Most of what goes wrong in an RV park purchase could have been caught in 45 days. A rent roll that lists 90 sites when 70 are rentable, a drain field that stops accepting water on a Sunday checkout, a health-department permit that expires the day the deed records: each surfaces during the contingency period if the right person orders the right report and reads it. A buyer who skips that work closes on a different park than the one they priced.
The contingency period (the contract may call it the inspection, due diligence or feasibility period) is the window after the purchase agreement is signed in which the buyer may terminate for any reason and recover the earnest money deposit. Every check below belongs inside that window, along with who performs it, what it costs, and which findings justify walking away. If you own the park, the same list shows what a serious buyer will do with your records, and where assembling permits, returns and utility history before listing saves weeks on both sides.
RV park due diligence in short: the checks every buyer must complete
Due diligence when buying a rv park falls into six categories, and the contract should allow enough time to finish all six before the deposit goes hard.
- Financial: Three years of filed tax returns, 12 to 36 months of bank statements and reservation-system exports, reconciled against each other and against the rent roll.
- Physical and utility: Septic scoping and load testing, well water sampling, pedestal amperage and service capacity, roads and drainage, each priced for repair.
- Zoning, permits and licensing: A written zoning letter or report, the status of the operating license (which usually does not transfer), and the conditions attached to any conditional use permit.
- Environmental: A Phase I Environmental Site Assessment, and a Phase II if the Phase I finds a recognized environmental condition such as a fuel tank.
- Legal and title: Title commitment, ALTA/NSPS survey, easements and access, and every lease, seasonal agreement and guest deposit on the books.
- Market: Occupancy, average daily rate and revenue per available site against platform benchmarks, plus a rent survey of nearby parks.
The serious part of this work starts after the contract is signed. RV Park University's guide explains that sellers generally withhold private tax returns until a purchase agreement is signed, and OHI's due diligence checklist notes that a lender's request for seller returns "is often objectionable to sellers and needs some finesse" (OHI). Before an offer, a buyer can review the rate card, the listing's site count, public zoning maps and the condition of the entrance road. The returns, deposits, permits and third-party reports come afterward, which is why the period's length and start date are negotiated terms rather than formalities.
When diligence starts: pre-offer screening vs the post-contract contingency period
Most RV park purchase agreements set a 30- to 60-day inspection period, and the people who buy parks for a living push toward the longer end. Frank Rolfe of RV Park University treats 30 days as the baseline, says "sixty days is far superior to thirty if you can get it," and calls anything under 30 "way too short," though he has accepted 14 days with a difficult seller (Rolfe and Reynolds). Broker Marie Hansen of RV Park Sales puts the usual period at 45 days (RV Park Sales), and attorneys at MC Law describe 45 to 60 days as typical when title, survey and environmental reports are needed (MC Law). Filed contracts land in the same range: the Paradise RV Resort agreement on file with the SEC gives 45 days from the Effective Date (SEC), while the Pirateland Campground agreement allowed 20 business days.
When the clock starts matters as much as its length. Rolfe's sample contract runs 30 days after "receiving all documents and materials from SELLER," and he writes that "our clock doesn't start on diligence until mom and pop give us such things as their financials" (RV Park University). Baker Donelson notes the period "usually begins upon the effective date" but may start on delivery, and recommends writing the expiration as an exact time and date so nobody argues later about timeliness (Baker Donelson). Sellers have a fair counterpoint. A Chambers article on diligence tensions observes that the sooner a contract "goes hard, the less risk of a re-trade," and warns sellers against a period that starts only after "all due diligence documents" arrive unless those documents are listed up front (Chambers). The workable middle combines a named document list and a delivery deadline, with the period running from complete delivery. Phil Artz of Parks and Places told Woodall's that sellers should have "financials, equipment lists and due diligence items" ready before marketing (Woodall's), which is the owner's side of the same arrangement.
Earnest money for RV parks runs smaller than general commercial norms. Rolfe calls "around 1%" the RV park standard (RV Park University); Kraus Law cites 1–3% held by a title company, and Fox Rothschild's Lloyd Kepple 1–5%, with larger transactions lower. Northeast Campground Brokers' Eric Johnson describes about $10,000 at the offer stage and "at least 10%" at the purchase-and-sale signing. Deposits are often staged, with a second payment due when diligence expires; Paradise RV Resort required $100,000 within two business days of the Effective Date and another $150,000 after the inspection period.
Refundability is the point of the whole structure. Hansen describes the deposit as fully refundable until the period expires. Rolfe's position is that earnest money should come back "if you cancel for any reason during your due diligence or financing provision," and that non-refundable earnest money "is rarely a good idea" (RV Park University). The Pirateland contract let the buyer terminate for any reason before 5:00 p.m. Eastern on the last day; after that, as Johnson puts it, the deposit "usually becomes non-refundable." None of these figures is set by statute. Kepple's summary is that "a negotiation can produce any result."
Financial verification: reconciling rent roll, tax returns and bank deposits
Verify income by tying independent records to each other, and treat the seller's P&L as the document to test rather than the one to trust. RV Park Shop's method reconciles three full years of federal returns (Schedule C, Form 1065 or 1120S) with merchant and bank statements and with property-management-system exports from Campspot, RoverPass, NewBook or Firefly, with the instruction "Never rely solely on seller-provided Profit & Loss (P&L) statements." Rolfe runs the same match against bank deposits, reservation systems, tax returns and merchant records.
The work breaks into four comparisons.
