Benefits of organizing under RV statutes vs mobile home park statutes

3 Replies

Can anyone give me any information on why it is better to organize our park as an RV park vs a mobile home park?  We have spaces for both, ratio 150 RV spots to 400 mobile home spots.  Thanks

Mobile home parks are always more valuable than a comparable RV park.  Recreational Vehicles have engines in them.  That means your cash flow drives off.  

Mobile homes are not actually that mobile.  Best industry estimates are that mobile homes stay in parks for 40+ years.  Your cash flow stays if it is tied-down to the land with permanent utility connections.



In California it depends an a few variables. Under the California Housing and Community Development Department's (HCD) Mobilehome Park Residency Law's relocation requirements it's very difficult to change the venue once it has been cast in stone. 

Adittionally, eviction is very challenging at best and should the owner or perspective buyer of a MH park ever want to rezone it it could and usually does take years if not decades to achieve not to mention the added cost of legal fees to do so and the relocation or purchasing at fair market value of all the homes from the existing tenant/resident/owners.

To me an RV park is a lot less complcated and doens't have all the resident protection parameters and considerations that a MH Park does. Plus there are no rent control issues to deal with and frankly having been involved with each over the years I find RV parks a little easier to manage. Just my 3 cents worth (adjusted for inflation) LOL!

You'll also need to research the exact municipal codes for your area.  Municode dot com is a great place to start.  You can also make some anonymous inquiries to your local zoning and code officials as they will let you know right away how friendly the local authorities are to each type of venture.  Those codes will also give you the exact spacing requirements, lighting, setbacks, etc.  Some RV Parks/campgrounds will also require you to have separate shower and bathroom facilities as opposed to MHPs.

Parks, whether RV or MHP, eventually take on the personality of the owner.  So decide on your business model and hire the right staff to carry it out.  

Is the park on public and water/sewer or septic and well?  That could limit your ability to have additional revenue streams for a washateria and vending. 

And what about your neighbors?  Neighbors can make things very difficult; from blocking development to constantly reporting anything they suspect as a potential code violation to noise complaints.  

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here