Practical Guide for RV Park Planning, Development & Operations

Project Costs and Budget Planning

• Land Acquisition Costs: Price of suitable land for an RV park can range widely (from ~$1,000 up to $100,000+ per acre depending on location). Considerations include acreage needs for sites and amenities, accessibility, and any costs for rezoning or site clearing.

• Construction & Infrastructure Expenses: Site development costs per RV pad (including grading, roads, and utility hookups) typically run $15,000–$50,000 per site. Major line items include electrical, water, sewer/septic systems (septic systems alone can range from a few hundred to tens of thousands of dollars), as well as bathhouses, office/store buildings, and recreational facilities.

• Furniture, Fixtures & Equipment (FF&E): Budget for campground necessities like bathhouse fixtures, laundry machines, office computers, picnic tables, fire rings, playground or pool equipment, etc. These upfront FF&E investments are needed to deliver a comfortable guest experience beyond just the parking pads.

• Contingencies and Overruns: It’s prudent to include a contingency (often ~10–15% of total development budget) for unexpected costs – such as permit delays, cost inflation in materials, or weather-related construction setbacks. Having a buffer helps ensure the project can be completed even if expenses exceed initial estimates.

Permitting and Zoning Requirements

• Zoning Designation and Land Use Approval: Ensure the land is zoned for an RV park or campground use. Many municipalities require special or conditional use permits for RV parks, with specific standards for lot size, density, setbacks, road access, etc. Failing to address zoning early can lead to costly project delays or denials.

• Permit Application Process: Be prepared for a multi-agency review process that can take months. You’ll typically need to submit detailed site plans, undergo environmental impact assessments, and meet health and safety codes.. Permitting costs (application fees, engineering studies, traffic studies) should be factored in, and timelines can significantly affect your project schedule.

• Local Regulations and Building Codes: Compliance with building codes (for any structures, electrical/plumbing standards) and fire safety regulations is mandatory. Health department permits may govern things like well water, septic system installation, or campground sanitation standards. Engaging a zoning attorney or consultant to navigate local ordinances can streamline compliance.

• Community and Environmental Considerations: Many jurisdictions require public hearings or neighbor notifications for new RV parks. Proactively engage the community and address concerns (traffic, noise, environmental impact) to ease the approval process. Also consider any environmental regulations– for example, restrictions if the site has wetlands or endangered species habitat, which might mandate conservation measures.

Utility Infrastructure (Power, Water, Sewer, Internet)

• Electrical Power Supply: Plan for adequate electrical infrastructure to support modern RVs (which often require 50-amp hookups). This may involve upgrading utility connections or even working with the power company to add transformers. The cost of installing electrical hookups at each site and running power throughout the park is a significant budget item.

• Water Supply and Wastewater Systems: Determine water sources (tying into municipal water lines vs. drilling wells) and required capacity (peak demand for all sites plus facilities). For sewage, decide between connecting to municipal sewer (if available) or installing a septic system. Septic systems can be expensive (ranging from a few thousand up to tens of thousands of dollars depending on size) and require soil tests and state environmental approval. Include a dump station if sites don’t have individual sewer hookups.

• Internet/Fiber and Communications: Today’s campers expect reliable Wi-Fi. Plan for broadband internet installation, which could involve laying fiber optic cable or installing line-of-sight wireless systems. Consider the costs of network hardware, and work with telecom providers early to ensure the park has coverage (especially important for attracting remote workers and long-term guests). High-speed internet is increasingly a “must-have” amenity in RV parks, alongside traditional utilities.

• Other Utilities: Include plans for propane supply (onsite tank refills or exchanges), if offering, and EV charging stations as a forward-looking amenity for electric vehicle drivers. Don’t forget stormwater drainage infrastructure to manage rain runoff, and adequate trash disposal setups (dumpsters, recycling) to handle waste – all part of the park’s utility planning.

Environmental and Legal Considerations

• Environmental Impact & Wetlands: Evaluate the property for any environmental sensitivities. Development may require environmental impact studies to address wetlands, floodplains, or protected wildlife. Regulations often mandate wetland protection, stormwater management plans, and habitat conservation measures if applicable. Being proactive with environmental consultants can prevent legal issues and delays.