- Returns against the P&L: Campground Accounting calls three years of returns and P&Ls "non-negotiable." Randy Isaacson of CCF told Woodall's that "too many times the tax returns come late in the game. That is kind of the Bible for the bank" (Woodall's).
- Deposits against reported revenue (proof of cash): Pull 12 to 36 months of operating-account statements and classify every non-revenue deposit. Peak Business Valuation's illustration shows $4.25 million of deposits against $4.00 million of reported revenue, with the $250,000 gap explained by a $150,000 credit-line advance, a $75,000 owner contribution and a $25,000 transfer (Peak Business Valuation). Untraced "transfer" deposits can count the same cash twice.
- Reservation reports against payments: Campspot's accounting FAQ says its Total Payments Received report will not line up with Revenue Summary by Site because payment and stay dates differ, and that "Financial reports should be used for taxes and determining exact revenue" (Campspot). Ask for occupancy by season, ADR, guest mix and cancellation and refund rates from the same system.
- Rent roll against the site map: A rent roll lists each site, occupant, rate, monthly or transient status and move-in date. Underwriter Tamara Ashworth's rule is that "A 90-site park with 70 usable sites is not a 90-site park for underwriting purposes" (Ashworth), and Colliers appraiser Erik Hanson says rent-roll discrepancies are common.
Utility history is the cheapest occupancy check available. Rolfe's reasoning: "When occupancy rises, utilities rise. When utilities stay low, occupancy was likely low" (RV Park University). Campground Investor asks for three years of monthly occupancy because that data "often contradicts claimed occupancy percentages."
The gap brokers flag most often is unreported cash, and it costs the seller more than the buyer. Rolfe's example is a seller who claims $85,000 of net income when the return shows $45,000; the consequences are a lower price, seller financing, or no bank loan (RV Park University). Jeff Hoffman said on Modern Campground's August 19, 2026 fireside chat that removing income to save taxes can be "knocking $100,000 of value or more off of your park" (Modern Campground), and James Cook of Yale Realty told Woodall's: "If you hide $20,000 or $30,000 a year, you're losing $300,000 in potential value." For an owner thinking about a sale two or three years out, that arithmetic argues for reporting every dollar through at least three filing years before listing. Lenders apply a consistent set of add-back rules when they normalize earnings:
| Add-back | Lender treatment |
|---|---|
| Depreciation and amortization | Accepted |
| Interest on debt the buyer will not assume | Accepted with proof of payoff |
| Owner salary above a replacement manager's cost | Accepted only for the excess |
| Unreported cash income | Not accepted unless it was deposited |
Source: Commercial Lending X. Rolfe adds that sellers often classify repairs as capital costs, which inflates operating income. A different return type is a question to ask rather than proof of a problem: IRS instructions put rental real estate on Schedule E unless significant services are provided, while Schedule SE names "tourist camps or homes, trailer parks" as rentals with substantial services, and a campground CPA firm argues an operating campground "cannot be taxed on a Schedule E."
Physical and utility inspection: septic, water, electrical amp capacity and roads
Order separate inspections for wastewater, drinking water, electrical and roads, because no single commercial inspector covers all four and each report feeds the repair budget. A general property condition assessment runs $1,250–$5,000 (USTContractors); an infrastructure bundle of sewer camera, electrical review and road and drainage assessment runs $3,000–$8,000 for a mid-size manufactured housing community, the closest priced comparable (Keel Team). Mark Whitworth told Woodall's that even a squeaky-clean park may need electric, sewer or water upgrades (Woodall's).
Septic testing has four parts:
- Pump and inspect the tanks.
- Camera the lines.
- Load-test the drain field.
- Pull the paper.
The National Association of Wastewater Technicians' pumping code requires a visual interior inspection of baffles and condition at every pump-out, and InterNACHI's guidance is that sludge should not exceed one third of tank volume (InterNACHI). Camera scoping finds cracks, roots and collapse; for individual site hookup lines under vehicle traffic, it is the only reliable way to find crushed or offset pipe without digging.
NAWT's hydraulic load test protocol runs 24 to 48 hours after pumping and rates a drain field that cannot take its design flow before liquid reaches the top of the media as "Unacceptable" (NAWT); a dye test confirms a fault it finds and proves nothing when the dye stays hidden. Woodall's wastewater series adds the campground-specific point: Sunday departure surges stress systems, mass loading matters more than hydraulic loading, and a buyer should review old plans, permits and repair history and obtain at least a flow and load report (Woodall's).
Septic costs sit at two scales. Commercial inspection and reporting runs $800–$2,500 and park pumping $800–$2,500 per visit (Beaumont Septic); a camera inspection is $125–$500. Replacement is a different number: $150,000–$500,000 or more for a 50- to 100-site conventional system per SepticMind, a vendor estimate, and Oregon put a new system at a 50-space RV park and marina at $120,000 (Woodall's).
Permitting shifts with flow. EPA classifies a system serving 20 or more people per day as a large-capacity septic system, lists RV parks by name, and treats it as a Class V well that is generally authorized by rule with inventory filed to the state (EPA). Texas requires a TCEQ permit above 5,000 gallons per day, about 100 hookups (TCEQ), and North Carolina requires state review above 3,000 gallons per day or for any system handling RV dump-station waste.
A park well that serves at least 15 connections or 25 people a day for 60 days a year is a public water system under 40 CFR 141.2, and EPA classifies campgrounds as transient non-community systems (eCFR). That status brings the Revised Total Coliform Rule: at least quarterly monitoring as the baseline, three repeat samples within 24 hours of a positive, and for seasonal systems a start-up procedure of flushing, disinfection and sampling certified to the state before serving water (EPA). The nitrate limit is 10 mg/L, and an exceedance requires public notice within 24 hours. Ask the seller for the last three years of sample results and any state correspondence.
