OPTIMIZING LONG-TERM STAYS AT YOUR RV PARK: A STRATEGIC APPROACH FOR OWNERS By Frank Rolfe
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Owning an RV park often starts with a simple expectation: guests will check in for a short stay and move on shortly thereafter. However, the reality is that many RV owners have diverse needs that can extend their stays significantly. These can range from temporary relocations for work projects to seasonal migrations to avoid harsh winters. Understanding and adapting to these varied customer needs is crucial for maximizing both your revenue and customer satisfaction.
Understanding Your Customers' Needs
Guests may choose to stay at your park for several reasons:
- Project-based relocations: Individuals temporarily relocating for work, such as construction projects.
- Health-related stays: Those staying close to medical facilities for procedures and recovery.
- Seasonal residents: "Snowbirds" escaping cold weather or guests who prefer to stay put during their vacation.
- Permanent residents: Some use their RV as their primary residence.
These extended stays present a unique opportunity to offer tailored pricing packages that appeal to both short-term and long-term guests.
Pricing Strategies for Extended Stays
While a nightly rate of $20 might initially seem profitable, it can be less appealing for guests considering longer stays, especially when compared to local monthly lot rents, which might be as low as $150. Here’s how you can structure your pricing to be competitive yet fair:
- Research local rates: Understand what nearby mobile home and RV parks charge for monthly stays. This helps in setting a competitive price while ensuring your park remains an attractive option.
- Offer comparable rates to mobile homes: If your park includes mobile home lots, extend similar monthly rates to RVs, provided they commit to a month-long stay and manage their utilities, mirroring the expectations of a mobile home tenant.
- Highlight additional perks: If your park offers exclusive features like lake frontage, consider a slightly higher rate that reflects these premium options. Make sure to clarify what’s included in the price, like utilities, to ensure guests are making an informed comparison.
Selling the Monthly Rate
Transitioning guests from daily to monthly rates can significantly increase their savings. For example, shifting from a $20 daily rate to a $200 monthly rate can save a guest around $400 per month, even after considering utility costs. Emphasize these savings to persuade guests that a longer stay offers not just convenience but also substantial financial benefits.
Managing Lot Availability
It’s crucial to keep your most desirable lots open for short-term, overnight guests. These spots attract new customers and help maintain a dynamic and lively park atmosphere. Inform long-term guests that certain premium lots are reserved exclusively for short-term visitors to ensure that you don’t miss out on potential new arrivals.
Benefits of Long-Term Guests
Welcoming monthly tenants offers several advantages:
- Stable cash flow: Consistent monthly payments can be more reliable than the fluctuating daily income.
- Reduced maintenance issues: Longer stays reduce the frequency of move-ins and move-outs, which are often when most damage occurs.
- Lower turnover rates: Satisfied long-term guests are less likely to move frequently, especially if they’ve customized their space or upgraded their utilities to better suit long-term living.
By strategically managing your RV park to accommodate both short and long-term guests effectively, you not only enhance your business’s financial health but also create a welcoming community for all your guests. Remember, making your park the best choice for all types of RV owners is a surefire way to keep your occupancy high and your community vibrant.
By Frank Rolfe
Frank Rolfe has been an active investor in RV parks for nearly two decades. As a result of his large collection of RV and mobile home parks, he has amassed a virtual reference book of knowledge on what makes for a successful RV park investment, as well as the potential pitfalls that destroy many investors.