How do you set up a trailer park? (7 steps)

By Elaine Knight
Page last updated: 23/08/2022 | Next review date: 23/08/2024
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Elaine Knight
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In this blog post, we will answer the following question: How do you set up a trailer park? We will guide you in setting up a successful trailer park business. We will also talk about marketing, profits and possible challenges. 

How do you set up a trailer park?

Setting up a trailer park business takes time, resources and lots of patience! Here is a summary of the steps that you need to follow in order to set a successful campsite business: 

  1. Carry out feasibility studies. With the proper research in place, you can be sure that your trailer park will be a great success. Those who have done a lot of research before delving into a project have gotten the best results. Therefore, it is very important that you take your research very seriously if you want to go far in this profession.

What would this entail, you can only ask? It requires you to do some research on how the business started, how those already in business are, the startup capital it takes to start this trade, and a host of other important information that can help you build a successful brand. 

  1. Write your business plan. Business plans are especially relevant and this is one of the things you need to do before starting your RV business. You will need a professional to help you manage your RV park business plan if you have no idea how to get things done. Also, it is important that you follow the business templates that you have written. You may also consider reviewing this plan from time to time.
  1. Increase your starting capital. Part of what you would learn when conducting extensive research is knowing how much it can take to start this type of business. One of the ways to raise capital is to seek funds from family and friends. On the other hand, you may want to look for a loan from a bank or microfinance bank.

It’s also worth noting that some banks may want you to provide collateral, while others are more particular about how you plan to pay off your debt. There are also some investors who may want to buy into your idea, especially if you have a good, well-detailed business plan.

  1. Register your company and obtain the required license. Before you are granted a license to start operating, you may want to consider registering your business, as this is the right step in the right direction. The chamber of commerce or corporate affairs offices are the places where you can start.

You would also need to determine if this business of yours is a sole proprietorship or a partnership type of business. Consequently, once you have successfully incorporated your business, the next step would be to obtain your license.

  1. Buy an existing park or purchase a landing property and build your own trailer park. Now that things are taking shape, the next thing you need to do is get the location of the business. This may mean that you build your own trailer park, or that you purchase an existing park. If you are buying an existing park, you may not be spending a large amount of money, as if you had to purchase new land.
  1.  Install the required facilities. After you have purchased and renovated an existing park, or have purchased land to build your own, the next thing you will be asked to do is install the necessary facilities. This would imply the acquisition of furniture and some accessories that will make your park suitable and welcoming.
  1. Promote and market your trailer park. The next step would be to make your RV business highly visible to everyone. How can that be achieved? You can do this comfortably when deciding which advertising modes to follow. You can consider word of mouth, the printing of flyers and brochures, using the Internet by advertising on social networking sites, as well as blogging. 

Following these modes of marketing religiously means that you may have a lot of clients soon enough.

How much profit does a trailer park make?

Yearly, a trailer park could make you between 10% to 20% profit. In numbers, that would be an average of $23,750 after you subtract all your upfront costs!

A camping business generates its income by renting small camping spaces, but it can also offer different services, such as electricity, selling food and any other item that customers may need. 

The amount of money to invest in a camping business will depend on whether or not you have the land. If we assume that you start from scratch, you will have to invest in the following:

  • Buy the land, where the price can vary according to the area and the number of square meters that are purchased. Therefore, its price can range from $1,000 per sq ft to $10,000 per sq ft if there are rivers or lakes nearby.
  • Now, if you want to buy an existing campsite, its prices can range from $100,000 to $2,000,000.
  • You will have to invest in licenses and permits for your business, in the design of the campsite, the realization of internal and local roads and the different locations for services. You will also have to invest in electrical installation, plumbing, bathrooms, etc. The costs for this could be from $2,000 to $10,000 depending on how many amenities you want the campground to have. 

List of well-known RV Park business

It is important to note the fact that in every industry there are always brands that perform better or are considered better by customers and the general public than others 

These are some of the top RV park facilities in the US and in the world that should inspire and help you create the best RV park in your area:

  • American RV Resort
  • The KOA Journey Board
  • Cotopaxi / Arkansas River KOA
  • Deer Park Campground
  • Paducah / I-24 / Kentucky Lake KOA
  • Perry’s RV Park and Campground
  • Manatee Hammock Campground
  • Lazy Village Campground-Rv Park
  • Durango KOA Holiday
  • St Louis West / Historic Route 66 KOA Campground
  • Grand Junction KOA Holiday
  • Arrowhead Campsites / RV Park
  • High Pines RV Park
  • Monarch Spur RV Park
  • Atlantic Oaks RV Park
  • Rollins Restaurant RV Park
  • Crescent City / Redwoods KOA Holiday
  • Echo Canyon Campground
  • Harlan County RV Camping.

Final thoughts

Obviously, a camping business can provide growth potential, but this will depend mainly on the size of the place. If your campground is big enough it can easily generate $1 million a year. Now, if your trailer is small, you can gradually buy the adjoining land to grow your business.

An alternative to growing your camping business can be the creation of franchises. Franchises offer excellent potential to grow any business, as they can be offered across the country.

If you are thinking about opening a campground because you are financially cornered and it is your last resort, forget it. A service area is not profitable as the sole source of income. There will be days without a visitor. There will be some dissatisfaction. But in the end, it will certainly be a moral enrichment and the satisfaction of having been able to render a real service.

Please feel free to share your thoughts or tips on how to set up a trailer park!

FAQ on How do you set up a trailer park?

Is owning an RV park profitable?

Owning an RV park can be profitable in the long run, but it will all depend on what kind of parking facility you are providing, how many RVs/acre you have, and the amount of money and time you are willing to invest in this project. 

Are RV lots a good investment?

RV lots are a good long term investment. That is, you have to have patience and do not invest your last resources in this land. In time, it will pay off!

What exactly are RV parks?

RV parks or “trailer parks” in the United States are a flourishing business that uses a growing demand from low-income people, unable to access a home under normal conditions, to fatten the investment portfolio of some of America’s greatest fortunes. 

How much profit does a campground make?

Yearly, a campground could make you between 10% to 20% profit. In numbers, that would be an average of $23,750 after you subtract all your upfront costs! A camping business generates its income by renting small camping spaces, but it can also offer different services, such as electricity, selling food and any other item that customers may need. 

Who is a campground business ideal for?

A campground business is ideal for those people who love the outdoors and socialize with everyone. It is also an excellent business for those who have experience in administration, staffing and maintenance of all kinds.

References

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