An Indiana campground paid a $330 civil penalty for missed coliform samples (Woodall's), and a Pennsylvania owner cut his park from 60 connections to 14 to avoid a public water permit (Woodall's). Lab fees are small: total coliform costs $23 at Michigan's state lab (fee schedule effective October 1, 2026), $35 at Wisconsin's and $40 at Penn State, with nitrate at $15–$41. A well inspection runs $250–$550.
For electrical, count pedestals by amperage against the code mix, then ask whether the service behind them can carry a 50-amp load. Section 551.71 of the 2023 NEC requires at least 70% of sites with electrical supply to have a 30-amp receptacle and a 50-amp 125/250V receptacle at 20% of existing sites and 40% of new ones, with every 50-amp site also carrying a 30-amp receptacle (Captain Code 2023). Which edition applies depends on the state: as of March 1, 2026, the 2023 NEC was in force in 25 states, the 2020 in 15, the 2017 in three and the 2008 in two, with ten states moving to adopt the 2026 edition that took effect September 9, 2025 (NFPA).
Capacity is the harder question. The code's calculated load for a 50-amp site is 12,000 VA; applying the 41% demand factor for 36 or more sites, 36 new 50-amp sites need about 177 kVA of service before any bathhouse or pool. A property-wide electrical assessment costs about $2,500–$4,000, and a property with undersized wiring can run into six figures, Electrical Works told Modern Campground (Modern Campground).
Project figures show the spread: Kings River in California paid $1 million to add a 50-amp plug at all 189 sites, about $5,291 a site on a new system (Woodall's), while an Iowa state park planning estimate put 30 pedestal replacements at $50,000–$75,000. Hoffman's view is that getting older parks to 50 amps is cost prohibitive for most (Modern Campground). RVIA expects grounding monitor interrupter enforcement on new RVs to coincide with model year 2028, about June 1, 2027, and advises parks to test ground continuity from pedestals to service panels (RVIA); ask the electrician to include that test.
Roads get a walk after rain rather than a report. Note standing water, rutting at turns, and whether the longest rigs the park advertises can make every loop. The drainage portion of the infrastructure bundle covers the rest.
Utility verification worked example
Pull 12 months of water and electric bills from the utility, the same 12 months of submeter readings, and the pass-through invoices sent to guests. Compare what the utility delivered with what the meters recorded, then compare the meter records with what the park billed back. RV Park Advisors recommend 12 to 24 months of bills. The gap between delivered and metered is loss (leaks, unmetered bathhouses, irrigation, theft). The gap between metered and billed is under-collected income.
Two benchmarks frame the first gap. EPA says average system water loss is 16%, with up to 75% of it recoverable, and most states with a policy set acceptable losses at 10–15% (EPA). Metron's case study on Havenpark, a manufactured housing operator (vendor marketing, so read it as an illustration), describes utility recapture rising "from around 65% to well over 95%" within 12 months after metering, one leak of nearly 500 gallons per day, and one event where about a million gallons were billed to the community and only 450,000 billed back (Metron). On those numbers the community was paying for 55% of its water with no offsetting revenue, well outside the 10–15% band. Mike Sorensen of Wild Energy told Woodall's that for stays over a week "you're just throwing money away if your sites aren't metered" (Woodall's).
The second gap has a legal ceiling that varies by state, so pass-through revenue above cost can be a liability rather than upside. Texas governs RV park submetering under Utilities Code Chapter 184, Subchapter C, with a safe harbor for owners who recover no more than their utility charges annually, keep three years of records, use a fixed annual per-kWh rate and refund any excess (Texas). Florida caps water resale at the actual price plus meter-reading and billing cost, not exceeding 9% of cost. Arizona's long-term RV space law limits submeter charges to the basic residential rate plus provider fees and taxes, caps ratio-billing administrative fees at the greater of actual cost or 10%, and requires overcharges refunded within 60 days (Arizona). Vermont requires campground meters calibrated on installation and at least every 24 months, with error over two percent requiring adjustment. If the seller's electric income line exceeds the electric expense line in a state with cost-only billing, the difference belongs in the legal review, not the pro forma.
Deferred maintenance and CapEx budgeting
Price every item the inspections turn up into the offer, with a quote attached, rather than noting it and hoping. Rolfe's framing is that deferred infrastructure is a pricing issue, not an automatic walk-away, while failing utilities need a budget (RV Park University). Attorney Christine Taylor wrote in Woodall's that "seldom is a campground completely in compliance" with ADA and other requirements, and that new town codes which make operation harder after the sale are "on you as the buyer" (Woodall's). Bedell Law's June 2026 guidance on California park purchases makes the same point for violations: the buyer inherits all outstanding health, safety and infrastructure citations (Bedell).
A workable budget sorts the list three ways: items that must be fixed before the next season (a failed drain field section, a bathhouse water heater), items that can be scheduled over two to five years (road resurfacing, pedestal replacement loop by loop), and expansion the buyer wants but the park does not need (new sites, a second bathhouse). Only the first two belong in the price negotiation. Transformer pricing illustrates the scale of the second group: Transformer4U's benchmarks list a 100 kVA single-phase pad-mount unit at $12,000–$18,000 and $22,000–$36,000 installed. For an owner, a dated repair log and copies of past permits are what keep a buyer's repair estimate honest.
