Starting an RV park is a rewarding venture that combines a passion for hospitality and land management with sharp business savvy. The industry is worth billions, fueled by steady demand from a diverse crowd, including vacationing families, retirees, and digital nomads.
This guide will take you through the practical steps of selecting the right location, securing funding, obtaining necessary permits, and designing your park layout to help you launch a successful rv park business in the U.S.
Step 1: Plan your business and validate your idea
Begin by researching your target market. Contact local tourism boards for visitor statistics and consult reports from the National Association of RV Parks and Campgrounds (ARVC). A frequent oversight is to misjudge seasonal demand, so analyze data for the full year.
Analyze your competition
Identify competitors by searching your target area on Google Maps. Then, examine their offerings, pricing, and guest reviews on platforms like Campendium and The Dyrt. This gives you a clear picture of market rates and service gaps you can fill.
Estimate your startup costs
A solid financial plan is your foundation. While costs vary by location, mapping out your budget early is a smart move. Expect to allocate funds across several major categories to get a realistic financial picture.
Typical startup costs can include:
- Land Acquisition: $50,000 to over $500,000
- Site Development: $15,000 - $25,000 per site for pads and utility hookups
- Buildings & Amenities: $100,000 - $300,000 for an office, restrooms, and laundry
- Permits & Fees: $10,000 - $50,000
When you budget for site development, remember that unexpected groundwork or remote utility connections can increase expenses. It is wise to include a contingency fund of 15-20% for such surprises.
Here are 3 immediate steps to take:
- Pull visitor data from the tourism boards for two to three potential counties.
- Create a spreadsheet of five local competitors, listing their nightly rates and amenities.
- Draft a preliminary budget that outlines your estimated costs for land and per-site development.
Step 2: Secure your legal structure and licenses
Choose your business entity
Most RV park owners form a Limited Liability Company (LLC). This structure protects your personal assets from business debts and offers pass-through taxation, which simplifies paperwork compared to a corporation. You might want to consult a lawyer to ensure it is the right fit for you.
Navigate permits and regulations
The permitting process is often the longest part of your pre-launch phase. A frequent misstep is underestimating these timelines, so you should budget 6 to 12 months for full approval. Start by contacting your county’s planning and zoning department for their specific requirements.
You will likely need several key permits. Each comes with its own application, fees, and inspection schedule.
- Zoning or Land Use Permit: Confirms your land is approved for commercial use. This can take 3-6 months and cost $1,000 to $10,000+.
- Health Department Permit: Covers septic systems and well water. Expect a 2-4 month process with fees from $500 to $2,500.
- Building Permits: Required for any new structures like offices or bathhouses. Costs vary based on project size.
Your local health department and the Environmental Protection Agency (EPA) set the rules for water and sewer management, so get familiar with their guidelines early.
Here are 3 immediate steps to take:
- Consult a business lawyer to file the paperwork for your LLC.
- Request a pre-application meeting with your local planning department.
- Create a timeline that maps out each permit application and its estimated processing time.
Step 3: Protect your park with the right insurance
With your legal structure in place, the next move is to secure insurance. A comprehensive policy protects your investment from the unique risks of running an RV park. You will need a few different types of coverage to be fully protected.
Your insurance portfolio should include:
- General Liability: Plan for at least $1 million per occurrence. Annual premiums often range from $2,500 to $7,500, depending on your park’s size and amenities.
- Property Insurance: This covers your buildings, equipment, and other physical assets from events like fire or theft.
- Workers’ Compensation: If you have employees, this is a state requirement that covers medical costs and lost wages from on-the-job injuries.
- Commercial Auto: This is for any vehicles your business owns, such as maintenance trucks or golf carts.
New owners sometimes overlook risks tied to specific amenities. Guest injuries at a playground or pool and vehicle damage from falling tree limbs are frequent claims. Make sure your policy explicitly covers these scenarios.
You might want to work with an agent who knows the recreation industry. Consider getting quotes from providers like CBIZ, Leavitt Recreation & Hospitality, or Marshall & Sterling. They understand the nuances of RV park operations and can find appropriate coverage.
