Make a Good Financial Decision by Investing in RV Parks

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Many people are choosing a full-time RVing lifestyle. Some thought the RV craze would end as soon as COVID-19 died down. However, the pandemic seems to be the catalyst sparking the fire in RV investments. Today’s RV parks are similar to the self-storage industry 25 years ago; the Recreation Vehicle industry is in the early stages and not overbuilt.

In the U.S., roughly 42 million people go camping each year. This means that RV parks, campgrounds, and resorts are in high demand.

There are around 8,750 privately owned Recreation Vehicle parks in the United States. Of those, 94 percent are owned by proprietors of less than five properties. Based on that data, there are not many competitors out there, which makes investing in these types of facilities a good financial decision.

Due to the rising desire to travel, RV investments have gone up more than 100 percent over the past 10 years. The COVID pandemic has been extremely helpful to this rise since many chose to travel around in a home-away-from-home vehicle; rather than staying quarantined inside a residential home.

RVWhen investing in these places, the key thing is the most important factor — location, location, location. Everyone knows that the better the location is, the more in demand it will be. So sprinkling in amenities like pools, gyms, and laundry rooms adds to the attraction of an RV park.

A few other high demand amenities include:

  • Wifi,
  • Dog parks,
  • Nearby fishing holes,
  • Utility hookups,
  • Hiking trails,
  • And tennis, basketball, or bocce ball courts.

Of course, if one really wants their investment to go far, they need to invest in the hosts and management of the RV parks. Having employees and owners who treat each lot tenant like family makes their park more desirable.

An RV park’s location, popularity, and assets could make it worth hundreds of thousands of dollars. For example, a successful Recreation Vehicle park could bring in roughly $50,00 to $90,000 a year.

Most campers tend to be long-term guests, and they usually pay by the week or month. It is normal for RV parks to have around 30 to 50 month-long campers. These guests generally enjoy the discounted week-to-month rates. Those who choose to stay for only a night or three normally pay a higher fee for their temporary stay.

Some campground owners have been quoted saying they have seen around 15 to 20 percent ROI (Return On Investment). In 2020, Statista stated that the campground industry earned around $8.73 billion — that is a lot of cash flow.

Written by Sheena Robertson


Campground Booking: How profitable is it to own a campground?; by Sean Richards
Go Downsize: Do RV Parks Really Make Money? (Facts You Should Know); by Shelby Sullivan
Contrarian Thinking: RV Parks Investing to Make Millions?
Cypress Trail RV Resort: Why Owning an RV Park Lot Can Be a Good Financial Investment; by Matt Silver

Images Courtesy of Albert Lynn’s Flickr Page – Creative Commons License

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