• ADA Compliance: Design the park to ADA standards so that guests with disabilities have accessible routes and facilities. This includes providing a certain number of ADA-accessible RV sites (typically with paved, level pads and extra room for wheelchair maneuvering), as well as accessible restrooms, showers, parking, and common areas. Prioritizing ADA compliance not only avoids legal penalties but also ensures an inclusive guest experience.

• Insurance Requirements: Secure appropriate insurance coverage for the RV park. General liability insurance is crucial to protect against accidents or injuries on-site. Additionally, property insurance will cover damage from fires, storms, or vandalism, and if you have employees, workers’ compensation is necessary. Lenders or investors will expect proof of insurance, and certain permits may require minimum coverage levels.

• Legal and Liability Issues: Put in place park rules and liability waivers to mitigate risks (for example, rules on pet control, pool use, or office hours). Understand your legal obligations around guest safety – for instance, maintaining safe premises (filling potholes, proper lighting) to avoid negligence claims. It’s wise to consult an attorney familiar with hospitality or campground law to draft waivers, review local innkeeper laws, and ensure compliance with all federal, state, and local regulations (from fire codes to business licensing).

Financing Options for RV Park Projects

• Traditional Bank Loans: Many RV park developers seek commercial loans from banks or credit unions. Banks will typically require a solid business plan, financial projections, and collateral. Expect to provide ~20–30% down payment for conventional loans, with the loan term often around 5–10 years plus a 20–25 year amortization. Lenders will look at debt service coverage (the park’s projected NOI vs. loan payments) and your experience or team’s expertise in the industry.

• SBA Loans: The U.S. Small Business Administration (SBA) offers 7(a) loans and 504 loans that are popular for RV parks and campgrounds. SBA 7(a) loans up to $5 million are available nationwide for RV park acquisition, construction, or expansion, often with favorable terms like 25-year amortizations for real estate. SBA loans generally require 10% (or more) equity injection, and borrowers must personally guarantee the loan. These government-backed loans have lower down payments and longer terms than typical bank loans, making them attractive for first-time owners.

• USDA Rural Development Loans: If the RV park is in a rural area, USDA Business & Industry (B&I) loans or other rural development programs can be a financing avenue. These can offer long-term, fixed-rate financing for qualifying rural businesses, which often includes campgrounds. They typically require the property to be in an eligible rural location and may have loan guarantees that entice local banks to lend.

• Private Equity and Investors: Institutional investors or private equity funds are increasingly interested in RV parks due to strong industry performance. Developers might partner with investors who provide capital in exchange for equity ownership. This route requires presenting an attractive ROI, exit strategy, and demonstrating competitive advantage. Family offices or real estate investment groups may also fund larger “RV resort” projects if the pro forma returns are compelling.

• Other Financing Considerations: Consider seller financing if buying an existing park (the seller carries a note), which can bridge gaps in funding. Also explore state or regional economic development grants/loans (especially if your park will create jobs in a rural area). Crowdfunding or syndication is another path – pooling funds from multiple investors. Always prepare a detailed financial package with projections, as all financiers (from banks to investors) will expect to see income forecasts, break-even analysis, and a clear repayment plan or exit strategy.

Design Trends and Competitive Benchmarking

• Modern Site Design & Amenities: Today’s RV parks are trending toward resort-like amenities and upscale experiences. Guests expect more than a basic parking spot – think luxury bathhouses, swimming pools, splash pads, dog parks, playgrounds, and clubhouse facilities. Parks are even incorporating unique offerings like glamping tents or tiny home rentals to diversify lodging options. Offering a mix of back-in and pull-through sites (e.g. a 60/40 mix) is recommended to accommodate large rigs while optimizing land use. Upscale amenities and beautiful landscaping can set you apart from older parks.

• Technology and Convenience: Competitive parks leverage technology in their design – from high-speed Wi-Fi throughout the campground to EV charging stations and smart access control (key-code gates or app-based check-in). Many parks now allow online reservations and use mobile apps for guest engagement. The latest design considerations even include workspace amenities for digital nomads (quiet areas or business centers) as remote work while RVing becomes common. Staying on top of such trends can attract a broader customer base.