Here are 3 immediate steps to take:
- Request quotes from two to three insurance agents who specialize in RV parks.
- List all your planned amenities and discuss the specific risks with your agent.
- Ask about bundling policies, such as general liability and property, for a potential discount.
Step 4: Select your location and equipment
Aim for a parcel of at least five acres, which can typically accommodate 50 sites. The land must have commercial or recreational zoning. Confirm this with the county planning department before you make any commitments. A frequent mistake is to fall for a great price on land that cannot be zoned for your purpose.
If you plan to lease, negotiate a term of at least 10 years with multiple renewal options. You might also want to include a "right of first refusal" clause. This gives you the first opportunity to buy the property if the owner decides to sell.
Purchase your park equipment
With your site secured, it is time to outfit it. Budget for commercial-grade equipment, as residential items will not last. It is a common misstep to underestimate wear and tear from constant guest use. Look to suppliers like Belson Outdoors or Jamestown Advanced Products for durable gear.
Here are some typical costs for key items:
- Utility Pedestals: $500 - $1,500 per site
- Commercial Picnic Tables: $300 - $600 each
- Steel Fire Rings: $100 - $300 each
- Zero-Turn Mower: $8,000 - $15,000
Here are 3 immediate steps to take:
- Identify two to three land parcels that meet zoning requirements.
- Ask a lawyer to review your lease and add a "right of first refusal" clause.
- Get quotes for 50 utility pedestals and picnic tables from a commercial supplier.
Step 5: Set up your payment system
Most guests expect to pay with a credit card, especially for nightly or weekly stays. You will also need a system for deposits to secure reservations. A frequent mistake is choosing a payment processor with high fees or a clunky interface that frustrates guests during online booking.
Choose your payment processor
Look for a solution with transparent pricing. Many providers charge 2.5% to 3.5% per transaction plus monthly fees. For RV parks that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for walk-in guests or selling items like firewood at the campsite. Getting started is straightforward.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done, with no waiting for bank transfers.
Here are 3 immediate steps to take:
- Decide on your deposit policy for nightly, weekly, and monthly reservations.
- Compare the fee structures of two online reservation systems that integrate payment processing.
- Download the JIM app to see how it works for on-the-go sales.
Step 6: Secure your funding and manage finances
Find the right loan
Many RV park loans come from the Small Business Administration (SBA). The SBA 7(a) loan program is popular, offering up to $5 million. Lenders typically want a 20-30% down payment and a detailed business plan. Interest rates often float around Prime + 2.75%.
If your park is in a rural area, you might qualify for a USDA Business & Industry Loan. These government-backed loans encourage rural development. You could also approach local banks, especially if you have a strong financial history and community ties.
Calculate your working capital
One thing new owners often miscalculate is working capital. You will need funds to cover the first six months of operations before revenue stabilizes. This includes payroll, utilities, insurance, and marketing. A good baseline is $50,000 to $100,000, depending on your park’s size.
Here are 3 immediate steps to take:
- Contact an SBA-preferred lender to discuss the 7(a) loan application process.
- Calculate your estimated operating expenses for six months to determine your working capital needs.
- Check your property’s eligibility for a USDA Rural Development loan if it is in a qualifying area.
Step 7: Staff your park and set up operations
Your park’s success depends on your team. For a 50-site park, you will likely need a full-time Park Manager and at least one Maintenance person. Many owners also use work-campers for front desk and grounds support, trading a free site for about 15-20 hours of work per week.
Define your team roles
A Park Manager handles daily operations, guest relations, and finances. Their salary typically ranges from $45,000 to $65,000. Your Maintenance staff will manage groundskeeping and utility repairs, earning around $18 to $25 per hour.
New owners often underestimate staffing needs during the high season, which can hurt guest reviews. A good financial benchmark is to keep your total payroll between 20% and 30% of your gross revenue. This helps you scale your team without overspending.
