How to Start an RV Park

You don’t need to build an RV park from scratch to run a successful and profitable RV park business. There’s also the option of buying an existing RV park. However, there are pros and cons to each option.

Reasons to buy an existing RV park

Here are key benefits you’ll get from buying an already-established RV park:

• Less red tape: If you decide to purchase an existing park, then you won’t need to worry about zoning and planning.
• Existing customer base: When you buy an RV park, you’ll generally get a few of the old owner’s customers. This means business elements like marketing won’t be quite as much of a concern since you’ll already have a leg up from the previous owner’s customer base and marketing efforts.
• Easier financing: It’s easier to get a loan to buy an existing RV park than it is to get a loan to build an RV park, partially because the existing RV park has (hopefully) already proven successful.

Reasons to build your RV park from scratch

There are a few reasons why plenty of RV park owners choose to build their parks from the ground up:

• More opportunities for customization: If you buy an existing RV park, it’ll be costly to really make it your own. You may find that you’ll need to do quite a lot of construction to achieve your vision.
• No bad reputation: If the park you buy has developed a poor reputation, you’ll need to overcome that to make it a success. This can sometimes be quite the challenge.

Before you get into the basic steps required to set up an RV park, you need to understand how much the whole process is going to cost. Planning your budget and finances is a key first step because of the high upfront investment involved. Plus, the overall costs will affect what other steps you need to take.

How much you’ll have to pay to start your own RV park depends on whether you go the from-scratch route or buy an existing business:

• Building from scratch: Estimates published online for how much it costs to build an RV park from scratch tend to fall somewhere in the range of $20,000–$150,000, but these figures likely exclude the cost of buying land. Some all-inclusive estimates sit at over $1 million. It’s safe to say that the exact cost will depend on how many RV sites you plan to install and what types of amenities you plan to provide.
• Buying an existing RV park: Most estimates for the cost of purchasing an existing RV park start at around $100,000, but bigger or more well-established RV parks can cost millions of dollars. It’s important to bear in mind that in addition to purchasing the business and the land, you may also need to pay to update the facilities.

Regardless of which route you choose, you’ll need to cover basic costs just to be in business and pay for necessities like insurance and must-have amenities for campers. All things considered, whether it’d actually be cheaper to buy an existing RV park depends on the size and state of the property. In some cases, it’ll work out to be nearly the same cost as building your own.

So, you’ve decided to build an RV park. What comes next? The process is a little more complicated than buying an existing RV park.

1. Do your research

Before you get started planning and developing your RV park, you’ll need to do a little research. You’ll need a business plan for any financing options, and business plans typically require proof of demand.

Over the last several years, demand for new RV parks has increased, as has the interest in RV travel in general. However, has demand increased specifically where you want to start an RV park? Do the research necessary to find out.

Zoning laws

Beyond assessing the market for RV parks, you’ll also need to check your local and state commercial zoning regulations. Your local municipality’s office should be able to point you to the laws that will apply to your business plans.

One consideration worth bearing in mind is that you may need different zoning permits if you’re planning to start a mobile home park rather than an RV park. Making sure you understand what you need before you employ contractors will spare you stress and give you an accurate idea of when you’ll be able to open for business.

2. Come up with a business plan

To make good money from your RV park and avoid making a poor investment, you’re going to need a business plan.

This business plan should include an array of information, including:

• Profit and loss estimations and projections backed by research.
• A competitive analysis that shows how you intend to stand out in your region.
• Proof of demand in your area.

Once you have a business plan in place, you can use it to pursue financing and start planning the development of your RV park.

3. Acquire financing

Building an RV park takes a lot of money. Unless you have a spare $100,000 lying around, you’ll need to get a loan.

You can find local banks that will loan you the money for a new park with a U.S. Small Business Administration (SBA) or Department of Agriculture guarantee. Private investors are also an option.

Once you’ve got the money you need, you can then use it to purchase the land on which you plan to build your RV park. If you already own the land you plan to use, then you’ll just need enough money to cover construction costs.

4. Find suitable land

When looking for the best land for building an RV park, work with a trusted realtor who knows the area. They may know about unadvertised buying opportunities. If they also know about local zoning laws, then they’ll be able to advise you on where you can and can’t build.

As you’re shopping for a parcel of land, keep in mind not just the overall cost of buying the property but also potential future costs. While one piece of land might be cheaper than another, it may require you to pay more later.

In particular, think about costs related to necessary prep work like clearing trees, leveling RV sites, or setting up utilities. Additionally, keep in mind the location and what’s already on the property.

Does the land have natural features that guests might be interested in, such as a waterfall that they can hike to or a pond they can fish from? How accessible or remote is the land? Is it near any popular tourist attractions? Can you hear traffic from a nearby major highway? All these factors will affect the monetary potential of your RV park.

