Do you want to know the profit potential of an RV park? If YES, here is an analysis of how much RV parks make monthly and how you can increase your income.
Most RV campers are long-term guests and tend to pay by the week or even month. On average, you can get around 30-50 month-long RV campers. Depending on your rates, customer service, and park upkeep, you can generally charge a good price for those customers.
Temporary customers tend to stay for one to three nights at your RV Park, and will generally pay a higher fee for temporary stay. It is because of this that week-to-month rates tend to be a little lower, but are a more guaranteed income.
Owning and managing a successful RV park can simply boil down to where your Park is located and how much land you are purchasing. RV’s take up a lot of space, and hitting that 30-50 long-term campers mark is going to take up a lot of (if not all of) your Park.
How Much Do RV Park Owners Make Monthly?
Even though summers are the busiest part of your season and business, you’ll understand that there is a lot of benefits to owning and running your own RV Park. RV park owners usually generate about 10-30% of returns on their investment. This means that once all the elbow grease is done, you can sit back and relax for a full season of fun.
According to industry data, RV parks cost between $25 and $80 per night depending on the location, the size of the space, and what connections are offered. A successful RV park owner can make from $50,000-$90,000 a year and roughly $10,000 – $35,000 a month.
How Much Does It Cost to Keep an RV Park Running Profitably?
The average cost of a park can be anywhere from $15,000 to $50,000 a piece. It can add up into the $1-3 million range depending on your acreage size.
This cost includes purchasing the land, municipal permits, improving the land with utilities, and other points of concern. A successful RV park itself can end up being worth hundreds of thousands of dollars depending on its popularity, location, and assets. It is entirely possible to make a profit off of an RV park.
In fact, some sites have reported that RV parks can be an investment of hundreds of thousands of dollars. Upkeep, employees and seasonal planning can take a lot of profit out of an RV park, but when done properly, can still guarantee those returns.
One golden rule of thumb for an RV park is that one acre should fit 10 parks. That equates to at least five to eight acres for your park if you want to get your 30-50 long-term campers per season (plus temporary campers).
Researching high-traffic location in your area is a great place to start. Then, look around for private sellers looking to get rid of large property, or perhaps those that are being sold for cheap by banks or the government. Freshwater, electricity, Wi-Fi, and even cable TV are all something to consider when you create an RV park.
A pre-made RV park that you buy outright will already have these hookups but if it doesn’t, then you’ll need to make sure that you create them. Each one will have an added cost, sometimes ranging from hundreds to thousands of dollars.
Using the basic model of 30-50 seasonal parks, you’d be looking at a minimum of $5,000.00 in hookups, water, electricity, and internet expenses. Note that all these are huge part of RV camping. Also, some RV parks have their employees pulling double-duty, while they man the welcoming center, the facilities, and landscaping all at once.
This can help cut costs, but can also result in some inexperienced maintenance depending on whether or not your employees are seasonal or veterans. So, if you’re looking to add more value to your RV park and earn more, below are few tips and perks to consider.
7 Smart Ways to Increase your RV Park Income
- Target Experience Loving Millennials
According to reports, more than one million households started camping last year — 44 million of whom were millennials. With this massively growing client demographic in mind, you must consider their values and adapt. This demographic is continuously influencing and changing industry trends, and you can either choose to keep up or suffer a blow to your customer base.
First, put together on-site amenities that might affect a young person’s decision to visit your campground. Like it or not, gone are the days when going camping meant unplugging from technology. Statistics shows that 88 percent of campers bring along their mobile phones, and Wi-Fi ranks as the top desired amenity among campers (of course, free Wi-Fi is also a primary concern for many visitors).
A lot of park owners overlook the preference of this important demographic. It now presents you with an opportunity to stand out by bringing your park into the 21st century with technology upgrades such as a stable Wi-Fi connection.
Furthermore, one of the key reasons why millennials camp is to spend more time with friends and family. Think of ways to appeal to this sentiment. Perhaps offer a discount for large groups, or “buy one camp spot, get the second at half price.
