How much does it cost to build an RV park?
This is one question that has been asked many times. Luckily for you, we have the answers. You’ll have to stick around to find out the average campground costs.
Are you thinking of building an RV park? The financials are a significant consideration when starting. Plus, this can be substantial depending on various factors, including size.
Cost to Build an RV Park
In this guide, critical areas of costing have been discussed, including buying an existing RV park vs. building one. We’ve also discussed the size of the RV park and its impact on cost.
Access roads or driveways connecting the RV park, recurring or running costs, septic systems vs sewage removal, water, wiring your RV site, and other cost implications have been covered.
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Cost of Buying an Existing RV Park Vs. Building One
In working out the cost of building an RV park, the first consideration you’ll have to make is deciding whether to buy an existing RV park or build one from scratch.
Existing parks come with several cost advantages, including the fact that they’re functional and allow you to start doing business immediately.
However, knowing the condition of the facility is crucial for maintenance purposes.
Existing RV parks, especially those in destination areas, cost much more as prices can go as high as $8,000,000 or higher.
The truth is some of these parks are overpriced, with prices set based on the perceived value of the property rather than the revenue the business fetches or generates.
Despite this fact, buying an existing RV park is cheaper than building one.
In building an RV park, you’re looking at virgin territory with all the work to be done by you. Of course, this is a challenging undertaking you’ll have to be prepared for.
While many variables are involved, a rough figure will be anywhere from $3,000,000 to $15,000,000. Recall the $8,000,000 mentioned earlier was the average for an existing RV park in a destination area.
Your needs will determine your approach, whether you go for an existing RV park or build one from scratch. Several considerations determine the steps taken.
If you wish to start an RV park but have no plan to be involved in building one, you might want to buy an existing park.
Also, if you wish to start doing business right away, buying over an existing RV camp will make that possible. However, underlying factors may negatively impact your operations, especially if you have zero experience with how certain things are done.
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The Size of Your RV Park will Determine its Cost.
Part of the decision you’ll have to make is the size of your RV park—the acreage of the location counts. Ordinarily, buying a more extensive area will attract more cost.
Also, costs will differ from one state to the next. If the land is within a destination area, expect much higher costs than those that aren’t. Before deciding on the land to purchase, you need to do the following;
First, determine how many RV sites will fit on the land.
Secondly, while calculating such, you’ll have to leave space for a front office and a leach field for septic tanks (if you want septic systems installed).
To get things right, you’ll have to involve an expert. A contractor assesses your needs and advises on the best action plan.
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Access Roads or Driveways Connecting the Park
Your RV park needs to be connected to access roads.
Constructing asphalt driveways will attract an average cost of $7 to $13 per square foot. Current crude oil prices will play a role in determining actual expenses.
However, other cheaper ways of connecting your park include grading the area into a motorable dirt road. Things become much more manageable when your park isn’t far from the main road.
Some RV parks require no extra work to be done by providing access roads or driveways. This saves you a lot in cost. Plus, total expenses are significantly lowered.
RV Recurring or Running Costs
Every business has running costs, and so do RV parks.
These expenses you’ll incur on an ongoing basis include the cost of campground insurance, garbage removal, staff wages, and lawn mowing.
There are several others not included here. It would be best if you were prepared by setting aside an amount from your startup costs to cover all such expenses.
That way, you get to avoid any surprises.
Cost of RV Septic System Installation Vs. Sewage Removal
Most RV parks aren’t within range of a city’s sewer system. Thus, to function effectively, an independent system must be provided. This is where septic system installation comes into play.
Now, the size of your park will determine the cost of septic system installation. When installing one, expect around $10,000 for septic tank and drain field installation.
Prices go up when multiple systems are installed. We must also add that the costs mentioned exclude labor and piping. To have a total cost breakdown, call a plumbing service to assess your waste treatment needs.
A more detailed quote is given.
If you want a cheaper option, you can opt for sewage removal. This is a system where a dump station is built for visitors to use periodically when leaving your park.
This saves a lot in expenses and allows for more effective waste management.
Cost of Providing Water to RV Parks
One of the vital things to have in your RV park is sufficient and clean water. A well must be drilled for RV parks that are remotely located. This will attract anywhere from $15 to $30 per foot.
Some areas will require more drilling than others due to the water table. So, you’ll have to listen to expert advice on the cost implications. Piping work needs to be installed, too.
This will attract additional expenses.
Cost of Building a Camp Store
Still, on the cost of building an RV park, you may wish to build a camp store on the property.
This also attracts significant costs, which its size will determine. On average, this will cost you around $100,000. You need to consult your contractor to discuss things in detail.
The cost of building an RV park is quite varied.
Despite providing some figures, an expert or contractor will do a more detailed job. We recommend directing all your inquiries to such professionals as they’re experts in the field and would know better.