This is an etching of Cleveland, Ohio from the 1800s. Doesn’t look like much of a town then, but today it’s got a metro population of over 2 million people, and is one of the largest cities in the state. Real estate has always been about location, location, location, and RV parks are no different. So how can you spot a great RV park location, that will serve you well in the decades ahead?
Overnighter vs. Destination
History has proven that the best RV park locations are “destination” as opposed to “overnighter”. An “overnighter” park is simply a spot on the highway to sleep on the way to the real target. The “destination” is that real target. People stop at the “overnighter” for one night and the “destination” for a week at a time. Clearly, there’s no way you can even compare the two as far as location value goes. The right “destination” location is golden forever.
Supply vs. Demand
Choose an area that has little supply of land for additional RV parks. Find niches where the market is effectively closed to new construction. Having the supply of RV spaces limited makes values grow when demand escalates. You will find this in many mountainous areas, where there is simply no flat, buildable land to be found, and in many lake areas where there is no land not in the floodplain that is left for development. Out in the desert, however, you can build a park virtually anywhere as long as you have access to potable water.
Regional issues
Certain parts of America have higher RV occupancy stats than others, simply based on the number of people and the availability of roads to get there. An RV park in Texas will do better in revenue than one in Maine. Also look at issues such as weather – northern RV parks virtually shut down in winter while southern RV parks can operate year round.
Conclusion
Location, location, location is key in the RV park business, just as it is in all forms of real estate. Choose wisely and your RV park purchase will be an asset to your family forever.