- Add Showers and Laundry
Whether you’ve been hiking, fishing or just sitting around a fire all week, a shower and fresh clothes are a total necessity. Offering coin-operated showers, washers and dryers will provide convenience for campers and a source of passive income for you. The best part is you’ll never need to leave the park to cash in your change – just tell campers that you have quarters and they’ll bring the cash directly to you.
- Rent Out Vehicles
Although it all depends on the location and size of your park, but you have many options to offer campers. You could invest in golf carts for inside the park, ATV’s for off roading, bicycles or maybe even a horse. Having something unique can make your campground more attractive and bring in plenty of extra cash
- Differentiate Yourself
There are many ways to stand out and sell more other than renting out campground space. Look to differentiate your campground and appeal to a broader market by providing welcome add-ons. When you own a park, you have a lot more money-making opportunities at your disposal than you might think.
Sure, renting out park space will remain your strongest financial asset, but consider integrating auxiliary products and services to boost your bottom line. Whether it’s bolstering your general store, or offering special event space or park add on, there are several ways to upsell your services and increase your profit margin.
Customers are likely already seeking out these products and services, but are forced to visit nearby competition if you don’t offer them. Cater to camper needs in-house and become a one-stop-shop location for outdoor recreation. The initial cost of this will be easily offset by customer demand throughout the year.
- Provide Enticing Activities
Whether your market is snowbirds or campers who are just passing through, add appeal to your RV Park or campground by organizing regular events and activities. The secret here is to understand your market and come up with a plan that strikes a balance for all. Bingo and beer nights may be appealing to some, while others may prefer nature talks or guided walks. If you attract families, think of ways to appeal and entertain kids and adults alike.
- Consider Recycling
Although only a few states offer financial incentives for recycling, there are still many recycling companies across the country that offer cash for recyclables. With some states offering up to 15 cents per bottle, this can really add up. All you have to do is place bins throughout the campground and wait. Plus, it’s good for the environment.
- Amenities for pets
Pet owners are willing to do anything for their pets – including choosing a campground that has them in mind. Providing a dog run for your campers’ best friend will automatically make your campground a better choice than one without it. If there are horse trails, competitions or rodeos near your campground having watering troughs and corrals for horses, you can open up your campground to business for a whole new type of camper.
- Install Vending Machines
Note that having a vending machine can be lucrative in almost any situation but they can be especially profitable at a campground. With a customizable machine, you can sell not only drinks and snacks but toiletries for the showers, bug spray or anything else you think campers might want. The options are endless.
- Don’t Overlook Space
Whether you’re sleeping under the stars or in your air conditioned fifth wheel, nothing spoils a great day of camping like being able to hear your neighbor snore all night. If it’s not possible to space your campsites further from one another, planting trees between spaces is another way to create a noise barrier and sense of privacy for campers. The more alluring the spots are, the more campers are willing to pay.
- Invest in Online Branding
Have it in mind that your digital presence doesn’t end with your own website. But just like any other business today, online branding has to include a social media presence. Growing your entire online presence is the best way to ensure your park gets proper exposure among a new demographic of campers.
Customers are more tech-savvy than ever, and they expect to be able to interact with your brand when they are searching for campgrounds online. When you consider that 90% of customers book their campgrounds online — a large portion of which was done on a mobile device — your online identity is something you can’t afford to ignore.
Make sure to put your best foot forward and consider a professional website design — or redesign, complete with all the functionality digital consumers expect. Remember that these days, features like online reservation systems are standard, and no longer a luxury.
Americans are beginning to accept the trend of travelling to inexpensive locations and exploring the great outdoors. This makes RV parks an attractive destination for many looking for a fun getaway. There are a number of areas that may look promising for an RV park but may not be zoned for such an undertaking.
Much time and some considerations must go into choosing and buying land to create a successful RV park. A market survey is always helpful in determining whether or not a parcel will be large enough for an RV park and will be an economically feasible choice.
Rather than build from scratch, you may choose to buy into a franchised RV park plan. This may require a specific number of RV sites. Building from scratch can cost up to $20,000 for each rental space. In addition, those who want to offer more accommodation options may want to add park models as year round rentals for those without an RV.
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