• Sustainability and Green Design: Eco-friendly design is increasingly important. Incorporating sustainable practices like solar panel installations for powering facilities, rainwater harvesting for irrigation, energy-efficient LED lighting, and natural landscaping (to reduce irrigation) can appeal to environmentally conscious travelers andreduce operating costs. “Green” features can be a marketing point and sometimes qualify for grants or tax credits.

• Competitive Benchmarking: It’s crucial to research and benchmark against other RV parks in your region and market segment. Analyze what top-rated parks are offering: study their nightly rates (ADR), occupancy levels, and guest reviews. Identify gaps or niches – for instance, if competitors lack premium “big-rig” sites or fail to offer winter camping, those could be opportunities for you. Regularly visiting or reviewing other parks can inspire ideas (such as themed weekends, on-site food trucks, kayak rentals, etc.) and helps ensure your park’s offerings remain on par or better than the competition. Staying attuned to industry trends and guest expectations is an ongoing effort in the RV park business.

Staffing and Human Resources

• Key Roles and Staffing Model: Even though an RV park might not seem labor-intensive, it is a hospitality business and requires capable staff. Typical roles include a general manager or owner-operator overseeing the park, front office staff to handle reservations and guest check-ins, maintenance personnel to upkeep the grounds/facilities, and possibly activity or recreation coordinators for larger resorts. Smaller parks often rely on a few cross-trained employees wearing multiple hats, whereas larger parks or corporate-owned resorts might have dedicated departments.

• Workampers and Seasonal Staff: Many parks leverage work campers – RV travelers who work part-time in exchange for a free site and/or wages. This can help fill seasonal roles, such as campground hosts, groundskeepers, or office helpers during the busy summer season. Recruitment for workampers often happens through websites, social media groups, or word-of-mouth among the RV community. While work campers bring enthusiasm and flexibility, ensure you still provide proper training and adhere to labor laws (even if compensating via campsite hookups).

• Hiring Challenges: Recruiting and retaining staff in remote or rural locations can be challenging. Low unemployment in some areas and the seasonal nature of the business might limit your pool of applicants. It’s important to offer competitive compensation (wages plus possibly an RV site, if applicable), and consider bonuses or perks (like free propane, or end-of-season bonuses) to attract reliable workers. Conduct background checks for employees, especially those in unsupervised roles, as they will be interacting with guests and handling cash or sensitive information.

• Training and Customer Service: Since RV parks are hospitality-focused, invest in staff training for customer service, safety, and park procedures. A well-trained, friendly team directly impacts guest satisfaction. “Anyone can tell the difference between an understaffed RV park and one that’s not” – having enough staff to promptly address maintenance issues, answer guest questions, and keep the grounds immaculate is crucial. Provide employees with clear protocols (for after-hours emergencies, conflict resolution, etc.) and empower them to deliver a great guest experience.

• HR Policies and Management: Establish clear HR policies for your operation (even if it’s family-run). This includes work schedules, performance expectations, and safety guidelines. If employing a larger team, you may need to handle payroll, workers’ comp insurance, and possibly offer benefits for year-round employees. Some owner-operators outsource HR or use professional employer organizations (PEOs) once the staff count grows. Remember that happy employees often lead to happy campers, so create a positive work environment that encourages staff to take pride in the park.

Operating Expenses and Financial Modeling

• Typical Operating Expenses: Running an RV park comes with a variety of ongoing costs. Major operating expense categories include utilities (electricity for site hookups and lighting, water/sewer bills or septic maintenance, propane if provided), payroll for staff, maintenance and repairs (from lawn care to fixing hookups and facility upkeep), insurance and property taxes, marketing/advertising, reservation system or software fees, and office/admin costs. Don’t overlook smaller items like toiletries for restrooms, pool chemicals, or trash hauling – all of these need to be budgeted. Expenses can vary widely based on park size and amenities, but on average the expense ratio in this industry might be around 60–70% of revenues for a well-run park (leaving a healthy profit margin).

