Mobile homes/ statics. Anyone own their own?

[Skribble]

Thought I would try this here too.

Wondered if any MNetters own there own caravans on sites and rent them out as a business too. Is it a viable business or just OK to help with site fees to help with your own holidays? Is it too much hassle or does it tick over nicely? Long term I want to rent out cottages but budget can't quite stretch to that yet .

Want to get something local so it willbe easier to deal with cleaning and changeovers.

[Skribble]

Bump for daytime folk

[AntEater]

Hi scribble,

imo its not a viable stand alone business. If the park where it is, permits sub-letting (and many do not), you would perhaps achieve 50% occcupancy.

The more its used the more it wears, after all caravans are only designed for holiday use.

Add to the cleaning the cost of repairs and the cost of a replacement hire van etc and the figures do not stack up.

Letting defo only help with costs, not achieve profit.

[Skribble]

Is 50% occupancy a good average? Where do you get that figure? I am not looking to make loads just a little. I would be doing the cleaning and most repairs or family would. The depreciation of the van itself is a worry though. The two parks I am considering do allow subletting and will even let your van for you, but don't want to do that. The Hevn park is a big one and does lots of out of season events so I was hoping for a longer season of lets.

[AntEater]

50% is all I would base my figures for a new venture.
I have let holiday caravans for many years. Pulled out last year, number of reasons.. but if there was money to be made I would still be doing it!

Remember that when you buy a new static on a park, the park gets a large cut of the action.. therefore on day 1 your van is worth 30% less than you paid for it.. Thats all of your first and possibly second years letting profit!

[Skribble]

Thanks anteater, what kind of park were you letting on? Was it the big all action one or a smaller private one?

[AntEater]

small and private!

[Skribble]

That was quick , did you find it a struggle to market and get customers or is there just a limit to the number of weeks that sell well. I was hoping for a long season with lots of weekends because the park is big and has very popular weekends out of the main season.

[AntEater]

Used to let 34 weeks a year, 25 weeks occupancy would be good. Weekends are rubbish lets, same cleaning for 2 nights let, also usually more mess after 2 days than 7.
Winter lets = high gas and electric bills and condensation..
Good luck if you give it a go tho, dont want to be Mr Doom

[Skribble]

Don't worry Mr Dooms are a lot more help than "oh that sounds good go for its". 34 weeks sounds good though, I just want to do something really and as long as I don't make a loss and cover costs at first that is OK, but a profit would be nice. What are the hidden costs that most of those new to statics on sites won't have considered? Sorry loads of Q's, but if you don't ask you will never know .

[AntEater]

Hi,
34 weeks would be the number of weeks available to let.(March to Nov) 25 would be the number actually let. For a new start up I would say 17 weeks at say 300 may be possible.
That would give you say 5100
Less site charges of say 1500
less running cost of say 1000
less tax and insurance say 1000
Leaves 2600
Van costs say £15000 plus siting
Devalues £4500 on day 1
After season 1 your asset will be worth say 8500
you will have shown a profit of say 2600
so you will be nearly 4000 in the red..!
As I said I dont see this as a stand alone business..
But if you could borrow someones van..

[Skribble]

Thanks perhaps I will just squat in someone elses .