Investor · San Antonio, TX · Member since 2015 · 14 posts · 4 votes
Looking at RV Parks in a great destination city for vacationing. Skiing, camping, golf, shopping and casino's within minutes of the parks. Peak season is in the Summer and slightly less so over the holidays. Lots of competition in the area. Focusing on the parks that are already individually metered for all utilities including city sewer. Would like to transition it to a MHP style community without changing the zoning by allowing self contained park models, fifth-wheel campers and the like. Looking to avoid the seasonal income and increase the overall revenue. Thoughts?
I categorize parks as either "Resort" or "Residential." I can see where you would like the stability of the MHP style monthly residents but there are many down sides to having really long-term tenants in such close quarters in such small residences. With a resort style park, if there are personality issues among tenants, they move on quickly. Plus everyone is on vacation so they are more inclined to be happier in general. Residential parks are MHPs with the management issues and clientele but often long-term RV dwellers are in their 'last resort' type housing; with many older RVs, not as well maintained, and more 'problematic' tenants. We see many of those folks being kicked out of park after park for non-payment or other times, they just up and move before rent is due. The good news is they really can't do much damage and you can instantly re-lease the space.
I always say the parks take on the personality of the owners. So you spend the money to market to the type of clients you want and have good management, you'll have fewer problems. Parks with management teams who don't have good systems in place and skimp on maintenance end up with a worse clientele b/c the better ones will quickly move on. Be very careful with you on-site manager. Once they 'go native' it can be very difficult for them to enforce rules and they will side with tenants over your wishes.
In San Antonio, you could have a large Snowbird population if you market to them, to help offset the slower Winter months.