• Financial Projections & Pro Forma: Whether you’re a new developer or an owner seeking a loan, detailed financial modeling is essential. This means creating a pro forma income statement projecting revenues and expenses over at least the first 3–5 years. Account for seasonal fluctuations (peak summer vs. off-season) in both income and costs. Include a realistic ramp-up of occupancy over the first couple of years if it’s a new park. Fixed costs (like loan payments, insurance, base staff salaries) will occur year-round, so ensure you have cash flow to cover winter months if in a seasonal region. Lenders and investors will expect to see forecasts, a break-even analysis, and scenarios for different occupancy levels.

• Maintenance Reserves and CapEx: Plan for ongoing capital expenditures – things like periodically repaving roads, replacing appliances or equipment, upgrading technology, etc. It’s wise to set aside a portion of revenue each year for a replacement reserve fund. Financial models should incorporate these long-term reinvestments. For example, you might allocate a certain dollar amount per site per year for future capital improvements. This ensures the park’s quality doesn’t deteriorate and helps in forecasting true long-term profitability (i.e., accounting for asset depreciation and renewal).

• Cost Control and Optimization: Profitability can hinge on controlling operating costs. Implement strategies like bulk purchasing for supplies, energy-efficient upgrades (LED lighting, smart thermostats in buildings), and preventive maintenance to avoid costly repairs. Track your expense ratios – for instance, what percentage of revenue goes to labor, or utilities – and benchmark against industry norms. Utilizing software for accounting can help categorize and monitor expenses. “Expenses range from utilities and payroll to software and unexpected repairs”, so having an accurate, updated income statement will let you identify if any area is overspending and needs adjustment.

• Financial KPIs: Monitor key financial metrics in your operations. Net Operating Income (NOI) – which is revenue minus operating expenses – is crucial as it reflects the cash flow before debt service and is a primary figure for park valuation. Track your operating expense ratio (expenses as a % of revenue) to ensure efficiency. For instance, if new amenities increase utility costs, you’ll want to see a proportional revenue uptick. Regular financial reviews allow owner-operators and investors to ensure the park is meeting its financial targets and to course-correct if needed.

Revenue Streams and Pricing Strategy

• Short-Term Site Rentals: The core revenue for most RV parks comes from nightly or weekly campsite rentals. Pricing (ADR – Average Daily Rate) can vary based on site type (e.g. premium pull-through site with full hookups vs. a no-hookup tent site) and season. Many parks implement seasonal pricing or weekend premiums. Monitoring your occupancy and ADR together helps ensure you’re optimizing income – for example, if occupancy is consistently high, you may have room to raise rates. (For context, if an RV park has an ADR of $40 and 50% occupancy, the RevPAR is $20 – meaning each site yields $20/day on average.)

• Long-Term and Seasonal Rentals: Offering monthly or seasonal site rentals can provide a steady income base. Snowbird destinations, for instance, might have guests who pay for a 3-6 month stay. Monthly rates are typically lower on a per-night basis than short-term rates, but they guarantee occupancy. Balancing short-term vs. long-term mix is an art – long-term tenants provide stability (and reduce turnover costs), but too many can change the park’s character or limit availability for travel guests. Some parks reserve a portion of sites for long-term only. Emphasize recurring revenue in your model, as investors appreciate the stability of long-term lease income.

• Ancillary Amenities & Services: Additional revenue streams can significantly boost profitability Common examples include: charging fees for extra services like Wi-Fi or cable TV upgrades, coin-operated laundry machines, shower fees (for non-guests), equipment rentals (golf carts, bicycles, kayaks), and selling consumables (propane refills, firewood, ice, snacks in a camp store). Parks with conference rooms or pavilions might rent them out for rallies or events. Every amenity from a swimming pool (which might justify a resort fee) to a simple dump station (offered to non-guests for a fee) is an opportunity to generate incremental income.

• Onsite Retail and Food & Beverage: Many larger campgrounds have a general store that sells groceries, camping supplies, and souvenirs – this can be a modest but steady revenue source. Some also have snack bars, food trucks, or even a small cafe on site. While running a food operation adds complexity, partnering with local food trucks or vendors for busy weekends is an alternative. Consider also any revenue-share opportunities (for example, if you allow a local kayak tour company to base at your park, you might take a commission). The goal is to capture more guest spending on-property.

