When looking at marinas, potential buyers often determine the likely profitability by focusing on slip revenue. Slips offer a steady income stream and require minimal day-to-day expenses. The downside of slips is that there is little way to generate more income outside of raising rates. Regulations frequently prevent the expansion of slips, so once the marina basin is maxed out, there’s no place to add more.
As we’ve noted before, if you’re thinking of selling your marina, it pays to maximize profit or at least be able to show plans for expanded revenue streams to potential buyers. If you have abundant upland, it may be time to consider using it for an RV park. Where once upland was used for storage and do-it yourselfers, today those swaths of grass are eyed for RV parking. Boats and RVs are a natural match with both encompassing storage and hospitality. Bringing the two together can be highly profitable.
Is An RV Park Feasible?
Whether you want to begin hosting RVs now or prefer to show it as a future option for buyers, there are a host of factors to consider to ensure the project is feasible, sustainable, and legal.
Start with the basics. Make sure there are adequate access roads and parking spaces for RVs, including maneuvering space and emergency vehicle access. A large upland without an access road to accommodate an RV won’t work. Look at the available land and determine how many RV spaces it can hold. Plan the layout of RV sites to maximize comfort and accessibility, while ensuring privacy and adequate space between vehicles. Keep in mind you want enough spaces to cover initial and ongoing costs and still have a profit.
If the upland is large enough to meet your costs, the logical next step is to research zoning laws to determine if an RV park is legal and if you will need special permits or variances, both of which can take a long time to receive. Along with zoning laws, there may be environmental regulations related to water use, pollution control, and shoreline preservation that will have to be adhered to. If plans include buildings for restrooms, laundry, offices, or lounge areas, ensure compliance with local building codes as well.
While your RV park plan may be legal, it still may not conform to the wishes of your boaters and local residents. Share your ideas early and often to ensure an RV park aligns with the community’s needs and concerns. You may think your boaters will see an RV park as an amenity, they may see it overcrowding their quiet waterfront escape. Nearby residents might also be wary of caravans of RVs rolling down their street. Get input on your project early and often.
If you are planning to sell your marina, here might be a good place to stop your quest for an RV park. Potential buyers who can see proof that an RV park is legal, especially if permits are in hand, may be willing to pay more for the property. If your view to sell is longer term and you want to open and operate the RV park, read on.
Put the Plan to Action
Do you know if RVers frequent your area or have a reason to visit? According to a study by Step by Step Business, the RV industry is growing fastest in California, Texas, and Florida, conveniently three of the top boating states. Research your local market demand for RV parking, making sure to look at any nearby competition. Understand whether your customers will be your boaters, weekend visitors, or long-term leasers. Similar to a marina, an RV park can be structured for annual, seasonal, or transient customers. Seasonal bookings offer a known income, but you can charge more for short-term visits. A break-even analysis should show the number of transient days needed to match the income from a longer contract.
With knowledge of your market, you can tailor the park’s amenities to meet customer needs. Determine what will make your RV park stand out against others—a waterfront location may be what makes your
facility unique. Although many RVs have all the amenities of home and are self-contained, RVers look for sites that offer clean water and sewage disposal. Electrical connections are also preferred. Explore whether existing utilities at the marina can be expanded or if new infrastructure will be required. The more you offer, the more visitors will be willing to spend. This extends to added amenities like pools, putting greens, dog parks, and playgrounds. Can the RV park users share marina amenities or will you need to add more?
While it may seem simple to transform open land into an RV park there are a variety of development costs to consider:
Landscaping: Clearing and leveling to create solid base for RV parking is often necessary. The landscape should also minimize erosion, enhance aesthetics, and provide privacy for RV sites.
Safety and security: Fire lanes, extinguishers, lighting, fencing, and cameras should are factors in your development costs. Preventing theft and vandalism is a critical piece to a successful operation.
Waste Management: A nearby restroom and/or a place for RVs to pumpout holding tanks will be required. Ensure anything you already have in place, such as a septic system can handle increased waste or prepare to invest in an upgraded system.
Utilities & WiFi: Ideally you can tap into what’s already available for the marina, but at a minimum, you’ll need to extend lines. Water and electricity are essential amenities for RVs.
The development outlay can be costly, with Step by Step Business’s report citing costs between $700,000 and more than $1 million. Create a budget that includes the above as well as ongoing maintenance costs and staffing. If needed, explore financing options or partnerships, which are
particularly attractive if the marina’s existing infrastructure can be leveraged. Once constructed, an RV park requires minimal capital expenditure and operational costs. For a marina owner or potential buyer, the return on investment of creating an RV park is high making it a worthy profit center to explore.
If you’re looking to buy or sell a marina, contact the experienced team at Simply Marinas. We have worked with both buyers and sellers for decades and offer a full concierge service to help you every step of the way.
If you’d like to see how an RV park can fit into your marina operations, take a look at some of the nationwide sales we’ve conducted for marinas with RV parks:
Coconuts RV Park and Marina, MO
Four Corners Marina and RV Park, TN
Cedar Creek Marina and RV Park, TN
Whitman Hollow Marina and RV Park, TN
Hales Bar Marina and Resort, TN
Leatherwood Marina and RV Park, TN
Smugglers Cove Marina and RV Park, KY
Wisdom Dock Marina and Resort, KY
Highlands Marina and Resort, GA