How to buy an RV park or campground: what to check
Short answer
An RV park is a real estate-heavy hospitality business. When buying one, split revenue between long-term (monthly) sites and transient (nightly or weekly) stays, because they behave differently, then look at occupancy and rates by season, reservation data, and ancillary income (store, laundry, propane, storage). Check utilities closely: who pays electricity (submetering), water and sewer systems, and well and septic permits. Zoning, permits, flood risk and deferred infrastructure can outweigh everything else.
RV parks combine land, utilities and guest service. The best ones have strong occupancy and sound infrastructure. The worst have strong occupancy and a septic system about to fail.
Revenue by site type
| Type | Character | Verify |
|---|---|---|
| Long-term / monthly | Steady; tenant rules may apply | Leases, payment history, utilities billing |
| Seasonal | Booked by season | Contracts, deposits |
| Transient (nightly/weekly) | Rate and occupancy driven | Reservation system, occupancy by night |
| Cabins / glamping | Higher rates, more upkeep | Occupancy, maintenance |
| Ancillary | Store, laundry, propane, storage | POS, margins |
Worked example: long-term vs transient sites
Illustrative example, not a real park or market rates
A park has 100 sites. 40 are long-term at $650 a month, full all year: 40 × $650 × 12 = $312,000. 60 are transient at $55 a night. They run 80% full for a 120-night season and 30% for the other 245 nights: 60 × 0.80 × 120 × $55 = $316,800, plus 60 × 0.30 × 245 × $55 = $242,550, for $559,350. Total site revenue is $871,350. Now electricity. If long-term guests' power is included in the rent and averages $90 a site a month, that's 40 × $90 × 12 = $43,200 of cost the park carries; with submeters and pass-through billing (where state rules allow), that cost moves to the guest. Transient guests use less and pay through the nightly rate. Two parks with the same revenue can differ by tens of thousands in utility costs depending on this one setup.
Water, sewer and power: the infrastructure is the business
An RV park is a small utility. Many have their own wells, which can make the park a public water system under the Safe Drinking Water Act, with testing and reporting duties usually run by the state; ask for the classification, test results and any violations. Sewage goes to a municipal sewer, an on-site treatment plant, or septic systems, each with permits and maintenance costs. Electrical service to each site (pedestals rated for modern RVs) is a common upgrade need. Get an engineer or experienced contractor to inspect water, wastewater and electrical systems, and price what the next five years need. A park that's full but running on failing septic fields is a capital project with a business attached.
Red flags specific to RV parks
- Long-term guests who are really residents. In some places they may have tenant protections; ask a local attorney.
- Utilities included in long-term rent with no submetering.
- Permits for fewer sites than the park operates. Compare the site count on the licence with what's on the ground.
- Flood zone or wildfire exposure that drives insurance costs or limits.
- Reservation data that doesn't match deposits, or cash collected by a camp host.
- Roads, bathhouses and pools overdue for repair.
Documents to request
- Reservation system data and occupancy by month (3 years); rent roll for long-term sites.
- Tax returns, P&Ls, bank deposits; utility bills and any submetering records.
- Permits: zoning, campground licence, well and septic or sewer, health inspections.
- Title, survey, flood maps, environmental reports.
- Capital spending history and equipment list.
Worked example: what a septic failure does to the numbers
Illustrative example, not real repair costs
Using the park above, say site revenue is $871,350 and operating costs (staff, utilities, insurance, property tax, maintenance, reservations, marketing) are $560,000, leaving $311,350 before debt. An inspection finds the septic fields serving 30 transient sites are failing, and a contractor quotes $240,000 to replace them, with those sites closed for a season. Losing 30 of 60 transient sites for a year costs half the transient revenue: ($316,800 + $242,550) ÷ 2 = $279,675. Add the $240,000 repair and the year's result swings by about $520,000. That's why an engineer's inspection of water and wastewater systems belongs before the LOI, or at least as a firm condition of it.
