RV Park Income And Expenses; Know Before You Start.
The trend of using RVs for camping and recreational activities is increasing day by day. Initially, RVs were used only in vacation seasons and for fun purposes only. With the advancements and availability of RV resources, they are also used for living by many people. In urban areas, living in an RV is difficult, but in rural areas, there are fewer restrictions, so living in an RV is easier.
With the increase in craze for living in RV, its market value has also increased. People have started investing money in purchasing land for RV. RV colonies are also being made for people who want to use RV permanently as houses. Near every vacation spot like lakes, forests, mountains and hilly areas, you can find an RV camping park.
Investors are always looking for the best place to start RV parking places. Depending upon the area you have as an investor, you can charge your customers. Charges depend greatly upon facilities too. If you are providing the best health and daily life facilities, the worth of your camping place will increase automatically.
How to choose the spot for the RV park?
Prior to choosing the perfect spot to create an RV park, there are a few things you must take into consideration. You must check if there is enough space for RVs and the people, of course, all the people want to have their private space for relaxing. Secondly, you should check how much resources you can make available to the people.
If you create a superstore and medical store of excellent quality surplus products, you are increasing your camp’s worth. Thirdly, if you provide permanent or long-term RV services, you must ensure that you have a church and school nearby. It would attract customers to your place. If there are restaurants nearby, it would also increase your parking’s popularity.
Fourthly you must have a gasoline pump and a good condition, well-equipped workshop to help fix your customer’s RV. It can be one of the reasons why a customer chooses your RV parking. The last but most important thing to consider is security. You must choose a spot that is secure and make sure that you are providing a secure atmosphere for your customers.
Basic RV park expenses
Basic RV park expenses include goods purchasing, advertisement, insurance, security, income taxes, property rent or purchase price, maintenance and legal documentation. All these are the basic expenses, and before planning to get an RV park, you must have a rough estimate of figures regarding all these things and your budget.
Goods purchasing includes all the facilities you are providing to your customers. It ranges from food to utility items and medication. After your RV park is established, your 70 per cent budget should be reserved for it, and these are also the most paying things.
Advertisement is necessary these days. The more you spend on the advertisement, the more customers you have and vice versa. Initially, you will have to spend a lot of money on advertisement, but once your RV park is known and established, it does not need much advertisement so that you can fix 15 per cent of your budget for advertisement purposes.
To make sure your RV park is safe in case of incidents like fire or natural happenings like flood or earthquake, you have to take some insurance policy. Of course, you can not let all your money be wasted if something bad happens. Insurance is usually done yearly or monthly in the form of instalments, so you need to fix your budget for it accordingly.
This is something on which you should spend a considerable amount of your money, the more secure your place is, the more earning you would have. Most people with kids and place take security as their topmost priority and are ready to pay a handsome amount for it. So, you must ensure a safe environment.
Everything that you have needs proper care and maintenance. The place always being used up by people will require more maintenance. You should fix 5 per cent of your monthly income for maintenance. Proper waste disposal, availability of goods, quality medication and other necessities should be prioritized.
Making your own RV park can actually get you 20 to 30 per cent profit from your total cost price. This is an estimated figure and may vary with the quality of your place and resources.