Zoning, permits, licensing and non-conforming use: what transfers to you
In most states the park's health-department operating license ends at closing and the buyer applies for a new one, while zoning entitlements run with the land. The license rules are statutory and state-specific:
| State | Transfer rule |
|---|---|
| Florida | Permit "not transferable from one place or person to another"; transferee applies within 60 days with a recorded deed or lease (Fla. Stat. ch. 513) |
| Michigan | No transfer unless the transferee meets all requirements and pays a $101 transfer fee (MCL 333.12509) |
| New York | Not transferable; expires on change of operator; apply at least 30 days before the change (NY regs) |
| Wisconsin | Sale requires a new license; department issues or denies within 30 days after requirements are met; fees $410/$965 |
| Minnesota | "The license isn't transferable: you'll have to get your own"; buyer has 30 days to apply |
| Oregon, Ohio, Pennsylvania, Montana | Not transferable; Montana requires 30 days' written notice before sale |
Build the application into the closing calendar so the park is licensed on day one of your ownership. The research located no general transfer rule for Colorado, Texas, Indiana or ordinary Iowa campgrounds, so those states need a direct call to the licensing agency.
Conditional use permits (CUPs) behave differently. California planning guidance states they "run with the land not the applicant" (California LCI), but local text can add conditions: Fremont County, Colorado requires notice and a written transferee statement assuming the permit's obligations, defaults the term to 10 years absent a specific finding, and deems approval expired after six months of discontinuance (Fremont County). In Wapiti Park, the Minnesota Court of Appeals held a campground's CUP was perpetual yet revocable for violating its conditions, which ended campground use (FindLaw). Read every condition, then confirm the park meets each one.
Get the zoning answer in writing from two places. A municipal zoning verification letter states the district, permitted uses, open code violations, variances and special permits; fees and turnaround vary from $10–$25 and up to seven business days in Clarksville, Tennessee to $200 per folio and 20 business days in Miami (Miami). A third-party zoning report adds conformance analysis: NV5 estimates $700–$850 including municipal fees over two to three weeks (NV5), and Zoning-Info's conformance report is a $1,050 flat fee that states whether the use is Legal Conforming, Legal Nonconforming or Nonconforming and quotes the reconstruction clause (Zoning-Info). The ALTA 3.1 zoning endorsement on the title policy insures against loss if the land is not in the stated zone or the specified uses are not allowed. Site count is the item to check hardest. Rolfe's warning: "If the zoning certificate only allows for 100, those extra lots could be unpermitted."
Two terms cause confusion here. In RV industry usage, the "10 year rule" is a private park admission policy that turns away RVs older than about 10 years, usually with exceptions for well-kept units; RV Life describes it as common at upscale parks (RV Life), and Changing Gears cites a ToGo RV poll estimating 3–5% of parks enforce it strictly while almost 80% apply some condition standard (Changing Gears). It has nothing to do with zoning. The only ten-year statute in the research is North Carolina G.S. 160D-1405(c1), which bars enforcement more than 10 years after a grandfathered use is terminated, except for imminent hazards (NC General Assembly).
Grandfathering itself, the legal non-conforming use, generally survives a sale. A Connecticut legislative report summarizes the national rule as a right that "runs with the land," unaffected by ownership changes (Connecticut OLR). The ways to lose it are discontinuance (the American Planning Association's survey found periods from "if discontinued" to five years, with one year most common (APA)), expansion (the most accepted restriction is that the use may not be extended), and destruction above a threshold the APA puts at 50–75% of building value. The Minnesota Supreme Court held in White v. City of Elk River that obtaining a CUP does not surrender non-conforming rights unless validly waived (FindLaw). A park running on a grandfathered use cannot add sites without a new entitlement, so a buyer cannot include unsupported expansion in the pro forma.
Environmental, title and legal review: Phase I, ALTA survey, easements and leases
Order the Phase I, the title commitment and the ALTA/NSPS survey on the first day of the period, because each takes two to four weeks and the lender will require the first two regardless. The recognized Phase I standard is ASTM E1527-21, listed at 40 CFR 312.11(a) (eCFR); EPA's recognition rule became effective February 13, 2023, and the older E1527-13 stopped qualifying on February 13, 2024.
A compliant Phase I includes interviews with owners, operators and occupants, historical source review (aerial photographs, city directories, topographic and fire insurance maps at minimum), government records review, a visual inspection of the property and adjoining properties, and a written report signed by an environmental professional (EPA). The report must be dated within one year before acquisition, with the interviews, records review, site visit and lien search within 180 days.
Pricing for an RV park runs $1,900–$5,000 standard and up to $6,500 with known issues under Apprais.ai's RV park guide (Apprais.ai); Aegis Environmental quotes $2,150–$5,000 over two to four weeks, with a 20–50% rush premium.
A Phase II follows when the Phase I identifies a recognized environmental condition (REC). The conditions that produce RECs at campgrounds are specific. Vertex Engineering's review of outdoor recreation properties lists:
- Diesel above-ground and underground tanks, plus propane and heating-oil tanks; older properties may have unregistered tanks or gaps in tank history.
- Maintenance shops with in-ground hydraulic lifts and floor drains lacking oil/water separators.
- Chemicals stored without containment and former orchard or nursery land where pesticides were used.
- On-site septic and wells, which Vertex notes have ended land purchases (Vertex).
