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- Robert J. Hayworth, CEO
- 1-800-366-9600
- www.bajastorage.com
- Presentation updated October 2005
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- RV & boat craze
- RV & boat storage customers
- Reasons for investment
- RV & boat storage trends
- Types of RVs & boats
- Types of RV & boat storage
- Costs
- Project start-up
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- RV Craze…….
- past, present, and
future
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- By the end of World World I,
Americans took to the road in camping out of their cars with tents, beds
and cooking facilities added to their family car. The industry flourished after WW2.
- Most RV manufacturers got their start in the 50-60’s.
- There have been thousands of
- advances in aerodynamic design
- and interior comforts along the
- RVs evolutionary path.
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- The latest records show there are over 9 million RVs on the road and an
estimated 30 million RV enthusiasts.
- According to the Recreation Vehicle Industry Association shipments to RV
dealers were up 20% in the first half of 2004 compared to the same
period in 2003. Retail sales for
this period rose 15.2%.
- Despite high fuel prices 7/10 RV owners surveyed planned to use their
RV’s more this year then they did last year. Only 4% planned to use
their RV less. Trends reflect
American’s increased preference for shorter more frequent getaways.
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- Reflecting the hot RV demand, online auction website eBay reported that
“RV” was the most popular search term in 2004 among it’s 125 million
users.
- “As the population has aged towards retirement the no. 1 search term on
the internet shifted from Gucci (2002) to BMW (2003) to this years
leading term RV”-Kevin Maney, technology columnist, USA today
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- A Bloomberg index based on shares of the 5 largest makers of RV’s rose
7.9% in 2004 compared to 7.1% for the Standard and Poor’s (S&P) 500
index of large US companies. Over
a 3 year period (2002-2004) the Crowe Capital RV index posted a 145%
return, exceeding returns generated by the S&P 500 and the
Automotive OEM index.
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- Industry experts predict that in 2010 RV owning households will rise by
15%.
- Industry professionals expect growth rates to accelerate and grow to
500,000-units annual totals w/in the next 5-10 years.
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- Who is behind the RV craze:
- Meet the average RV owner….
- -Young family with children
- -Gen X’ers involved in outdoor
- and sporting activities
- -Retiring baby boomers
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- Parents today are looking for a way to bond with their children while
learning about the nation. RV’ing
provides families with the flexibility they need at an affordable price.
A family of 4 can save 70% on vacation costs over other forms of travel.
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- A 2001 study found Gen X’ers exhibit interest in outdoor activities that
are highly compatible with RV’ing.
- The RV industry plans to spend $50 million dollars over 3 years
appealing to this age group in the “Go RV’ing campaign”.
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- In recent years, more and more NASCAR fans have purchased RVs to travel
to and from the races to camp in the infield or surrounding campgrounds.
They personify the RV lifestyle, which parallels the NASCAR tailgating
experience.
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- A leading force behind the
upswing in the market is the baby boomer population. Everyday 11,000 American turn 50 and
approach retirement. Baby Boomers are investing in retirement, fun,
& the RV and boating lifestyle
(“We are spending our kids inheritance”).
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- Owning an RV or Boat can provide a tax break!
- For the vast majority of RV
buyers, the interest on their loan is deductible as second home mortgage
interest. To qualify, interest expense deductions on the RV must exceed
the taxpayer's standard deduction.
- In addition, the RV must:
- Be used as security for the loan.
- Be rented out less than 15 days per year.
- Have basic sleeping, toilet and cooking facilities.
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- Lending institutions across the country are offering flexible payment
plans to meet buyers needs.
- Loan terms now extend up to 15-18 years with an average down payment of
13-15%.
- Lenders consider RV’ers to be reliable buyers since less then 1.35% of
all RV loans are delinquent.
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- -Today there are an estimated 17.61 million registered and
non-registered recreational boats in use.
- -Virtually every state has a large population of boat enthusiasts who
enjoy water sports.
- -The National Marine Manufacturer’s Association (NMMA) reported that
wholesale dollar sales of boats were up 18.9% in May 2004 compared to
May 2003.
- -An estimated 72 million people currently participate in recreational
boating.
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- Although there was an overall decline of boats registered in most
territories, the Pacific region had a 5.3% increase.
- In 2003 California moved up 2 spots to become the state with the most
boats registered.
- Median household income of boats in top 10 states was $43,318 in 2003.
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- Those who adjust to meet the demand and ride the RV Boat storage “Wave” today.
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- Easy construction
- +
- Easy maintenance
- +
- Untapped market
- +
- Current popularity of RVs
- Less competition = HUGE OPPORTUNITIES
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- Return on investment with RV & Boat storage can be greater than that
of self storage since the building costs are less.
- With RV & Boat storage you will attract a different clientele to
your self-storage facility.
- Today there not enough professional RV & Boat storage
facilities. Of those that exist,
most are strictly open storage facilities with few amenities (security,
on- site conveniences, etc.)
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- There are no moving parts, only roll up doors for “enclosed” RV &
Boat storage facilities so structures are easy to build.
- Virtually NO maintenance – Once the facility is operational,
- maintenance is limited
- to cleanup and
- minor repairs.
