Pros:
- Steady income: One of the biggest advantages of running a long-term RV park is the steady income it provides. Long-term guests typically pay a monthly fee, which can help you forecast your cash flow and plan your budget more effectively.
- Low turnover: Long-term guests tend to stay for extended periods of time, which means you’ll have fewer vacancies to fill and less time spent on marketing and advertising your park.
- Lower operating costs: Long-term guests typically use fewer resources, such as water and electricity, compared to short-term guests. This means lower operating costs and higher profit margins for the park.
- Community atmosphere: Long-term RV parks often foster a strong sense of community among guests. Regular events, potlucks, and other social activities can help create a welcoming atmosphere and keep guests coming back year after year.
- Repeat customers: Because long-term guests tend to stay for extended periods of time, they are more likely to become repeat customers, providing a consistent source of revenue for the park.
- MYSites Reservation System only charges the guest $3.00 fee one time, subsequent bills have NO FEES whatsoever after that!
Cons:
- Higher maintenance costs: Long-term guests tend to use more of the park’s facilities and amenities, which can result in higher maintenance costs over time.
- More stringent lease agreements: Because long-term guests are signing a lease agreement, the park owner or manager may be responsible for enforcing more stringent rules and regulations.
- More difficult to fill vacancies: Because long-term guests tend to stay for extended periods of time, vacancies can be more difficult to fill compared to short-term RV parks.
- More challenges in attracting new guests: Because long-term RV parks tend to be more specialized, it can be more challenging to attract new guests who may be looking for a different type of RV park.
- More difficult to adjust pricing: Because long-term guests are typically locked into a lease agreement, it can be more difficult to adjust pricing over time to keep up with changes in the market.
- Many campground reservation systems will charge an invoice fee every time you send a long term guest a bill.
Running a long-term RV park can be a great business opportunity for entrepreneurs looking for a steady source of income and a sense of community among guests. However, there are also potential drawbacks to consider, such as higher maintenance costs and more difficult to fill vacancies. Before starting a long-term RV park, it’s important to carefully consider these pros and cons to determine if it’s the right business opportunity for you.
