RV Parks

[Michael Kelly]

Not exactly a mobile home park topic but figured this forum fit the bill closer than any of the others. I'm considering buying a 4 acre tract (thinking 30 spaces) within the city limits to house construction workers for various chemical plants in the area. The demand should be steady for the next 4-5 years. I'm curious as to what the costs will be to develop a wide open piece of land within city limits (access to city water, sewer, electric, etc.) as well as monthly operating costs. Ideally I'd manage it from out of town too which I can see being a challenge. The property is in a fairly high traffic area so once the construction slows down I'd like to convert it into some other form of commercial property, so sharing any thoughts or concerns on converting an RV park into a mixed use or office building would also be appreciated.

[Paul Stout]

I work in the field of the travelling craftsman. I am a Pipefitter by profession and I work in the oil refining business.  I have worked with thousands of "travelers" in my 18 year career and I have travelled myself so I can tell you that many of them are not hard to please.  Many of them are looking for the cheapest rent available and many have their own trailers.  I have known quite a few who have lived for years on primitive lots and pulled their trailer to a nearby station for emptying/filling.  If there is a nearby station this may be an option.  Or it may be worth investing in a central emptying/filling station.  The development expenses and permitting lead times should be drastically reduced.  The municipality may be more open to a primative camping spaces than mobile home or RV spaces.  Your lot rents will be much lower than others in the area and will attract many travelers.  Most travelers are given a per diem.  The more they can save on housing the more per diem they have to drink and party with.  Just remember that you will be chasing these people for money constantly so no management is risky.  I have spoken to mobile home park owners who have rented to a large number of travelers and they tend to be the worst paying tenants they have.  They typically paid but it was hard to get them to remember to pay and pay on time.  On the plus side they did pay the late fees.  They often work odd and long hours so they can be hard to track down.  Its not that they don't have the money its just that paying rent is not their primary thought. Many work 12-14 hours a day 6-7 days a week and want to eat, drink and have fun when they are not working. This is counter intuitive since your credit check will show that they almost always will have better credit and higher wages than anyone else in the park.  The average traveler will make 6 figures.  Most of them are travelers because they chase the highest pay and most overtime.  They are used to meager accommodations.    It can be a lucrative business if you know your dangers and make a plan to deal with them.  Don't get me wrong, they are not all bad at paying and party animals.  Many are good, responsible and hard working people.  The money you can generate from late fees and from the good paying tenants should more than make up for the maniacs.  If the work in the area is at chemical plants then I would say the majority will be Pipefitters.  They are a little crazy but most are good people.  You probably wont get any business from Electricians since they will stay at the swankiest hotels in town and will be in the spa getting manicures and having their work clothes cleaned and pressed when they are off work.  Its the Boiler Makers and Millwrights you really have to watch out for ;)