PFAS is a newer question: EPA designated PFOA and PFOS as CERCLA hazardous substances effective July 8, 2024 and retained the designation on September 17, 2025, but Fox Rothschild's September 2025 review found consultants generally do not treat PFAS as a REC without evidence of a release or likely use, except where biosolids were applied (Fox Rothschild).
Phase II soil and groundwater sampling runs $8,000–$12,000 in Aegis's typical range (Aegis) and $25,000–$100,000 for contaminated or large-area sites per LoanGuys, driven by boring count and depth, drilling method and follow-on sampling. It also adds four to eight weeks, which is why the fuel tank question belongs in the first conversation with the seller.
The survey standard changed this year. The 2026 ALTA/NSPS Minimum Standard Detail Requirements took effect February 23, 2026, superseding the 2021 version (NSPS); changes include a required note of possession along the perimeter and acceptance of drone and LiDAR methods. The 2026 standard lists campgrounds, mobile home parks, easements, leases and mineral interests as properties presenting issues outside normal scope that require a written scope agreement (ALTA), so name the Table A items you want: flood zone (item 3), zoning from a client-supplied report (6), underground utilities from plans or a private locate (11), offsite easements (18) and encroachments (20). Underground features cannot be reliably shown without excavation. Cost estimates disagree: RV Park Shop cites $3,000–$6,500, Surveyors.io $2,500–$10,000 over two to four weeks, and SurveyALTA $12,000–$25,000 for 5–20 acres (SurveyALTA). Acreage and Table A scope explain most of the spread.
Title review for a park concentrates on access and easements. The American Bar Association's 2025 treatment of commercial title issues notes that blanket easements "lack a specific description as to its location on the property, creating uncertainty and risk for owners and lenders," and that if the standard survey exception is not deleted, coverage excludes encroachments, boundary disputes, prescriptive easement claims and apparent unrecorded easements (ABA); deleting that exception typically requires the ALTA survey. ALTA endorsement 17.1-06 covers lack of actual access. A title commitment package costs roughly $100–$1,000.
The legal document request should name each item: the title commitment with all exception documents, the survey, every lease and seasonal site agreement, every license agreement, the schedule of advance deposits and guest security deposits (a liability the buyer assumes), vendor and service contracts, and any management agreement. Hansen's step-by-step guide calls for all leases and rental agreements, and long-term residents on informal arrangements may hold tenancy rights under state law, which the next section covers. Camp attorney Isaac Mamaysky's list adds easements, access roads, wetlands, water, septic, violations and permitting (Camp Law and Finance).
Market and revenue analysis: occupancy, ADR, RevPAS and the competitive rent survey
Compare the park's own occupancy, ADR and RevPAS to the published series before accepting any growth story, and know that the published series describe different populations. OHI and Campspot define ADR as campsite revenue divided by occupied sites, occupancy as occupied sites divided by active sites, and RevPAS (revenue per available site) as ADR multiplied by occupancy, with transient meaning under 28 days (OHI Data Dig Q1 2026). The current reference points:
| Source | Scope | Occupancy | ADR |
|---|---|---|---|
| Campspot mid-year 2026 | National platform, Q2 | 44.5% (down 1% year over year) | $26.45 (up 3%) |
| OHI/Campspot Data Dig Q1 2026, RV sites | U.S. RV sites | 36.3% | $18.73; RevPAS $6.79 |
| Outdoor Hospitality Pricing Index, Sept. 2026 | 23,000+ properties | 56.0% Demand Pressure Index (a floor estimate, not realized occupancy) | RV sites $71.32 |
Sources: Campspot, OHPI. The ADR gap between Campspot's platform average and OHPI's listed RV-site rate reflects different methods and property mixes, so a park should be compared to one series consistently rather than to both. Multiplying Campspot's Q2 figures gives a RevPAS of about $11.77, an average of averages that is indicative only. Operator anecdotes sit well above the platform averages: a Modern Campground panel in January 2026 cited $75–$100 per night for a well-appointed RV site in a high-demand area, and Hoffman said of his own park, "We charge 10,000 for a seasonal site that's only 168 days long."
The rent survey is simpler than the benchmarks and more useful for pricing. Call or book online at the six to ten parks a guest would consider instead of this one, and record nightly, weekly, monthly and seasonal rates by site type (30-amp water/electric, 50-amp full hookup, pull-through), plus what each includes. If the subject park charges less than its neighbors for a comparable site, the gap is an underwriting input; if it charges more, the question is whether guests have accepted the premium at the recorded occupancy. OHI's economic outlook, reported by Woodall's, states that "Transient business is declining, while seasonal and long-term stays are stable or increasing" (Woodall's), which argues for modeling nightly revenue flat rather than growing.
Cap rate is where the price lands. A cap rate is net operating income divided by purchase price, so a higher rate means a lower price for the same income. Hoffman's illustration in Woodall's: a park worth $7.14 million at a 7% cap is worth $6.25 million at 8% and $5.56 million at 9% (Woodall's). Yale Realty & Capital Advisors' June 2026 report counted 40 RV park transactions covering 5,186 sites in 2025, with a median $33,258 per site and a median cap rate of 7.14%, and sets tier bands of 10–15% for basic rural parks, 8–12% standard, 6–9% destination and 5–7% premium (Yale). Newmark's 1Q 2026 underwriting assumptions put Class A and B RV parks at an 8.00% going-in cap and Class C at 9.00%, a 50–150 basis point premium over manufactured housing communities. One closed comparable: Whistle Stop RV Resort in Abilene, Texas, 115 sites, sold in December 2025 at about 7.75% (Marcus & Millichap). On the August 2026 Modern Campground panel, Hoffman said a mom-and-pop buyer "definitely wanna get 9 to 10%," and broker Landan Dory put refinancing rates at 6.5–7.25%, which leaves thin spread for a buyer paying 7%.
