How to Make the Most of Your RV Park Investment
While investment real estate is typically seen as having a strong ROI, choosing to invest in an RV park is often an appealing option to those who are just starting out in this area. According to RVParkUniversity.com, RV parks can offer returns of 10% to 20% and are among the highest-yielding options for real estate investments. With an estimated 30 million RV enthusiasts nationwide, it’s not surprising that many people opt to look at RV campgrounds for sale when they want to maximize their potential returns.
That said, merely investing in any RV park doesn’t guarantee a successful venture. If you want to get the most out of your investment, you’ll want to look for the quality of these three considerations first.
No matter what type of real estate you plan to invest in, it really is about “location, location, location.” It truly is one of the most important factors in determining whether your intended investment will prove to be a good one. The area in which your RV park is located will determine the amount of demand. If it’s nearby other camping facilities, this can sometimes prove detrimental (too much supply without enough demand) or beneficial (if it’s in an area that already has a lot of existing demand without enough supply). Keep in mind that the area in which you invest can also determine your season (and therefore the maximum return you could expect). Selecting an RV park in a destination that offers good camping weather year-round may provide a very different experience compared to a park located way up in the north of the country. It’s essential to conduct thorough research beforehand pertaining to the location and the typical camping demographic you can expect there.
Not every RV park is going to come with impressive amenities. Some are fairly basic — which is fine if it’s located in an area that supports only that kind of park. However, you may be able to attract new (and higher-paying) customers if your RV park has some more luxurious offerings. Having a swimming pool or water park, free Wifi, or entertainment options may bring in big families, affluent millennials, or baby boomers who have sold their homes and want to explore the country in their recreational vehicle. Keep in mind that the different amenities you offer can set you apart from other options in the area, which is key for outranking the competition.
When you invest in an RV park, you might not give a lot of initial thought to marketing. But in order to be successful, you’ll need to come up with a promotional strategy. You’ll find marketing your RV park a whole lot easier if it comes with pre-established name recognition. That’s often why people choose to invest in an RV park that’s part of a franchise, rather than one that’s independently owned. There are other reasons to make that decision, of course, but it’s certainly a comfort to know that you can count on the franchise’s existing reputation to bring in clientele.
If you give these three considerations some careful thought before you invest in an RV park, you should be able to make a well-informed decision that results in a successful venture. To find out more about RV park investing, contact us today.