• Memberships and Loyalty Programs: Implementing a loyalty program or joining an existing network can drive repeat business. For instance, offering guests a membership deal (stay 10 nights get 1 free) or joining discount networks like Good Sam can attract cost-conscious RVers. Some parks participate in membership programs (Passport America, etc.) that offer discounted stays during off-peak times, which can help fill sites that would otherwise be empty. These programs won’t be the largest revenue source, but they are part of a pricing strategy to maximize occupancy and foster guest loyalty.

Technology Stack (Property Management and Guest Tech)

• Campground Management Software: Adopting a modern Property Management System (PMS) or campground reservation software is almost essential now. These platforms handle online reservations, site assignments, and payment processing, and often integrate with channel listings. Popular solutions include RezExpert, Campground Master, Astra, ResNexus, RoverPass, CampSpot, etc.. A good system will prevent double-bookings, enable easy check-ins, and generate reports on occupancy and revenue. Many PMS solutions also connect to accounting software to streamline financial tracking.

  
  

• Online Booking and OTA Integration: Ensure your park is listed on relevant online travel agencies (OTAs) or campground directories. Besides your own website, platforms like Good Sam, ReserveAmerica, GoCampingAmerica, and RV travel apps (Campendium, AllStays) can drive bookings. There are even campground-specific OTAs emerging. Connecting your reservation system to these channels (either directly or via a channel manager) keeps inventory updated. In today’s market, a large share of campers discover parks online, so a seamless digital presence is crucial.

• Guest Connectivity and Access: Technology on-site enhances guest experience. This includes park-wide Wi-Fi (often managed with commercial-grade networking equipment due to the range and number of users). Self-service kiosks or mobile check-in apps can expedite the arrival process, especially for late arrivals. For security, consider access control systems – such as keypad or RFID gate entry for after-hours or smart lock systems for facility doors (restrooms, laundry) only accessible to guests. These not only improve security but also reduce the need for staff to manage gate access.

• Operational Tech and Automation: Embrace tools that streamline operations: security cameras for monitoring, smart thermostats in buildings to save energy, and maintenance management apps for staff to log issues. Many parks use text or email alerts to communicate with guests (for example, sending a welcome message with the Wi-Fi password, or notifying about events). Additionally, having a strong social media and digital marketing tech stack (scheduling posts, managing reviews, email newsletters) can amplify your marketing – although not a “property” system, it’s part of the overall tech ecosystem an owner-operator will utilize.

• Data and Analytics: The benefit of modern campground software is the data it provides. Park operators can track metrics like booking lead time, average length of stay, occupancy by site type, etc. Using analytics, whether through the PMS or external tools, can inform decisions (like if premium sites are always full, you might price them higher, or if weekday occupancy is low, you might run specials). Technology not only improves daily operations but also provides the insight needed for strategic adjustments.

Marketing and Customer Acquisition

• Digital Presence and SEO: Just as travelers search for “RV parks near [destination]”, you want your park to appear prominently online. Invest in a well-designed website with online booking capabilities, lots of photos, and up-to-date information on amenities and policies. Optimize for search engines with relevant keywords (e.g., “campground in [Your Region]”, “RV resort with lake fishing”). Start a Google Business profile so that your park shows up on Google Maps and collects Google reviews – many campers rely on map apps and reviews to choose their stops.

• Online Travel Agencies (OTAs) and Directories: List your park on popular campground directories and travel sites. This includes general travel platforms like TripAdvisor or Expedia (which now list some RV parks), as well as camping-specific OTAs such as CampgroundReviews, The Dyrt, Hipcamp, or Campspot’s marketplace. Being visible on multiple channels helps capture customers who use different apps to find campsites. While these platforms may charge fees or commissions, they broaden your reach to audiences you might not get via direct marketing.

  
  

• Social Media and Content Marketing: Engage potential guests on social media – Facebook and Instagram are particularly useful for campgrounds. Share enticing photos of your scenery, amenities, and happy campers (with permission) Posting regularly about events, improvements, or local attractions can build a following. Many parks also find success in running Facebook Ads targeting people interested in camping within certain geographic radii. Additionally, consider creating content like blog posts or partnering with RV travel bloggers/YouTubers to feature your park; authentic content can improve your SEO and credibility.

