RV Park Due Diligence Checklist
The complete due diligence framework for RV park acquisitions. From financial analysis to technology assessment, ensure you uncover every detail before closing.
Comprehensive Due Diligence Framework
Four critical areas to evaluate before acquiring any RV park
Financial Analysis
- 3-year P&L verification
- Rent roll accuracy check
- Expense ratio benchmarking
- Revenue per site analysis
- Deferred maintenance estimate
Operational Assessment
- Occupancy trend analysis
- Tenant quality review
- Site condition audit
- Utility infrastructure status
- Staffing requirements
Market Analysis
- Competitive set analysis
- Demand drivers identification
- Rate comparison study
- Growth potential assessment
- Regulatory environment review
Technology Readiness
- Current software assessment
- Data migration planning
- Automation opportunities
- Website/booking evaluation
- Payment processing review
Key Underwriting Metrics
The numbers every RV park investor must understand
| Metric | Formula | Benchmark | Why It Matters |
|---|---|---|---|
| Cap Rate | NOI / Purchase Price | 8-12% for value-add | Primary valuation metric |
| Cash-on-Cash | Annual Cash Flow / Equity Invested | 12-20% Year 1 | Investor return measure |
| DSCR | NOI / Annual Debt Service | >1.25x minimum | Lender requirement |
| Expense Ratio | Operating Expenses / Revenue | 30-40% optimal | Efficiency indicator |
| RevPAR | Revenue per Available Site | Market dependent | Performance benchmark |
| Occupancy | Occupied Sites / Total Sites | 85%+ stabilized | Utilization metric |
See What You Are Inheriting (or Implementing)
Understand the operational systems you will be managing post-acquisition
Post-Acquisition Transition Timeline
How Camp Operator ensures a smooth ownership transition
Software Setup
Configure Camp Operator with park details, sites, and pricing
Staff Training
Train existing staff on new systems and processes
Data Migration
Import tenant data, reservations, and payment info
Closing Day
Go live with Camp Operator, notify tenants of new ownership
Stabilization
Monitor operations, address issues, optimize workflows
Value Creation
Implement improvements, track NOI growth
Red Flags to Watch For
Warning signs that should trigger deeper investigation or deal reconsideration
- Declining occupancy over past 3 years
- High tenant turnover rate (>40% annually)
- Deferred maintenance exceeding 10% of value
- Significant concentration in few tenants
- Below-market rents with no clear reason
- Environmental concerns or zoning issues
- Seller unwilling to provide detailed financials
- High percentage of cash-paying tenants
Value-Add Opportunities
Signs that indicate significant upside potential
- Below-market rents with room to raise
- No online booking or professional website
- Manual billing and collection processes
- Deferred maintenance that is cosmetic
- Underutilized land for expansion
- Lack of ancillary revenue streams
- Motivated seller with quick timeline
- Strong market with limited competition
Ready to Analyze Your Next Deal?
Use Camp Operator to model operations, project NOI, and plan your transition. Start free and pay only when you close.