5. Choose a good RV park layout

As you’re putting together your business plan and looking for land, go ahead and start thinking about your RV park layout. This planning process won’t just give you a better idea of what you want for your RV park—it’ll also determine what requirements you’ll need to meet next.

As you put together a layout, keep in mind the basics you’ll need:

• RV parking sites
• Roadways through the sites
• Extra parking at the front of the RV park
• An administrative office, where guests check in
• Restrooms and shower facilities

These are the bare essentials that every RV park must have. Next, think about the more variable features of your RV park.

Size

As you plan your RV park layout, be cognizant of how big each site needs to be—not only to fit a standard RV but also to give campers enough privacy and space to spread out. Your state may have certain restrictions on how big RV sites can be or the number of RVs you can have on an acre of land, so it’s worth checking what state requirements you need to meet in terms of the size of your RV park.

In general, the smaller the park, the lower your earning potential, so make sure your RV park is big enough to accommodate a decent number of RVs. On the flip side, bear in mind that bigger RV parks require more resources and money to maintain.

Utilities

In addition to giving your RV guests a place to park, you also must provide them with access to potable water, electricity, and a septic system. Be sure to check with local and state regulations in this instance as well, as there are often regulations about how you provide utilities and how much space you need to give RVers to hook themselves up.

If you need to install a septic system in a brand-new RV park, it can be costly. You may have to cover the cost of not only the system itself but also government-required tests to ensure your septic system won’t pose a threat to the environment.

Extra amenities

In addition to all the must-haves, a profitable, competitive RV park also often delivers a range of amenities to its guests.

You may want to consider including the following in your layout:

• Social spaces
• Outdoor recreational areas
• A community kitchen
• A community BBQ area
• Dining or event areas
• A pool (or even multiple pools)
• A gym with basic workout equipment
• Children’s play areas or playground(s)
• Laundry facilities

Need help putting together your RV park layout? Consider working with an engineer or architect.

6. Get the necessary permits, licenses, and insurance

When starting any business, there’s paperwork you’ll need to take care of. But there’s a particularly large amount of red tape you’ll need to cut through when starting up an RV park.

For starters, here’s what you’ll need:

• Business license: You’ll need to register your RV park with your Department of State (each state has different guidelines regarding registering a business).
• Construction permit: You can get construction permits from your local zoning office.
• Insurance: State governments require RV parks to be covered by a certain amount of insurance. At the very least, you’ll need property and liability insurance. You may also want extra coverage for your facilities, services, and amenities.
• Miscellaneous permits: You may need additional permits, depending on the amenities you plan to offer at your RV park. For example, if you plan to have a concession stand, you’ll need the permits and licenses for selling and serving food.

Depending on your business structure, you may also need an Employer Identification Number (EIN) for tax purposes. A business bank account is also a good idea for tracking cash flow.

If you’re unsure as to which permits and licenses you need, great places to ask are your nearest U.S. Small Business Administration office or your local municipality and zoning board.

7. Develop your RV park

Once you have your plans and permits and you’re completely cleared to begin development, it’s time for construction to start. After you’ve acquired financing and approval from the local powers that be, hire some contractors, show them your plans, and wait for your RV park to come to life.

Once your RV park is completed, make sure you give it the best chance of success. Here are a few pro tips to live by.

Set out clear rules for residents

To establish a good reputation, you need to ensure that all of your RV park guests enjoy their stay. Sometimes, this means setting out clear guidelines and rules for all guests.

Rules around quiet times, limited numbers of guests per site, pets, alcohol, and more can prevent instances of loud or unruly behavior, littering, and other issues that might negatively impact guests’ experiences.

Build an online presence

Make sure that potential guests can find you. Build a website (with an easy-to-use online booking system), create a Google Business Profile, purchase listings in RV directories, establish a social media presence, and advertise in places where RVers and travelers are likely to see you.

Organize social events

Events can bring attention to your RV park and also ensure that guests have the best time possible (and want to come back). Think about organizing family-friendly events focused around the holidays, but also consider regularly arranging events throughout busy seasons, like in the summer. Possibilities range from karaoke nights to sports tournaments, carnivals, or ice-cream socials.

Ask for feedback

Lastly, ask for feedback! If you know what you’re doing well, you’ll know what not to change. Knowing what you could improve upon is even more important, and finding out early on will allow you to address issues ASAP.

An RV park can be a very good investment—if you take the time to develop a park that meets the current needs of RVers in your area and that offers the amenities they’re looking for. But how much do RV parks really make?

While you shouldn’t expect to be swimming in the millions each year, an RV park can be incredibly profitable. According to RoverPass, RV parks generally have a profit margin of around 30%, with established RV owners often taking home an annual salary of $100,000+. 1

On average, J.D. Power reports that RV campers pay around $33 per day. 2 But that doesn’t really say much about how much you’ll actually make. Your earnings will depend on how many RVs you can accommodate and how popular your RV park is.