• Loyalty Programs and Repeat Business: It’s far cheaper to retain guests than acquire new ones. Encourage repeat visits by offering a loyalty program or simple incentives – for example, a discount on a future stay if they rebook, or a punch card for local travelers. Collect guest emails and send out occasional newsletters with off-season deals or invite them to special events. Some parks join larger networks or franchises (KOA, Good Sam, Yogi Bear’s Jellystone, etc.) which come with built-in marketing and loyalty systems, though this involves franchise fees. For independent parks, building an email list and good online reputation is key to maintaining a steady flow of returning customers.

• Partnerships and Local Outreach: Don’t overlook offline and local marketing. Partner with local tourism boards, chambers of commerce, or nearby attractions (e.g., a theme park or national park) to get referrals. You might create packages – e.g., stay at the RV park and get a discount at the local rafting outfitter, cross-promoting each other. Attend RV shows or camping expos in your region with a booth to spread the word (especially if you’re a new park). Good signage on highways and at your location is also important – many RVers still find places to stay while on the road. A multifaceted marketing approach that combines digital and traditional channels will yield the best results in filling your sites.

Park Operations and Guest Services

• Check-In and Check-Out Procedures: Streamline your check-in process for arriving guests. Clearly communicate check-in times, after-hours procedures, and park rules at arrival. Many parks provide a welcome packet with a map, Wi-Fi codes, and local info. Utilizing technology (like pre-arrival texts/emails or self check-in kiosks) can reduce congestion at the office. Check-out usually involves ensuring the site is left clean and collecting gate cards or keys if applicable. Have clear policies for late check-outs or early arrivals to manage site scheduling. Setting these expectations and making the process efficient contributes to positive reviews.

• Grounds Maintenance and Cleanliness: Daily operations include keeping the park clean and well-maintained. Maintenance staff should have schedules for regular tasks: cleaning restrooms and showers (multiple times daily in peak season), checking and cleaning fire pits and grills, trash pickup, landscaping (mowing, trimming), and pool/spa upkeep if present. A preventative maintenance plan for infrastructure (e.g., inspecting water lines, electrical pedestals, septic systems) helps avoid outages or accidents. Prompt response to any issues (like a tripped breaker or a fallen tree limb) is crucial. Remember, the appearance and cleanliness of the park are often top factors in guest satisfaction.

• Guest Services and Amenities Management: Operating an RV park is akin to running a hotel in terms of guest services. Ensure staff are available (or on-call after hours) to assist guests – whether it’s guiding a rig into a site after dark, answering questions about the area, or handling complaints (like noise disturbances). If you offer amenities like a camp store, boat rentals, or planned activities, each of these needs an operational plan (hours of operation, staffing, maintenance of rental equipment, etc.). Hosting weekend events or social activities (BBQs, movie nights, kids’ crafts) can enhance guest experience but requires coordination. The goal is to create a welcoming atmosphere – often the personal touch and hospitality at an RV park is what earns loyalty beyond just the facilities.

• Safety and Security Protocols: Develop and rehearse safety procedures. This includes having an emergency action plan for severe weather (where do guests go in a tornado warning?), fire safety (extinguishers and maybe training staff on small fire response), and missing child or medical emergencies. Keep first aid kits and AEDs accessible. For security, ensure the park is well-lit at night and consider quiet hours enforcement to deter parties. Some parks have on-site security or a night host, especially if issues have occurred. At minimum, provide guests with a way to contact management or 911 easily. Clear rules (e.g., speed limits for vehicles, pet policies, use of generators) and their consistent enforcement will keep the park safe and enjoyable for everyone.

• Operational Manuals and Training: It’s wise for owner-operators to document their operating procedures. Having a campground operations manual with checklists for daily tasks, step-by-step guides for common issues (like resetting a breaker or handling a late-night check-in), and emergency contacts ensures consistency and helps train new staff. If you ever step away or hire a manager, these documents are invaluable. They also add value to the business in the eyes of lenders or buyers, showing that the park is run professionally. In essence, smooth operations are all about systems – the more you can standardize and plan for routine processes and surprises, the more efficiently your RV park will run day-to-day.

