Don't like to read?
ROI is often the primary factor when a person considers investing. Real estate attracts a variety of people but deciding between residential properties, mobile home parks, and RV parks comes down to overall return on investment — not simply in dollars but manpower.
A person needs to decide how much time and money they are willing to invest. When dealing with rental property of any kind, there is contact with renters. Residents in apartments, single-family homes, or mobile home parks are typically on a lease or a month-to-month agreement. Whereas RV parks rent in advance on a daily or weekly basis, some parks offer special rates for RVers who chose an extended stay without an expectation of renewing their stay.
If someone is not paying their rent or causing problems, it is more difficult to evict someone from a residence than an RV park. To remove a resident, the property owner must go to court. However, since RVers are most often renting daily or weekly, it can be easier to have them leave since, in many states, going to court is not necessary.
Owning an RV park means more hands-on management due to the nature of the business. For example, after inspecting the space, a new person can pull their rig into the space when a camper leaves. Also, amenities like showers and bathrooms must be cleaned several times daily, and common areas need to be kept hazard-free.
Then, there is the ROI difference. Most real estate experts agree that anything over 8 percent is good, and most residential investors aim for 10-12 percent. If a person wants a greater ROI, investing in an RV park is the way to go, with an average of 15-20 percent.
Brokers report there are five times as many residential investors than those interested in RV parks. This means there are more properties available.
Written by Cathy Milne-Ware
MHU: DIFFERENCES BETWEEN A MOBILE HOME PARK AND RV PARK; by Dave Reynolds
CXRE: RV PARK INVESTMENTS: WHAT INVESTORS SHOULD KNOW
Mark L. Busch, P.C.: What’s The Quickest Way to Get a Tenant Out of My RV Park?
Million Acres: What’s the Average Return on a Real Estate Investment? By Kayleigh Kulp
Top and Featured Image Courtesy of Galveston.com’s Flickr Page – Creative Commons License
Inset Image Courtesy of Boubou’s Flickr Page – Creative Commons License