Things You Need to Know Before Investing in Campgrounds
Campgrounds give you much more control and freedom over your property. You can set the rules and regulations, and control rates and fees collected. You can evict tenants with just a few days’ notice if they break any rules. This type of real estate asset allows you a higher level of control and creates the kind of business model you deem best.
The Types of Tenants
Campground and RV park tenants are different from apartment rental tenants. Your campground tenants will not be long-staying tenants since they are merely camping. With more turnover of tenants, you will less likely have issues collecting payment. Most campers even prepay their stay months beforehand.
However, recreational tenants also have a different set of customer needs. The focus on delighting these customers is resolving problems as quickly as possible. They are more demanding and direct and expect immediate action.
While apartment rentals provide a steady and stable income stream, campgrounds and RV parks are seasonal. Depending on the location of your site, you will see peaks and drops with the passing season. Most RV park owners see a rise in visitors between late spring and early autumn. Innovative campground owners have found ways to accommodate guests even during winter.