize your facility.

  • Install advanced security systems, including surveillance cameras, gated access, and alarm systems, to ensure the safety of stored vehicles.
  • Offer climate-controlled units to protect against extreme weather conditions, which can particularly damage boats and RVs.
  • Implement an online booking and payment system to streamline operations and enhance customer convenience.
  • Regularly maintain and upgrade the facility infrastructure, including paving, lighting, and signage. 
  • Make energy-efficient upgrades, such as installing solar panels or energy-rated appliances.  

You can utilize an SBA 504 loan for many of these updates and may qualify for additional loans if you are using them to help your business go green

Special Considerations for RV and Boat Storage

Running an RV and boat storage facility comes with unique challenges. From space management to environmental concerns, each aspect is crucial in delivering top-notch service and maintaining a profitable operation.

Space Management

Managing space efficiently is one of the most critical factors in the success of an RV and boat storage facility. These vehicles are large, and maneuvering them can be tricky, so your facility layout must prioritize accessibility and ease of movement.

Insurance Requirements

Insurance is a crucial component of running a storage facility. The facility and the customers need adequate coverage to protect against potential losses.

Environmental Concerns

Environmental responsibility is increasingly important for any business, and RV and boat storage facilities are no exception. Implement systems to manage runoff water, especially if your facility is near water. This helps prevent pollution and complies with environmental regulations. Provide proper waste disposal facilities for customers, including recycling bins and hazardous waste disposal options. Consider eco-friendly practices such as installing solar panels, using energy-efficient lighting, and implementing water conservation measures.

Pump Stations

Offering pump stations at your facility adds significant value for customers. These stations allow RV owners to empty their waste tanks conveniently before or after storage. Ensure pump stations are easy to access and strategically located within the facility. Regular maintenance is crucial to prevent clogs and ensure sanitary conditions.

Wash Bays

Wash bays are another valuable amenity that can set your facility apart from the competition. They allow customers to clean their RVs and boats before storing them, which helps maintain the condition of the vehicles.

Compressed Air

Providing compressed air stations is a small but impactful service that can greatly enhance customer satisfaction. RV and boat owners must often inflate tires, tubes, and other equipment.

Apart from the insurance, all of these considerations/conveniences can be financed using an SBA 504 loan. These services count as fixed assets for your business, which are eligible for an SBA loan of up to $5.5 million (again, green projects may qualify for additional loans). 

Start an RV and Boat Storage Business in Colorado

Colorado’s stunning landscapes and recreational opportunities are prime locations for a profitable and growing RV and boat storage business. You can create a successful and sustainable business by understanding the market dynamics, leveraging financing options like the SBA 504 loan, and continuously updating your facility. Whether you’re in Colorado or elsewhere, the potential for growth and profitability is substantial.

Applying for an SBA 504 Loan in Colorado with CEDCO

Securing financing for your RV and boat storage facility is critical for launching or expanding your business. The SBA 504 loan, with its low down payment, fixed interest rates, and long repayment terms, offers a robust financing solution tailored to support major fixed assets. When considering applying for an SBA 504 loan, partnering with CEDCO can provide the expertise and guidance needed to navigate the application process smoothly. 

CEDCO’s experience facilitating SBA loans ensures you receive personalized support and valuable insights, increasing your chances of securing the necessary funding. By leveraging the benefits of the SBA 504 loan through CEDCO, you can confidently invest in your RV and boat storage facility, setting a strong foundation for future success and growth. Contact us today for a free consultation.

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CEDCO Small Business Finance
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