Glamping, Camping, & Making $2.5M/Year with One RV Park Investment | Summary and Q&A

TL;DR

Learn the ins and outs of investing in RV parks and glamping properties, including zoning, permitting, and maximizing revenue streams.

Key Insights

• 🏕️ The importance of zoning and permitting in commercial real estate, especially when it comes to glamping and RV parks. It is crucial to ensure compliance during due diligence.
• 💡 Treating real estate as a business perspective, rather than just passive income, can lead to higher potential and increased value through NOI evaluation and cap rate analysis.
• 🌉 The impact of the Airbnb redesign on short-term rentals, emphasizing the need for attention to design, location, and amenities to stand out among the competition.
• 💰 The potential for higher pricing in glamping compared to traditional vacation rentals, with the ability to charge premium rates.
• 🗺️ Consideration of market dynamics, such as gas prices and travel trends, when investing in RV parks and glamping properties.
• 🔌 The importance of utilities and infrastructure, such as electricity and water, in making or breaking the success of glamping businesses.
• 👥 The use of work campers, a community of full-timers who live in their RVs and work at various RV parks, as a staffing solution for hospitality operations.
• 💼 The diverse revenue streams and opportunities within RV parks, including laundry rooms, rental services, food services, and more, contributing to higher cash flow and property value.

Transcript

this is the bigger pockets podcast show 6-5-0 when you're first starting out and you bought a couple houses and you put them on airbnb or you've you've done something on a small residential scale you don't totally grasp what commercial real estate means when it comes to zoning and permitting and regulations and just how serious they are about all t... Read More

Questions & Answers

Q: How do utilities and amenities impact the success of an RV park or glamping property?

Utilities and amenities play a crucial role in the success of RV parks and glamping properties. Proper utilities, such as city water and sewage, are essential for providing a comfortable experience for guests. Additionally, amenities like pools, clean bathhouses, laundry facilities, and functional outdoor spaces enhance the overall guest experience, attracting more bookings and potentially increasing revenue. These factors can also significantly impact the property's value, making it a crucial consideration during the investment process.

Q: Why are work campers a valuable resource for staffing RV parks?

Work campers, also known as nomadic workers or full-time RVers, are individuals or couples who live in their RVs or campers and travel to work at various RV parks and campgrounds. They often possess specialized skills and bring a wealth of experience to the job. Work campers can be hired to handle various roles, such as cleaning, maintenance, office management, and even management positions. They offer a cost-effective staffing solution while ensuring familiarity with the unique demands of the RV park or glamping setting.

Q: How does investing in glamping properties differ from traditional cabins or rentals?

Glamping properties add a level of luxury and uniqueness to the camping experience, attracting guests willing to pay premium rates for an elevated stay. Unlike traditional cabins, glamping properties may feature canvas tents, yurts, or airstreams with luxurious amenities like comfortable beds, heating and air conditioning, and picturesque outdoor spaces. The investment in glamping properties often requires obtaining the necessary permits and zoning, similar to RV parks. The ability to provide a distinctive experience and capture the market demand for luxury camping can lead to higher cash flow and appreciation potential.

Q: How can direct bookings and branding benefit RV parks and glamping properties?

Direct bookings and branding provide opportunities for greater control and diversification. By building a strong brand identity and establishing direct booking channels, property owners can reduce reliance on third-party platforms like Airbnb. Direct bookings allow owners to avoid service fees and maintain a direct relationship with their guests. Creating a branded portfolio, with each property having its own unique identity, can increase market visibility and customer loyalty. However, it requires careful marketing strategies, effective website development, and user-friendly booking processes.

Q: What are the key considerations when acquiring an RV park or glamping property?

When acquiring an RV park or glamping property, it is crucial to conduct thorough due diligence. Considerations include zoning and permitting requirements, property condition, utility infrastructure, locality factors (e.g., tourist demand, competition, and seasonality), financial projections, existing revenue streams, potential for value-added improvements, and staffing options. Ensuring the property aligns with your investment goals and conducting detailed financial analysis are essential steps in making an informed decision. Additionally, partnering with industry professionals, such as real estate agents, attorneys, and consultants, can provide valuable guidance throughout the acquisition process.

Summary & Key Takeaways

• Zoning and permitting are crucial when investing in RV parks and glamping properties.

• Utilities and amenities, such as pools and laundry rooms, can significantly impact revenue and property value.

• RV parks offer multiple streams of income, including site rentals, additional services, and on-site stores.

• Work campers are a valuable resource for staffing RV parks, bringing unique skills and experiences.

• Glamping properties present opportunities for cash flow and appreciation, but careful consideration of location, amenities, and licensing is necessary.

• Direct bookings and creating a branded portfolio can help diversify income sources and protect against changes in market platforms.