Transient guests vs long-term residents: the risk nobody prices in
A guest who has stayed past a state-specific threshold may be a tenant with eviction protections, and that single fact changes the removal process, the lender's eligibility test and the cap rate at the same time. The threshold is set by state statute rather than the registration card:
| Question | Transient guest | Long-term tenant or resident |
|---|---|---|
| California (Civ. Code §799.20 et seq.) | Occupant: 30 days or less; 72-hour written notice, then police or sheriff removal | Tenant: more than 30 consecutive days, 30 days' notice and unlawful detainer; Resident: nine months or more, 60 days' notice citing a listed reason |
| Florida (ch. 513, 83) | Registered six months or less; §513.13 lets the operator give written notice and request law-enforcement removal | Continuous occupancy past six months with operator knowledge creates a presumption of nontransient status; Chapter 83 notices of 3 days (nonpayment), 7 days (cure) or 30 days (month to month) |
| Arizona (A.R.S. §33-2101) | Under 180 consecutive days | Over 180 consecutive days: 60 days' notice for rent changes, 90 days for nonrenewal |
| Oregon, North Carolina, Washington, Nevada | 90-day vacation occupancy; under 90 days; under one month; under 3 months | Beyond those periods, landlord-tenant law; a Nevada lot held out for 3 months or more becomes a manufactured home lot |
| Texas | No statutory day count; AG Opinion KP-0222 makes status case by case, with exclusive possession the "first and perhaps most important" factor | Tenants get three days' written notice before a forcible detainer suit, trial on days 10–21, writ no earlier than day six after judgment |
Sources: California, Fla. Stat. §513.01, Arizona, Texas AG. Practitioner readings do not always match the statutes: Christine Taylor wrote in Woodall's that a Florida guest becomes a tenant after more than 14 days in six months or more than 7 consecutive nights (Woodall's), which differs from the six-month concept in the statute, so local counsel settles it. OHI says that in some states a guest becomes a tenant "in some cases, as little as 30 days," and OHI's Jeff Sims advises requesting a "guest removal or ejection" rather than an eviction, because the word "eviction" can trigger landlord-tenant assumptions (OHI).
During diligence this means walking the rent roll site by site and asking three questions about each monthly or seasonal occupant: how long they have been there continuously, what paper governs the stay, and whether the state's threshold has passed. CT Acquisitions estimates 10–30% of sites at some parks are occupied by long-term residents who displace higher-paying nightly guests (CT Acquisitions). For an owner, those residents are often the people who plowed the road in a storm or watched the office on a Sunday; the point of the review is to document the arrangement, not to plan their departure.
Lenders care because of an eligibility line. Under SBA SOP 50 10 8.1, effective October 1, 2026, mobile home parks are ineligible, and RV parks and campgrounds qualify only if more than 50% of prior-year revenue comes from transients staying 30 days or less (SOP 50 10 8.1). Feasibility consultant MMCG notes the test "measures revenue, not sites," and that a three-month seasonal contract or annual lease is non-transient "however the guest is registered," so a park can be state-law compliant yet SBA-ineligible (MMCG). CCF's Isaacson says conventional lenders ask what share of guests are overnight versus seasonal or long-term. The research found no published lender haircut on long-stay income and no cap on long-term sites outside the SBA test; that absence is worth stating plainly rather than guessing a percentage.
The valuation effect runs both ways. RVparked's early-2025 benchmarks put resident-community parks at 8.0–9.5% caps and highway transient parks at 9.5–11.5%, with long-term income carrying "rent control risk in some states" and transient parks facing "occupancy volatility, commoditized product, limited upside" (RVparked). UnionMetric's expense ratios run 60–65% for transient-heavy parks and 55–60% for long-term and seasonal-heavy ones, and its 100-site model shows a 40% NOI margin at 70% seasonal against 35% at 70% transient (UnionMetric). A seasonal-heavy park may be the more profitable business and the harder one to finance with an SBA loan.
Lender-driven diligence: SBA and commercial requirements
The lender's checklist overlaps the buyer's but runs on its own clock, and the contract needs to account for both. Green Commercial Capital estimates that SBA 7(a) loans close in 60–90 days and 504 loans in 90–120 days from a complete application, with the appraisal taking three to four weeks, the Phase I one to three weeks, and a Phase II adding four to eight weeks. Woodall's reported a 90- to 120-day range for campground SBA loans in 2023. A 30- to 45-day diligence window will expire before most SBA loans are approved.
The SOP 50 10 8.1 rules that bear on an RV park acquisition:
- Operating business: Under SOP 8.1, the applicant must actively run the park. A management agreement giving a third party sole discretion over operations makes the business ineligible; "meaningful oversight" is required. Owner-occupancy of at least 51% applies to existing buildings on SBA Form 1920.
- Appraisal: 7(a) loans over $500,000 require a state-licensed or certified appraiser's report under USPAP dated within 12 months (SBA Notice 5000-19007). The bank must order it as its client; federal rules do not allow a borrower-ordered appraisal (OCC). RV park appraisals run $3,000–$8,000 per Parkvestor and $4,000–$8,000 per RV Park Shop.
- Business valuation: "An internal business valuation is permitted when the Business Purchase Price is $350,000 or less" (SBA Information Notice 5000-882227), up from $250,000 under SOP 8. Above that, an independent valuation from a Qualified Source holding ASA, CBA, ABV, CVA or BCA credentials is required.