  
  

Key Performance Metrics (Occupancy, ADR, RevPAR, NOI)

• Occupancy Rate: This is the percentage of available sites that are occupied over a given period. It’s a fundamental indicator of demand and park utilization. For example, a 100-site park averaging 50 occupied sites has a 50% occupancy rate. Tracking occupancy by season and site type helps in forecasting and identifying peak times vs. slow periods. A high occupancy rate generally signals a healthy business, but ideally you pair it with strong pricing. (Parks often have lower occupancy in off-season; the key is maximizing it in peak season and shoulder seasons.)

• Average Daily Rate (ADR): In the RV park context, ADR represents the average revenue per night per occupied site. For instance, if in one day 50 sites are occupied and the total rental income is $2,000, the ADR is $40. Monitoring ADR over time shows how your pricing strategies are working. You might increase ADR by raising rates or getting guests to book premium-priced sites. However, raising ADR too much could lower occupancy if priced above the market. It’s a balance – many parks experiment with seasonal and holiday pricing to boost ADR when demand is highest.

• RevPAR (Revenue per Available Site): Adapted from hotels’ RevPAR, this metric combines occupancy and ADR to measure overall site revenue potential. RevPAR is calculated as Occupancy Rate × ADR, yielding the average revenue per available site-night. For example, if you have a 50% occupancy and $40 ADR, RevPAR is $20. This metric is useful for comparing performance across periods or against other parks, because it captures how well you’re filling sites and at what rate. An increasing RevPAR indicates improving performance (either better occupancy, higher rates, or both). Some campground industry sources call this metric RevPAS (Revenue per Available Site) but it’s the same concept.

• Net Operating Income (NOI): NOI is the park’s income after all operating expenses are paid, excluding financing costs and taxes. In formula terms, NOI = Total Revenues – Operating Expenses. This is a critical figure for investors and lenders because NOI drives the valuation of the RV park (commercial real estate is often valued based on NOI and market cap rates). Tracking NOI on a monthly and annual basis lets you see profitability trends. Increases in NOI can come from boosting revenue or cutting expenses (or both). For instance, if you add amenities that raise revenue faster than they raise expenses, your NOI will grow. Healthy NOI margins (relative to gross income) in RV parks might range from 30–50%+ depending on the park’s size and offerings.

• Other Metrics: Occupancy, ADR, RevPAR, and NOI are the main ones, but you should also monitor metrics like Customer Acquisition Cost (CAC) if you do paid marketing, Guest Satisfaction/Reviews (average ratings on online platforms), and perhaps Ancillary revenue per guest (to gauge how well you’re monetizing amenities). Investors might look at Cash-on-Cash return (annual cash flow vs. equity invested) and Cap Rate (NOI divided by property value) as well. For day-to-day operations, keeping an eye on average length of stay and seasonal booking lead times can help with planning and promotions. Essentially, a metrics-driven management approach enables data-backed decisions to improve the park’s performance over time.

Expansion Strategies for Growth

• Adding More RV Sites: Once your park is consistently hitting high occupancy, you may consider expanding the number of sites. This could involve developing adjacent land or reconfiguring layout to add pads. Before doing so, analyze demand and ROI – new sites cost money to build (estimates ~$15–50k per site as mentioned) but can increase revenue if demand supports it. Check zoning limits; you might need additional permits for expansion. Phased expansion (adding a few sites or a new section at a time) can be prudent, allowing you to grow without sacrificing service quality.

• Adding Alternative Accommodations: A popular expansion strategy is introducing new lodging types: cabins, park model RVs, glamping tents, yurts, or tiny houses for rent. These appeal to travelers who don’t have an RV and can command higher nightly rates than RV sites. They do require more maintenance (housekeeping, linens, etc.), effectively adding a small hospitality operation within your park. However, many parks find that having a mix of lodging options broadens their market and increases off-season usage (e.g., a winterized cabin can be rented year-round).

