Since the past couple of years, a lot more people have been showing interest in traveling and living inside an RV. This new lifestyle has inspired people to buy and build their very own RV parks. However, are RV parks a good investment? Do they make money? A successful owner of an RV park makes around $50,000 to $90,000 per year. Furthermore, depending on the assets, location, and popularity of the park, the whole area itself can be worth a lot of money.
How Much Money Is Earned Annually By The Owners Of RV Parks?
The possibility of making a profit from an RV park is absolutely true. Despite summer being the hectic season for the business, there are other benefits of not only running but also owning an RV park that is yours. Owners of an RV park can typically generate approximately 10 to 30% of returns on the investment they made for the park. Hence, once the hard work is completed, you get to relax and enjoy a full season that consists of happy customers and guests.
Additionally, certain sites have stated that investing in an RV park can result in a whole lot of money. Employees, seasonal planning, and maintenance can use up a great deal of profit from the RV park; however it can all return back to you if it is done with the correct planning. Majority of the RV campers tend to stay for a long period of time and they usually pay weekly or even monthly. About an average of 30 to 50 RV campers tend to stay for the whole month.
Hence, from these customers a good price can be charged depending on the rates that you offer, maintenance, and the customer service. On the other hand, customers that are staying temporarily at the park generally stay for a few nights; hence, they will usually pay much more for their stay. This is why the weekly and monthly rates are usually a bit lower, but that is guaranteed income.
The manager of the RV park usually earns about $50,000 in a year on average. However, owning that park itself increases the salary, particularly if you know how to manage your money properly. According to its size plus the scale of operation, it is estimated to be about $60,000 to $90,000. In addition, you can also potentially earn more.
Therefore, this is what keeps the RV parks running. The owners keep making money so long as the income and the consistency of the customers is good, and they keep visiting each year with their family and friends.
The Disadvantages And Advantages Of Investing In An RV Park
If you are thinking of investing in an RV park, then there’re numerous questions and a lot of information that needs to be taken into consideration before making a final decision. Massive amount of work goes into making an investment profitable. Therefore, take your time in considering the advantages and disadvantages of a business investment as big as this.
Disadvantages Of Owning An RV Park
Firstly, it should be noted that owning an RV park requires a lot of hard work. In this business, you do not get the summer off. For instance, the month of summer is the busiest time in the Midwest when it comes to this service industry. Whether it’s Memorial Day or Labor Day, you need to be prepared to deliver a memorable experience to your guests at all times.
Guests and customers expect the absolute best. Therefore, every weekend you should provide the ideal customer service with a friendly attitude and smile. At times it might get exhausting; however customers pay to experience that ‘wow’ factor and that is what will bring them back every year.
Another difficult disadvantage of owning an RV park is that you’ll miss several family events, mostly in your business’s first few years. The weekends will be the busiest time for your business and that is when most of the family events take place, such as birthdays, weddings, graduations, anniversaries, etc. This is a hard truth and a fact that you need to accept until your RV park can stand on its feet.
Advantages Of Owning An RV Park
When you see all of the disadvantages of owning an RV park then why would you want to buy it at all? There is an easy answer for that. Having and owning your very own RV park is a profitable and a completely rewarding experience. Despite being busy, you will be the boss. Hence, you have the ability to fix your schedule according to your personal agenda and the requirements of the park. You can find mobile home and RV parks listings on sites like UpFlip.
Moreover, another great advantage of owning an RV park is that it is a cash business. Take your time when it comes to learning how to manage your RV park. It will all depend on good management and hard work in order to generate profit in the first few years of the business. As time goes on, your investment in the RV park will be worth your effort, and you will eventually earn back all the money that you invested and much more.
Despite the summers being busy, owning an RV park is a seasonal business. Therefore, you can go on a holiday in the winters to a warm place in order to recharge and refuel yourself. Moreover, when it comes to having a home on the job during the summer, many owners live at the park itself so they can handle things easily and enjoy a living that is free of cost.
Even though various factors need to be taken into consideration when it comes to purchasing an RV park, the final result has the possibility of being tremendously great. The effort that goes in the whole process of owning your own RV park can appear to be overwhelming, but at the end of the day it is worth all the benefits and profits that come along with it. It is the ultimate cash business that stays busy throughout the whole summer and has a living arrangement for the owner on its property that is free of cost. Therefore, owning an RV park is a smart and beneficial investment that has the potential of producing an abundance of profit.