Investing in an RV park can be a solid opportunity—if you know what to look out for. Some deal-breakers aren't obvious at first glance, but failing to spot them early can turn an otherwise promising property into a financial headache. Here are the hidden pitfalls that can derail your investment and how to catch them before it's too late.
Permit Issues
- No Operating Permit
An RV park without proper permits is just land with utilities. Never assume that a park's long-standing operation means it's legally approved. Some properties function without the required permits simply because local authorities haven't enforced regulations—yet. Request a Certificate of Zoning from the relevant city, county, or state office to confirm the property's status. If it's classified as illegal, walk away. - Fewer Permitted Lots Than Advertised
Just because a seller claims a park has 120 rentable spaces doesn't mean they're all legally approved. If the zoning certificate only allows for 100, those extra lots could be unpermitted. If the numbers don't match, either renegotiate the price or have the seller resolve the discrepancy before moving forward.
Utility Failures
Water and Sewer Compliance
Safe drinking water and proper sewage disposal are non-negotiable. Some parks rely on private wells or septic systems, which require extra scrutiny. Ensure all systems meet environmental standards, and have them professionally inspected before committing.
Electrical System Integrity
RV parks need reliable electricity for everything from air conditioning to basic appliances. Faulty wiring or outdated infrastructure can lead to expensive repairs and safety risks. Verify that the electrical system is up to code and fully operational.
Facility and Market Risks
- Outdated Amenities
Swimming pools and other amenities may seem like a bonus, but if they're not up to code, they can become liabilities. Ensure all amenities comply with current health and safety regulations before assuming they add value to the park. - Declining Market Conditions
Even a well-run RV park won't thrive in a struggling area. Research local economic trends, employment rates, and infrastructure developments. A conversation with the local chamber of commerce can provide insight into whether the area is growing or stagnating.
Road and Land Challenges
- Upcoming Road Projects
A park may have great visibility and access today, but planned highway expansions or re-routes could change that. Check with state transportation departments for any future projects that might impact accessibility. - Land Survey Discrepancies
It's not uncommon to find that part of a park sits on someone else's property. A thorough survey will confirm that the land boundaries match legal records. Don't assume—verify.
Legal and Environmental Red Flags
- Environmental Concerns
A Phase I Environmental Report assesses whether past contamination could lead to costly cleanup obligations. If the report reveals environmental hazards, reconsider the purchase. - Title Ownership Issues
Some properties come with unclear ownership histories, unresolved heirship claims, or missing documentation. A thorough title search ensures you're buying a legally transferable asset. If there's any doubt about the title, don't close the deal until it's resolved.
Final Thought
Discovering deal-breakers after closing can be disastrous, but uncovering them beforehand saves time, money, and stress. Proper due diligence is the key to avoiding costly surprises and making a smart investment in the RV park industry.