- Quality of earnings: Required on 7(a) acquisitions at a business purchase price of $3 million or more from October 1, 2026, and it may not be prepared by or for the seller (Limestone).
- Equity: 10% of total project cost for an initial acquisition, with a seller note counting only if on full standby for the loan term, and limited sources supplying no more than half (analytics.loan). Conventional lenders ask for more: Artz cites 30–35% cash down and Whitworth 20% or more.
- Debt service coverage: The SBA minimum is 1.15, historical and/or projected; Jaken Finance says stabilized parks typically need about 1.25x, and Northeast Campground Brokers reports 1.40–1.65.
- Environmental: Loans up to $250,000 need an Environmental Questionnaire and loans over $250,000 at minimum a Records Search with Risk Assessment (Partner ESI flowchart). Appendix 6 lists NAICS 7212, "RV (REC. VEHICLES) PARKS & RECREATIONAL CAMPS," as a Phase I industry when "fuel tanks are present or if vehicle repair or maintenance is performed onsite," and a Phase I "should always be obtained if the business sells, supplies or dispenses fuel, gasoline, heating oil" (Partner ESI). Reports must be dated within one year of loan-number issuance.
- Feasibility study: 13 CFR 120.160(b) says "SBA may require professional appraisals of the applicant's and principals' assets, a survey, or a feasibility study" (eCFR). A feasibility consultant's reading (a vendor's, since it sells the studies) is that the SOP names no mandatory trigger and lenders order them mainly where underwriting rests on projections. Published prices run $6,000–$9,000 for a 7(a) study and $7,500–$11,000 for 504 from that consultant, $6,200–$12,000 or more from MMCG, and $15,000–$50,000 over four to eight weeks from Sage Outdoor Advisory.
Fitting the two clocks together takes contract language. Rolfe's sample contract uses a 30-day inspection period followed by a separate 30-day financing period, plus an automatic 30-day extension if lender- or buyer-required third-party reports are unfinished. TMC, a 504 lender, says "Many times, the Financing Contingency is around 45 days" (TMC), while a 7(a) guide advises 90 days. Baker Donelson observes that extensions typically come with an additional deposit. MC Law's advice is to get a lender term sheet before the diligence period ends. Reusing reports across lenders requires a reliance letter or reissued report, and lender application deposits of $2,500–$5,000 are returned unexpended if the loan fails through credit-committee rejection.
A 45-day diligence calendar with costs and who to hire
Order the long-lead reports on day one, run the field inspections in the second and third weeks, and hold the go/no-go review at least five business days before the period expires. The sequence below assumes a 45-day period running from complete document delivery:
| Day | Action | Who |
|---|---|---|
| 1 | Order title commitment, ALTA/NSPS survey with Table A items named, and Phase I ESA; send the seller the document request list with a delivery deadline | Title company, surveyor, environmental consultant |
| 1–5 | Submit the lender application; request three years of returns, 12–36 months of bank statements, PMS exports, rent roll, utility bills, permits, leases and deposits | Buyer, lender |
| 5–10 | Request the municipal zoning verification letter and order a third-party zoning report; call each licensing agency about the operating permit | Attorney or buyer |
| 10–20 | Three-way financial tie-out; walk the rent roll site by site for tenancy status | CPA or buyer, attorney |
| 15–25 | Septic pump, camera and hydraulic load test; well sampling; electrical assessment; road and drainage walk | Septic contractor, certified lab, electrician, commercial inspector |
| 20–30 | Phase I draft arrives; decide on Phase II and negotiate an extension if one is needed; lender orders appraisal | Environmental consultant, lender |
| 25–35 | Title and survey review; easement, access and lease analysis; license application prepared | Attorney |
| 30–38 | Repair list priced with quotes; cap rate rerun on verified income and expenses | Buyer, contractors |
| 38–40 | Go/no-go review: proceed, re-trade with a written list, or terminate | Buyer, attorney |
| 40–45 | Written termination notice delivered per the contract if walking, or financing-period extension signed if proceeding | Attorney |
The budget at risk is what the buyer pays whether or not the purchase closes. Published totals vary: RV Park World estimates $5,000–$15,000 for a typical acquisition, and RV Park Shop estimates $13,300–$28,000 for a lender-grade package (RV Park Shop). The line items from the sources above:
| Item | Range | Source type |
|---|---|---|
| Title commitment package | $100–$1,000 | General |
| ALTA/NSPS survey | $3,000–$6,500 (RV-specific); $5,000–$15,000 general commercial | Vendor and general |
| Phase I ESA | $1,900–$5,000 | RV park guide |
| Zoning report | $600–$1,050 | Provider examples |
| Commercial property condition assessment | $1,250–$5,000 | General |
| Septic commercial inspection and report | $800–$2,500 | Contractor |
| Septic camera inspection | $125–$500 | General market |
| Well inspection | $250–$550 | General |
| Electrical assessment | $2,500–$4,000 | Trade press |
| Attorney | $3,000–$5,000 (Campground Investor's RV estimate); $5,000–$15,000 general commercial | Educator and general |
| Appraisal (lender-ordered, buyer-paid) | $3,000–$8,000 | Valuation firms |
An itemized stack of the listed reports and professional fees runs roughly $17,450–$47,550. This exceeds the published totals because some lines overlap and the appraisal is usually lender-ordered. It excludes a Phase II, a feasibility study and lender fees. Campground Investor calls a $3,000–$5,000 attorney fee "trivial insurance against $500,000+ acquisition problems" (Campground Investor). Earnest money comes back if the buyer terminates inside the period; no source in the research says inspection, environmental, survey, legal or appraisal fees are refundable on termination, so treat them as sunk.
