What is an RV park? An abbreviation for Recreational Vehicle, an RV park has a design like a campground. There are individual allotments in which people can camp out overnight or longer.
The first RV was invented in 1910 and was considered a luxury item at its inception.
RV parks started getting popular in the mid-1950s, with more and more people adopting this vehicular camping format.
The concept has only grown since then and has become more sophisticated with the advent of technology.
Pros of owning an RV park
If you are looking to purchase an RV park, it is advisable to consider why making such an investment would be profitable.
Luckily, the pros of owning an RV park are many!
Ingenuity
The reason that RV parks still work is because of the ingenious idea they encapsulate. RV parks combine the concept of camping with a short vacation at a hotel while bringing together the best of both worlds.
One has access to the outdoors from a very proximate standpoint while also being equipped with the amenities and those on the campground.
It is a clever combinational strategy that finds favor in the majority, for it brings to them what they cannot refuse- comfort.
Autonomy
Owning an RV park gives one a lot of autonomy. One has the freedom to plan their schedule to enhance profit best while also avoiding the risk of ending up overworked. Additionally, the existence of an off-season allows for both downtime and other ventures.
A resilient source of income
A campground that allows vehicles and people to reside in allotments indefinitely( granted, of course, that they pay!) is a resilient source of income.
It is fairly immune from economic shifts and witnesses a rise in footfall during the recession.
The reason for this is simple- RV parks are prime examples of low-cost living. Businesses usually base themselves on trends, and trends go in and out of fashion.
An RV park, however, is unlikely ever to lose its appeal. It has universal appeal- it provides a safe space for road trippers, campers, the young, and the elderly.
High-profit potential
Campgrounds, RV parks, and resorts are all-cash businesses.
Even though built on a relatively larger scale, they tend to be good investments due to their potential return margins. A few years of hard work and the right strategic planning will eventually turn itself into steady patronage.
Proximity to Nature
This might not be the criterion that everybody clocks in, but for nature lovers such as me, owning a business that brings one closer to nature is always a giant plus.
Gone are the days when working meant boxed in offices and claustrophobic cubicles.
It is a new age, and with that has come the rise of open-air workspaces. What can be a better example of that than owning and living in an RV park?
Cons of owning a Campground or RV park
As is the case with any business, owning an RV park comes with a list of specific cons.
Living on the campground
Owning a campground is a business that requires one to be physically present onsite.
If you are running the business all year round, it would mean living on the campsite for the entirety of the year. It might not spell convenience for those with families and young children.
It takes a while to get going
Owning an RV park is a business that requires a fair amount of starting funds. Not only does one have to invest in a sizeable chunk of property, but it also needs to be habitable.
Marking allotments, making provisions for basic and advanced amenities- all of these jobs cost money.
Add to this the task of advertising your business as reliable but interesting, and you might find yourself generating profits after more than a year.
Stress & sacrifice
Every job requires a certain level of sacrifice and induces a certain level of stress. An RV park might ask for more than most. Running a business is never easy and especially not when it involves the smooth machinations of so many things all at once.
A certain kind of authenticity and commitment to customer relations is what will set you apart, so slagging off is not an option.
Fortunately, the winter months happen to be the off-season, so you can take some time off to recharge and refresh.
Location Scouting can be hard work
Location is paramount when buying a plot to build an RV park. One needs to purchase land accessible to highways and is also near natural attractions.
Additionally, the land must lend itself easily to plumbing and the installation of septic systems for drainage and disposal of sewage. Finding land that fulfills all of the above criteria takes both time and effort.
Is owning an RV Park profitable?
The short answer? Yes. Most of it is because owning an RV park is a prime example of being one’s boss. As long as one has the correct measures and is willing to put in the hard work, owning an RV park can be very profitable.
You can fix schedules as you please and in tandem with your preferred style of running a business. It, logically speaking, will automatically cause a rise in profits.
Additionally, owning livable land ranks pretty high in terms of assets. Once you establish a solid clientele, you can expect a steady influx of funds.
How much does it cost to start an RV park?
Cost, of course, is a variable quantity that depends on a lot of factors. The primary independent factor that influences the overall cost is the land purchased.
The cost of land, again, is dependent on area, quality and location.
A plot closer to major highways and natural attractions( a lake or hills you can hike up) will naturally be more expensive than one that does not have access to the above-mentioned points.
Furthermore, the land will require sprucing up. It is important to buy land that accommodates the scale of the estimated park size.
For example, the recommended limit of RVs per acre is between 12 and 15. Exceeding this will make the proposition less attractive to customers.
The cost of land is not where it ends. It might be more accurate to pin this as a starting point. After you have taken into account the plot investment amount, look into amenity charges.
Plumbing, the installation of sewage systems, waste disposal, availability of drinking water, electricity- are basic costs.
Additionally, the recreational facilities offered at the campsite take up a sizable chunk of the budget. It is important to plan and take into account all possible expenses before you decide to invest.
The cost to develop an RV park can range from between $15,000-$50,000 per campsite.
Is buying an RV lot a good investment?
A serious investment, certainly, but a good one, nevertheless. Sources cite that the ROI percentage for RV lots tends to be between 10 and 20 percent higher than for normal land-based properties.
Additionally, an RV lot offers more than just cash returns.
It gives one the opportunity of a second home, the amenities of a resort( for those that do), and tailor-made accessibility to easy travel. With the real estate prospects being rewarding, investing in an RV lot is a smart idea.
Of course, there might come a time when you want to sell your lot. Good news there, too, RV lots go up in value the older they get.
Past RV lot owners are known to have doubled and sometimes even tripled their investments upon sale. Keep in mind that a good sale would require good condition, too, so upkeep and maintenance are important factors.
Conclusion
If you find yourself mulling over the possibilities of owning an RV park and are in accord with putting in the hard work to develop it, a little timely research will certainly be of great help. Always remember, gathering information before one makes a decision can never go wrong.
