What Are the Hidden Challenges of Owning and Operating an RV Park?

Question

I'm leaning towards investing in an RV park, but I want to go into it with eyes wide open.

For those of you who currently own or have previously owned RV parks, I’d love to hear your honest take on the downsides or unexpected challenges of this asset class. Specifically:

• Operational Challenges:-What day-to-day management issues caught you off guard?-Number of staff needed per X number of spaces?
• Maintenance & Infrastructure:-What are the most common or costly maintenance issues you've faced (e.g., septic systems, utilities, hookups)?-How do infrastructure issues compare to more traditional assets like mobile home parks?-Layout, close spaces or spread out for individual spaces limited privacy?
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• Tenant & Community Management:-How do you deal with difficult or short-term tenants?-Have you had issues with long-term vs. transient guests, or community culture?
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• Zoning, Licensing, and Regulations:-Have you encountered regulatory headaches (zoning, health codes, etc.) that impacted your park’s value or operations?
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• Financing & Insurance:-Did you find it harder to finance or appraise RV parks compared to other asset classes?-Cost of insurance and what are some of the major liabilities faced?
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Maintenance & Infrastructure:-What are the most common or costly maintenance issues you've faced (e.g., septic systems, utilities, hookups)?-How do infrastructure issues compare to more traditional assets like mobile home parks?-Layout, close spaces or spread out for individual spaces limited privacy?

Tenant & Community Management:-How do you deal with difficult or short-term tenants?-Have you had issues with long-term vs. transient guests, or community culture?

Zoning, Licensing, and Regulations:-Have you encountered regulatory headaches (zoning, health codes, etc.) that impacted your park’s value or operations?

Financing & Insurance:-Did you find it harder to finance or appraise RV parks compared to other asset classes?-Cost of insurance and what are some of the major liabilities faced?

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Any other less obvious drawbacks—or even lessons learned the hard way—would be appreciated.

Thanks in advance to anyone willing to share their experience!

Armando Carrera · Answer

Hey Derek,

I dont own an RV park but am a sales manager for 3 parks in the Phoenix metro area. I cannot speak for many for of the questions above but can provide the following.

Our owner has grown from 1 RV park to 17(?) across the country. Basically his model is having a large RV community (min 30 acres) and slowly convert those sites to manufactured home sites to create ("sticky" in his words) monthly income. The largest community is 325 acres, has a golf course, banquet hall, pool, fitness center and other amenities. What it cost to run this place I have no clue, but our sites (not RV) run from $700-1000/month. RV sites, at least here in AZ, is seasonal so converting RV sites to permanent monthly income is two fold. Guaranteed monthly income from the resident but also boosts the value of the property (in case you want to refi/get a loan in the future)....

Let me know if youd want to dive into that type of discussion

Lauren Robins · Answer

I've been a lawyer for a decade, my answers are either going to be way too long and filled with as much background info as possible or quick and to the point.

Michael Baum · Answer

@Lauren Robins., your posts read like an AI bot wrote these. Operational Intensity?

Just curious.

Andrew Steffens · Answer

what is attracting you to this?  There is something for everybody but I think there are easier things to invest in.

Derek Layton · Answer

HI Andrew, Great question! What’s attracting me is the combination of cash flow potential, land ownership, and the growing trend of domestic travel and mobile lifestyles. I know it’s not the easiest asset class, but I’m drawn to the idea of owning something tangible with multiple income levers (short-term, long-term, possible value-adds like cabins or amenities).I would think that every RE investment would have it's challenges. What types do you prefer? Multi-Family, Air BNB, other? What's easier about them?  That said, I’m definitely still in research mode and open to hearing why others think it may not be worth the headache and also, other recommendations. Thanks!

Derek Layton · Answer

Totally get where you're coming from... some RV parks, especially older or poorly managed ones, can definitely feel rough. I’ve seen everything from rundown lots to resort-style communities with pools, clubhouses, and high nightly rates. Management, amenities, and location really make all the difference.

