Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Three performance scenarios lenders care about

12 Apr 2026 · 1 min

Watch on YouTube

0:34

In this brief presentation, the speaker identifies the two primary factors that determine the performance of boat and RV assets: fall occupancy rates and average rent per space. Lenders should evaluate these variables across three underwriting scenarios, beginning with a downside stress test. The stress test assumes occupancy falls 10 percentage points below the base case while rents remain flat. The speaker emphasizes that if this scenario cannot cover debt service, the purchase lacks sufficient margin, and investors should be aware of this before making an offer. The base case is defined by the trailing average fall occupancy.

Chapters

2 variables drive a boat and RV performer more than any others: fall occupancy and average rent per space. Test both across 3 scenarios. First, the downside. The fall occupancy— show it 10 points lower or below your base assumption. Rents flat at current levels. This is the stress test. If this scenario doesn't service the debt, you're buying with insufficient margin. Know this before you make an offer. You have your base case trailing average fall occupancy.