• Enhancing Amenities: Boosting or adding amenities can attract more guests and allow rate increases. Consider high-impact upgrades like a swimming pool, splash pad for kids, a modern playground, mini-golf, a dog wash station, or a larger camp store or café. When planning such amenities, research what competitors offer and what your target customers value. Adding amenities not only creates new revenue streams (e.g., camp store sales, equipment rentals)but also improves your park’s competitive positioning. Keep in mind the ongoing cost (staffing, maintenance) of any amenity – for example, a pool will require daily care and liability insurance adjustments.

• Vertical Integration Opportunities: Think about services that your guests need which you could provide directly (capturing more of their spending). For instance, if many guests are renters, perhaps you acquire rental RVs or partner to have on-site RV rentals ready to go. Some park owners open an RV repair/service center on-site or just outside the park, so travelers can get maintenance and you profit from the service (or at least get referral fees). Another angle is offering storage for RVs or boats – if you have land to spare, offseason storage can bring extra income and keep those customers attached to your park. These are examples of vertical integration that complement the core camping business.

• Franchising or Multi-Park Expansion: If you’ve developed a successful model, you might expand by acquiring or developing additional parks (becoming a multi-park operator) or franchising your concept. Joining a franchise like KOA or Yogi Bear’s Jellystone is another way to expand reach – you gain marketing power and a proven brand, though you give up some independence and pay fees. Institutional investors may be interested in backing an expansion if you can replicate success in multiple locations. Whether expanding your single park or growing into a network, ensure that quality and guest experience remain high – sometimes it’s better to have one great park than two mediocre ones. Expansion should align with demand and your capacity to manage a larger enterprise.

Exit Strategies and Long-Term Planning

• Sale to a REIT or Large Operator: The RV park industry has seen growing interest from real estate investment trusts (REITs) and large portfolio operators. If you build a successful park (strong NOI and occupancy track record), one exit strategy is to sell to a REIT or corporate campground company for a potentially sizable profit. REITs like Sun Communities and Equity LifeStyle Properties actively acquire RV parks and “RV resorts” as long-term income assets. Such buyers typically value the park based on a capitalization rate applied to NOI, so maximizing your NOI and maintaining clean financial records will pay off in the sale. This route is often attractive to institutional investors or retiring owners looking to cash out.

  
  

• 1031 Exchange: Many campground owners utilize a 1031 exchange when selling – this allows you to defer capital gains taxes by reinvesting the sale proceeds into another qualifying property. For example, you could sell your RV park and buy another larger park or a different commercial property, deferring taxes on the gain. In long-term planning, some owners “swap ’til they drop,” continuously exchanging properties to build wealth and eventually estate-plan their way out of taxes. If you think you might sell and reinvest, plan the timing carefully (1031 exchanges have strict timelines) and consult tax advisors to ensure compliance with IRS rules.

• Succession Planning: If the RV park is a family business or closely held, consider your succession plan. Will you pass it on to the next generation to continue operations? If so, start involving them in management early and outline a clear transition of roles. Alternatively, you might groom a key employee or manager to take over and perhaps buy you out over time. Succession could also mean setting the park up to run under a third-party management company so you can step away gradually. It’s important to have legal documents in place (wills, trusts, or buy-sell agreements) to facilitate a smooth handover and avoid disruptions in operation when the time comes.

• Refinancing or Partial Sale: As a form of “exit,” some owners do a significant refinance – essentially cashing out a portion of their equity while continuing to own and operate the park. This can fund other ventures or retirement needs without fully giving up the business. Others might sell a minority stake to an investor to take some chips off the table but still remain involved. These strategies can be considered if market conditions (like low interest rates or high property values) make it advantageous to recapitalize.

• Holding for Cash Flow vs. Selling: Finally, align your exit strategy with your financial goals. RV parks can be fantastic cash-flow generators, often with high profit margins and steady income once established. Some owners choose to hold indefinitely as a lifestyle business that also provides ongoing income. Others aim to improve and flip the park for a profit after 5–10 years. Keep an eye on market trends – for instance, if cap rates are compressing and park values are high, it might be a good time to sell. Conversely, if you see long-term growth in RV travel demand, holding the asset could yield greater returns. Plan ahead by knowing the potential exit routes and prepping the business (financial records, physical condition, etc.) to be due-diligence ready when an opportunity arises.

May 22, 2025 by a collective of authors at MMCG Invest, LLC, RV park feaisbility study consultants