What moves the value of an RV park
We don't value deals or publish capitalization rates or multiples we can't verify. Appraisers and lenders weigh these factors:
| Factor | Supports a higher value | Pulls it lower |
|---|---|---|
| Occupancy | High across seasons, documented | Strong only in a short peak |
| Site mix | Balanced long-term and transient | All one type with its risks |
| Infrastructure | Modern pedestals, sound water and sewer | Failing septic, old electrical |
| Utilities | Submetered where allowed | Included in rent |
| Permits | Match the sites operated | Unpermitted expansion |
| Location | Near demand drivers, low hazard exposure | Flood or fire zone, remote |
The first season under new ownership
Guests come back for the park's feel as much as its sites. Keep the camp hosts and staff who know the regulars, keep the reservation system and policies, and honor existing bookings and seasonal contracts exactly. Use the first season to measure what the seller's records didn't show: water use, electrical load at peak, and which repairs guests complain about. Plan capital work for the off-season, and price changes for the following year once you've seen a full cycle.
What a lender will check
RV parks are financed largely as real estate, through SBA 7(a) or 504 loans where eligible, or commercial mortgages. Expect an appraisal, an environmental site assessment, and a close look at occupancy by month across several years, utility costs, permits and capital needs. Lenders will verify tax returns against IRS transcripts and test debt coverage in a weak season.
Work campers and seasonal staff
Many RV parks rely on work campers: people who staff the office, clean and maintain the grounds in exchange for a free site and sometimes pay. Ask how many there are, what they do, and how they are paid. Under federal and state wage laws, someone doing work for a business is often an employee who must be paid at least minimum wage for hours worked, and a free site may not count fully toward that. Ask your attorney whether the arrangement holds up, and price the cost of paying staff properly into your plan.
Reservations as an independent record
A reservation system shows site nights booked, rates and cancellations, and card payments settle through a processor. Compare site nights and revenue from the reservation reports with deposits and the P&L, month by month. Advance bookings and deposits taken for next season are revenue the seller has collected for stays you will provide, so ask for a credit at closing.
Questions to ask the seller
- What were occupancy and rates by site type and month for three years?
- Who are the long-term guests, how long have they stayed, and what do they pay?
- How are water, sewer and electricity supplied and billed?
- When were the wells, septic or treatment systems and electrical pedestals last inspected or upgraded?
- Does the licence match the number of sites you operate?
- Any flooding, contamination or permit violations?
Ask for the park's rules and how they are enforced; long-term guests may resist changes.
Frequently asked questions
Are long-term RV sites good revenue?
They're steadier, but some long-term tenants may have different legal protections and higher wear on infrastructure. Check leases and local landlord-tenant rules.
How seasonal are RV parks?
It depends on location. Many have strong seasons and quiet months. Look at occupancy by month across several years.
What infrastructure issues are common?
Aging electrical pedestals, water lines, septic systems or sewer connections, roads and bathhouses. Get inspections and repair estimates.
How are RV parks financed?
Often with commercial real estate or SBA loans where eligible, with the property appraised. Lenders look at net operating income, occupancy and the condition of the property.
Is an RV park's well a public water system?
It can be. Under the federal Safe Drinking Water Act, a system that serves at least 25 people (or has at least 15 connections) for at least 60 days a year is a public water system, and many campgrounds with their own wells fall into a category with testing and reporting duties, usually administered by the state. Ask for the system's classification, testing records and any violations.
How do I verify an RV park's revenue?
Tie the reservation system's revenue by month to card processor statements and bank deposits, and check the long-term site rent roll against monthly payments. Many states and localities levy lodging or occupancy taxes on short stays, so those filings are another independent record. Ask how cash from walk-ins and camp hosts is recorded.
Sources
- SBA: 504 loans (real estate)
- SBA SOP 50 10 8.1 (real estate appraisal; blended terms)
- EPA: Information about public water systems
- eCFR 40 CFR Part 141 (national primary drinking water regulations)
- EPA: Septic systems
- ASTM E1527-21 (Phase I environmental site assessment)
Related guides
General information, not legal, tax, financial or investment advice. Rules and lender practices change; check the linked sources and talk to your attorney, CPA and lender about your deal. Examples with named numbers are illustrations, not real businesses. OKtoBuy's Deal Check does not value businesses or give price opinions.