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- CITY ORDINANCES & SUBDIVISION CONVENANTS
- Most cities restrict long-term RV parking and require RV owners to move
every 72 hours.
- Many cities don’t allow RVs to be parked in personal driveways.
- More and more communities are making RV’ers take out permits to simply
unload & load RVs. (These
are limited to 8 periods lasting no more then 36 hours each per month).
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- Other cities require that a petition be signed to store vehicles over a
certain size.
- In limited cases, local codes allow RVs to be treated as normal
vehicles, as long as it is within prescribed limits. Usually less then
22 feet in length and 8 1/2 feet in width.
- Newer housing developments have covenants that do not allow for any
overnight RV parking & boat storage.
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- Customers WANT to protect their investment!
- These vehicles are a major long term financial investment ranging from
$60,000 to $1,500,000.
- Streets and yards are vulnerable to vandals.
- Weather and elements are damaging.
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- RV and Boat storage offers space & convenience
- Even with the ability to store a vehicle in a driveway they can become
cumbersome and block normal usage of driveways for personal vehicles.
- Marina storage is becoming more difficult to find, is very expensive,
and leaves the boat exposed to the elements.
- Owners can actually save money by storing their RV or boat closer to
freeways, lakes, etc. Savings in gas can cover the expense
of storage space.
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- Houses being built today have smaller back yards and very rarely have a
side yard.
- Many “baby boomers” are opting to live in adult communities comprised of
condominiums and townhouses. This
means that many RV & Boat owners have NO back or side yard at all.
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- Size 21-40 Feet
- Avg. Cost $81,400
- Price Range
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- 16-21 Feet
- Avg. Cost - $43,600
- Price Range
- $33,000 - $65,000
- Called the Van Camper, a panel truck customized for temporary
facilities.
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- 20-28 Feet
- Avg. Cost - $48,500
- Price Range
- $39,000 - $67,000
- Above sleeping space with lots of privacy for family all around travel.
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- 21-40 Feet
- Avg. Cost - $23,200
- Price Range
- $12,000 - $97,000
- Truck towed, provides more living space for family.
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- 16’6-47 feet
- Price range: $15-$385,000
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- 32-60 feet
- Price range: $200,000-$1 million
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- Types of storage facilities:
- For Boats & RV’s:
- Open storage
- Covered storage
- Covered storage with 3 walls
- Fully enclosed storage
- For Boats:
- -Marina Storage
- (a.k.a. wet slip storage)
- -Dry Stack/Vertical Storage
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- Open storage is often located in remote, rural areas.
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- This type of storage allows for
more security with property line divisions and offers both upper and
rear protection from the elements.
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- These units are similar to
garages. They may have heat,
electricity, automatic doors, locked private areas, and other
amenities. Many times these
units are sold like condominiums.
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- Fully Enclosed-$10.00-$12.50 per square foot.
- Covered-$5.50-$7.50 per square foot.
- Covered with 3 walls-$6.50-$8.50 per square foot.
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- Averages $45-$750/per month for a unit depending on the type of unit
preferred to rent, and the area you are looking at.
- The higher end ones offer exclusive security, sealed and climate
controlled areas with electricity, running water, and personal access.
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- Manager – Most are on site residing in apartments to keep up constant
surveillance.
- Insurance – Can be through local agent or broker, or a specialized
Self-Storage Specialty Insurance Agency.
- Security –
- On site managers
- Computer controller access
- Locked gates
- Security cameras, dogs
- Perimeter fences, special
lighting
- Advertising – Local yellow pages, mailers, TV, radio, internet services,
association magazines, and local KOA’s.
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- Property
- Design
- Engineering
- Construction
- Financing
- Marketing
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- Marketability in area
- Demographics of the area
- Feasibility
- Zoning restrictions/possibilities
- Competition (Fierce/Loose)
- Financing
- Nearby freeway access a plus
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- Construction Needs for the Job
- Architect/Designer
- Civil
- Contractor
- Attorney (optional)
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- Financing options:
- Banks
- SBAs
- Partnerships
- Friends/Family
- Some leasing companies will lease you building materials (steel, etc).
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- Visibility
- Word of mouth
- Signage
- Yellow pages
- Direct mail
- Internet websites
- Multiple service listings
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- Access box, restricted access during off peak hours
- Remote cameras
- 24 hour security guard
- Laser security
- Sound security
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- What if Tenants Don’t Pay?
- Liens are the common remedy for tenants that refuse to pay.
- Access to property can be denied by changing access codes if payments
are not made.
- Abandoned Property?
- If your rent remains unpaid, you are able to place a lien and sell
within the state’s requirements.
- Vehicles abandoned on property can be towed off property. Customers will have to deal with
towing companies to reclaim vehicles.
- Vehicles must go through foreclosure or eviction if there is a lease.
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- Bottom line:
- RV & BOAT STORAGE HAS TREMENDOUS UNTAPPED GROWTH POTENTIAL
- WITH LITTLE OR NO COMPETITION
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- Now is the perfect time to get in on the RV & Boat Craze!
- Start-up is SIMPLE:
- -Find Land
- -Build Project
- -Start Renting!
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Notes