John Underwood · Answer

Got to be a worse crowd than a MH park.

I visited someone living in a RV park once to pickup something and it was rough.

Lauren Robins · Answer

Hi Derek.

You're right to approach RV park investing with eyes wide open—it’s a unique asset class with strong potential but also a specific set of operational and regulatory complexities. Many investors are drawn to RV parks because of the attractive cash flow, low tenant permanence, and the growth in domestic travel. However, experienced owners often report a steep learning curve, especially in areas that differ significantly from traditional residential or commercial real estate.One of the first things that catches new owners off guard is the day-to-day operational intensity. Even if you have a property manager, you'll likely deal with constant communication about bookings, hookups, Wi-Fi issues, and check-ins. Without automated systems in place, managing an RV park can quickly become a part-time job. The number of staff needed typically depends on the size and amenities of the park, but as a rule of thumb, you'll want at least one full-time manager or an on-site couple for every 80 to 120 sites. If the park includes extras like bathhouses, laundry, or a store, your staffing needs increase accordingly.Infrastructure and maintenance are another big challenge. The most frequent and expensive issues include failing septic systems, outdated electrical infrastructure (especially 30-amp service that can’t support modern RVs), and inconsistent water pressure. In older parks, electrical upgrades alone can cost tens of thousands of dollars. Compared to mobile home parks, RV parks generally experience more wear and tear because of the constant movement of vehicles and guests. Mobile homes stay put, while RVs bring in heavier loads on roads and hookups. Gravel roads need constant grading, and pads must be level and reinforced. When it comes to layout, closely spaced lots can maximize revenue per acre but may lead to privacy complaints and more tenant conflicts. Many operators find that grouping daily, weekly, and monthly tenants in separate areas works best for maintaining a healthy community.Managing tenants in an RV park comes with its own quirks. Short-term guests may violate rules, arrive late, make noise, or leave a mess, while long-term tenants can introduce residential-level challenges—like hoarding or attempting to live without paying for extended periods. Clear rules, regular enforcement, and separation of transient and long-term guests help maintain order. Some park owners implement tiered pricing and even install cameras or access gates to reduce problem behavior and enhance security.Zoning and regulatory issues can also present major roadblocks, especially if you’re buying in a jurisdiction unfamiliar with or unsupportive of RV parks. In some areas, each RV pad must be permitted separately, or you may run into restrictions on how long guests can stay. If you add alternative lodging like cabins or tiny homes, you may need additional licenses or fall under different STR (short-term rental) regulations. Health departments can also be strict about septic systems, water quality, and sanitation facilities. One common and expensive mistake is failing to verify zoning and permitted uses with the county planning office directly. Even if the current owner is operating without issue, that doesn't mean you're grandfathered in—or compliant.Financing and insurance are often trickier than with other asset classes. Many banks see RV parks as hospitality businesses rather than real estate, which means fewer options for traditional financing. Some owners use local lenders or credit unions, while others rely on seller financing or bridge loans. Appraisals can be unreliable due to a lack of local comps, especially if the park is in a seasonal or rural area. Insurance, meanwhile, tends to be more expensive than for mobile home parks due to higher liability risks—fires from faulty hookups, slips and falls, dog bites, or sewer backups are just a few of the exposures you need to insure against. Properties in flood zones or fire-prone areas are especially difficult to cover.Lastly, there are several lessons that many RV park owners learn the hard way. Reliable Wi-Fi is a must-have—even if you state it's not provided, guests will expect it. An on-site manager or host, especially a retiree couple in exchange for free rent, can dramatically reduce your management burden. Seasonality also plays a huge role in revenue; in some regions, a park may earn 80–90% of its annual income in just four or five months. Don’t underestimate how competition can impact you either—a nearby park with newer amenities or better pricing can quickly siphon demand away. Ongoing capital expenditures are necessary to remain competitive, especially as guest expectations evolve.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

What Are the Hidden Challenges of Owning and Operating an RV Park?

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