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Regarding Real Estate of any kind, the mantra “Location, Location, Location” still holds true with RV Parks and Campgrounds.  However, if your park is not in the most competitive location, there are still things to do to improve it.

Maximizing Your RV Park’s Value Beyond Location
While it’s true that RV parks near major attractions like Orlando and Miami often command higher cap rates due to their prime locations, this doesn’t mean your park can’t be valuable and attractive to buyers. Let’s explore how you can enhance your park’s appeal and financial performance, regardless of its proximity to major tourist destinations.

Financing Strategies:  You might be in a position to offer some sort of owner financing to assist the buyer in the sale.  With higher bank rates, a slightly lower owner interest rate might tip the scales in your favor.  The buyer gets a break on the interest and doesn’t have to jump through as many hoops as in bank financing.

Understanding Cap Rates and Location:
RV parks in temperate climates near high traffic vacation locations typically sell at higher cap rates due to:

  • Consistent demand from tourists visiting major attractions
  • Higher potential for year-round occupancy
  • Greater revenue generation opportunities
  • However, these parks also come with higher purchase prices, reflecting their increased net operating income.

Building Value Beyond Location
If your park isn’t next door to Disney, don’t worry. Many guests prefer quieter, more natural settings.

Financing Strategies:

  • Focus on Excellent Service: A smiling face at the front desk and a service-oriented attitude can significantly impact guest satisfaction and repeat visits.
  • Maintain Pristine Conditions: Regular maintenance and cleanliness can set your park apart and justify higher rates.
  • Provide Essential Amenities: Ensure you have the basics covered:
  • Clean, well-maintained shower and bath facilities
  • Laundry services
  • Reliable Wi-Fi4

Add Value-Enhancing Features.   As finances allow, consider:

  • Pull-through sites for easier RV access
  • A pool or other water feature if not naturally available
  • Modern, updated facilities
  • Personalize the Guest Experience: Create guest profiles to tailor services and communication to individual preferences
  • Leverage Technology: Implement mobile apps for easy booking and park information access
  • Encourage Positive Reviews: Proactively seek guest feedback and encourage satisfied guests to leave reviews
  • Analyze and Act on Feedback: Use guest comments to continually improve your services and amenities.                                                                                                                                                                                                                                                                       When considering financing or selling your RV park:

Accurate Valuation:

  • Ensure your park’s value is accurately assessed based on its unique features and financial performance.
  • Prepare Financial Documents: Have at least two years of income tax returns ready for potential buyers or lenders
  • Consider Cash Flow: Demonstrate strong, consistent cash flow to attract buyers and secure favorable financing terms
  • Highlight Growth Potential: Showcase opportunities for expansion or service improvements to increase the park’s appeal to investors.                                                Remember, while location plays a role in an RV park’s value, it’s not the only factor. By focusing on excellent service, maintaining high standards, and continually improving your offerings, you can create a valuable and attractive RV park that stands out in the market, regardless of its proximity to major attractions.
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