This investment was originally a land bank. Weber and I are land brokers/investors whod been buying land in the area for about two years. We originally chose the area because of its natural beauty and proximity to Lake Mead. Overton, in the Moapa Valley, with a population of 12,000, is a fast-developing recreational haven for boating, fishing, water-skiing, camping and picnicking year-round.
Despite the abundance of water-related activities, there was no large, easily accessible boat/RV storage within 80 miles of Overton. We decided to change that.
Casting a Line
Before embarking on our new venture, we brought up tourism and visitors in conversation with everyone in town and employees at the closest marinas. We used the county website for maps and demographic information, but mostly hit the pavement to get to meetings and talk to everyone from residents to developers.
My visits and calls to a dozen boat/RV storage facilities around Las Vegas and Lake Mead showed each was at or near capacity, and many had waiting lists. Covered spaces were usually full, and only a few sites offered open-yard spaces. It was obvious competition was slim for boat/RV storage on the northern arm of the lake.
Within Moapa Valley are three other storage facilities. Two offer mostly self-storage with open space for boat/RV parking. However, there is less than a handful of vehicles at these sites combined. The other facility has fairly new boat/RV enclosed spaces, but its in an undesirable neighborhood and difficult to find. OBRS is on the main thoroughfare of the valley, one-half mile south of downtown toward the lake.
Our research showed boat/RV storage offers an income business with low maintenance and generally affluent customers. This type of storage has significant advantages over conventional or portable. RV owners have time and money to play and travel, are responsible and pay bills on time.
We were convinced this was the best use of the property. Seems like we were right: The enclosed spaces are at 90 percent occupancy; the open-yard space occupancy has increased 50 percent since we took over; and the new shaded spaces are 10 percent occupied.
The Right Place
Nine months later, wed made $500,000 for our phase-one improvements. Part of this included raising a portion of the sites grade about 2 feet and digging a trench to direct potential flood water toward the lake. We then paved 2 acres, but after learning the architects original drawings of the property line and main building did not match the construction companys prints, we had to add a couple hundred square feet of grading and more pavement. We then added two steel carport buildings for an additional 96 spaces. Striping was the only delay, which was put on hold until after the spring winds calmed down.
The facility offers enclosed, covered and open storage ranging in size from 12-by-25 to 19-by-35 feet. Enclosed spaces rent for $160 to $305, covered spaces are $90, and open gravel space costs $1.50 per linear foot per month. The 40-foot storage containers cost $165, and the 20-foot containers run $100. We also offer 20- and 40-foot portable metal containers for storage at our facility or at the customers desired location.
Our research showed customers wanted an electronic access gate and keypad, wide drive aisles and minimal obstructions. Other amenities include video monitoring, wireless Internet access, compressed air, modern restrooms and 110-volt outlets in covered areas. In addition, although we have minimal crime in Moapa Valley, were installing a digital video-surveillance system with two cameras at the gate and one overlooking the yard. The facility has 24-hour access, and management is on site from 8 a.m. to 6 p.m. every day.
We plan to add a convenience/liquor store by converting the enclosed spaces in the front of the building to retail. Based on demand over the next year, well add more fully enclosed or covered storage or more containers. Finally, when it becomes feasible, we hope to add panels for solar power.
Operations
Weve learned marketing includes designing a website, ads for the phonebook and local newspaper, signs and billboards. I also advertise in regional boat and RV magazines. Having no background with Internet optimization, it took months of research to understand the critical components (facility information, keywords, links, etc.) for a proper and searchable website. Many of these tasks seem obvious, but if youve never done it before, its not an easy process.
My uncle, Mike Milmeister, who owns and operates self-storages in Los Angeles, told me, You do whatever it takes to fill the place up. So I became an expert observer of every sign I saw before calling sign companies to design what I thought would be eye-catching and informative.
The website was the most aggravating marketing task, but it was also the most critical. I researched other industry sites that were impressive and integrated the best parts: highlights of our site and area, prices, contact information, even personal information. I think customers want to know about who is storing their $100,000 vehicles. But all this work is useless if nobody knows about the site. I learned we needed keywords to register and link with every related service or website. We also decided to offer an online reservation form.
The best lesson we learned from experts is people appreciate customer service and being treated like we would want to be treated. Hence, I do my best to speak with customers immediately if a question or concern arises, and we find a solution that makes everyone happy.
The Good and the Bad
Newcomers to boat and RV storage should realize theyll face many challenges that can seem overwhelming at times. Its best to take it one step at a time. Competent accounting is critical. Dont get too excited about problems or complaints, because they usually sound worse than they really are. If you dont have management skills yourself, find someone with experience in accounting, construction, finance, business operation and marketing.
The good experiences of running this business far outweigh the bad. The best part is visiting with people who are getting boats ready for a fun day at the lake. It feels good knowing we provide excellent storage needs, bringing them convenience in their recreational experiences. It feels good to see the checks come in too!
Randy Milmeister owns and operates Overton Boat & RV Storage in Overton, Nev., along with his partners, J. Scott Weber and Milo Hurst. For more information, call 702.397.8118; visit www.overtonboatandrvstorage.com.