If your park has a pool, your manager or a dedicated staff member will need a Certified Pool Operator (CPO) license. It is also a good idea for key staff to have First Aid and CPR training. For operations, reservation software like Campspot or ResNexus can streamline bookings and site management.
Here are 3 immediate steps to take:
- Draft job descriptions for a Park Manager and a Maintenance position.
- Research work-camper arrangements on sites like Workamper News.
- Request demos from two reservation software systems like Campspot or ResNexus.
Step 8: Market your park and attract guests
Establish your online footprint
Your website is your digital storefront. It needs professional photos and a direct booking button. Many new owners use low-resolution phone pictures, which can make a park look unprofessional and deter guests before they even consider a visit.
Next, list your park on directories like The Dyrt, Campendium, and Hipcamp. These platforms are where many RVers plan their trips. A strong profile with plenty of positive reviews can drive significant traffic your way.
Engage with your community
Use social media, particularly Facebook and Instagram, to show off your park. Post images of happy campers, scenic views, and new upgrades. You can also run targeted ads to users interested in RV travel within a specific geographic radius.
A good website booking conversion rate to aim for is 2-4%. Also, track your Customer Acquisition Cost (CAC). In the travel sector, a CAC between $50 and $150 per booking is common, so use that as a benchmark.
Here are 3 immediate steps to take:
- Create profiles on The Dyrt and Campendium with at least 10 high-quality photos.
- Set up a Facebook Business Page and schedule your first three posts.
- Install Google Analytics on your website to start tracking your booking conversion rate.
Step 9: Set your pricing and profit margins
Your pricing strategy directly impacts your park’s profitability. A healthy gross profit margin for an RV park often lands between 30% and 50% after you cover operating expenses. This gives you a solid target to aim for as you build your rate sheet.
Choose your pricing model
Most successful parks use dynamic pricing. This means you adjust rates based on demand, with higher prices for holidays and weekends. A common mistake is to set one flat rate for the entire year, which leaves money on the table during peak season.
Consider a tiered structure based on site amenities:
- Standard Sites: $45 - $75 per night (water/electric)
- Premium Sites: $80 - $120 per night (full hookups, prime location)
- Monthly Stays: $600 - $900 plus metered electricity
To set your own rates, analyze competitors on Campendium and The Dyrt. Look at their pricing for weekends, holidays, and the off-season. This gives you a clear picture of the market and helps you position your park competitively from day one.
Here are 3 immediate steps to take:
- Analyze the high and low season rates for five local competitors.
- Create a tiered rate sheet for your standard, premium, and monthly sites.
- Calculate your break-even cost per site based on your monthly operating expenses.
Step 10: Maintain quality and scale your park
Once your park is operational, your focus shifts to consistent quality and smart growth. Track guest satisfaction by monitoring your reviews on The Dyrt and Campendium. You should aim for an average rating of 4.5 stars or higher, as this is your most important quality metric.
Measure performance and plan growth
Look at your key performance indicators (KPIs) to decide when to expand. Many owners make the mistake of expanding based on peak season numbers alone. Instead, watch your shoulder-season occupancy. If it stays above 85% for two consecutive seasons, it is a strong signal to add more sites.
Your payroll is another key indicator. When your total payroll costs consistently exceed 30% of gross revenue, it might be time to hire more staff to maintain service quality. You can also use the advanced analytics in software like Campspot or ResNexus to better track these trends.
Here are 3 immediate steps to take:
- Calculate your average guest rating from the last 30 reviews on Campendium.
- Analyze your occupancy reports from the last six months to find your shoulder-season average.
- Review your payroll-to-revenue ratio to see if it aligns with the 20-30% benchmark.
You are not just developing land; you are building a destination for travelers. The small details of the guest experience often make the biggest difference. With a clear plan in hand, you are well-equipped to turn your vision into a thriving park.
As you manage daily operations, a simple payment solution helps. JIM turns your phone into a card reader for on-site sales, with a flat 1.99% fee and no extra hardware. Download JIM to get started.
