Starting and running an RV park can be a lucrative business venture, but it also comes with a number of expenses that entrepreneurs need to take into account. In this article, we’ll explore some of the main costs associated with starting and running an RV park.
Cost Of Land
One of the first expenses you’ll need to consider when starting an RV park is the cost of land. Depending on the location of your park and the size of the property, the cost of land can range from a few thousand dollars to hundreds of thousands of dollars.
Construction
After you’ve secured a piece of property, you’ll need to construct the actual RV park. This will include building roads, installing hookups for water and electricity, installing a sewer system, and possibly constructing showers, laundry rooms and other amenities. The cost of construction will vary depending on the size and scope of the project, but it can easily run into tens of thousands of dollars.
Overhead
There are also a number of ongoing overhead costs associated with running an RV park. These include things like property taxes, utilities, and insurance. Additionally, you’ll need to factor in the cost of maintaining the RV park, which can include hiring staff, buying supplies, and making repairs. You can expect to pay several thousand dollars per month in overhead costs.
Insurance
Another important expense to consider is insurance. RV parks are required to carry liability insurance in case of accidents, and this can be a significant cost. You’ll also need to insure any buildings or structures on the property, as well as any vehicles used in the business. Insurance for RV parks typically costs around $3,000 per year.
Permits and Licenses
Depending on the location of your RV park, you may also need to obtain a permit or license from the local government. These typically cost $100 to $200, so it’s important to factor these into your budget.
Labor
Another cost to consider is labor. If you plan on running the RV park yourself, you won’t need to pay any employees. However, if you hire staff to help with the day-to-day operations, you’ll need to factor in their salaries. Additionally, you may need to hire contractors for things like construction, repairs, and maintenance. The average wage for employees is $20-$25 per hour. The average cost to hire a contractor is a percentage of 3-5% of the total building price.
Supplies
In addition to the costs mentioned above, you’ll also need to purchase supplies for the RV park. This can include items like outdoor furniture, trash cans for several areas of the park, items to stock in restrooms, shower room toiletries, etc. You’ll also need to stock the RV park with supplies like cleaning products, landscaping and gardening tools and equipment and other supplies for maintaining your RV park.
Amenities
Another cost to consider is the cost of amenities. Many RV parks offer amenities like swimming pools, laundry facilities, and playgrounds. These amenities can add a significant amount to the cost of running an RV park. You can expect to pay about $1,000 per month for amenities.
Marketing
Finally, you’ll need to factor in the cost of marketing. You’ll need to promote your RV park to potential customers and this can be a costly endeavor. You may need to purchase advertising space, print brochures, or pay for online listings. All of these costs can add up, so it’s important to budget for them accordingly. The typical costs associated with different forms of marketing include:
– Advertising: $500-$5,000
– Brochures and Flyers: $500-$1,000
– Online Listings: $100-$500
Conclusion
As you can see, there are a number of costs associated with starting and running an RV park. When starting an RV park business, you can expect to spend overall about $100,000 to get started. However, with careful planning and budgeting, you can make your RV park a success. Just be sure to factor in all of the costs mentioned above so that you can avoid any surprises down the road.