Deal killers and how to back out without losing your deposit
Buyers most often end purchases over a missing operating permit, a Phase II that confirms contamination, site counts the zoning will not support, or financials that cannot be reconciled to anything. Rolfe's position on permits is "walk away immediately"; on environmental, a Phase I is "a must" and Phase II results "often lead to the same conclusion: cancel the contract" (Mobile Home University). With no P&Ls or returns, he writes, "you can't get a loan," and the price may need to fall 50–80%. Randy Hendrickson of United Park Brokers wants at least three years of month-by-month P&Ls, and Cook calls incomplete financial data "The Achilles heel for many private park operators." The research does not support treating long-term residents, seller financing or non-conformity as automatic deal killers; each is a pricing and structure question until the lender or the statute says otherwise.
Walking away without losing the deposit depends entirely on how the notice is delivered. Attorney Jason Rittie's standard is "the right to terminate... at any time during the due diligence period upon written notice to the seller" (Einhorn Barbarito). Scott Umstead advises delivering the Notice of Termination to the contract's "Delivery Address" and notes the escrow agent disburses "upon receipt of a signed 'Release' or a court order" (Umstead). The ICSC 2024 sample purchase agreement ends the period at 5:00 pm EST, deems personal delivery received the same day, courier one business day later and certified mail three business days later, names the title company as a notice recipient, and extends a deadline falling on a nonbusiness day to 5:00 P.M. of the next business day (ICSC). The Arizona REALTORS® commercial form (November 2025 sample) requires "a signed notice of the items disapproved," states "VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS," and deems a buyer who fails to give timely notice to have elected to proceed (Arizona REALTORS®).
Courts enforce those mechanics against buyers who miss them.
- Late notice: In Youn v. Emnora Hollister Realty (Tex. App. 2007), a termination due May 29, 2003 was missed, the buyer was deemed to accept the property "as is," and $10,000 of earnest money went to the seller (Justia).
- Asking for more time instead of terminating: The Seventh Circuit in Smart Oil v. DW Mazel (2020) held "An extension is not written notice of disapproval" and affirmed liquidated damages (Midpage).
- Objection after the deadline: River Range v. Citadel Storage (Idaho 2020) treated a title objection sent after the Due Diligence Deadline as late, and the earnest money was nonrefundable (Justia).
- Email that worked: T&B, LLC v. Sambi (Ga. Ct. App. 2026) upheld an email to the sellers and escrow agent on the last day where the contract required only written notice (FindLaw), and Nguyen v. Woodley (Tex. App. 2008) found an email within the financing addendum's twenty days "effectively and immediately terminated the contract."
The pattern across these cases: send signed written notice, to every party and address the contract names, citing a termination right the contract grants, before the stated hour on the stated day, and keep proof of delivery. Escrow release then follows state rules. Under Texas's TREC form, silence for 15 days after a demand lets the agent disburse to the demanding party; Florida's F.S. 475.25 requires conflicting demands to go to an escrow disbursement order, arbitration, interpleader or mediation completed within 90 days; Georgia requires written agreement, interpleader or a court order; North Carolina pays the due diligence fee directly to the seller and makes it nonrefundable, so a cancelling buyer recovers earnest money but not that fee (NCREC). Kepple's panel advice for commercial buyers is to insist that the title company, not the seller or the seller's broker, hold the earnest money, since the refund right "is generally unconditional" during the period (Minnesota CLE).
FAQ
These answers summarize the timing, costs, return benchmarks and legal risks buyers ask about most often.
How long is the diligence period, and when does the clock start?
Thirty to sixty days is the practitioner norm, with 45 days appearing in broker guidance and the Paradise RV Resort contract. The clock runs either from the contract's effective date or from the seller's complete delivery of a named document list; Rolfe and MC Law both recommend the delivery trigger, and sellers reasonably ask that the list be defined up front so the period cannot drift. Write the expiration as a specific hour and date.
Do I get my earnest money back if I walk?
Yes, if you terminate in writing before the period ends and the contract gives an unconditional termination right. After expiration the deposit goes hard. Initial deposits on RV parks run about 1% to 3% of price, often with a second deposit due when diligence expires. Inspection, survey, environmental and legal fees are not refunded.
What is a good ROI or cap rate for an RV park?
It depends on the tier. Yale's June 2026 report shows a 7.14% median cap on 2025 transactions, with bands from 5–7% for premium parks to 10–15% for basic rural ones, and Newmark underwrites Class A and B parks at 8.00% and Class C at 9.00%. Owner-operators on Modern Campground's August 2026 panel look for 9 to 10% because refinancing sits near 6.5–7.25%. Any target should be run on verified NOI after the add-back review, not on the seller's P&L.
What is the 10 year rule?
In RV park usage it is an admission policy that excludes rigs older than about 10 years. A small minority of parks enforce it strictly, while most apply it loosely. It is unrelated to grandfathered zoning. Non-conforming use rights generally pass with the land on sale, but local rules can end them through discontinuance, expansion or major destruction, with periods and thresholds set locally.
What are the Four P's of buying an RV park?
The research found no RV acquisition framework by that name with an identifiable author. The "Four P's" that do appear are the marketing mix (product, price, place, promotion) in RV park business-plan templates, which the American Camp Association's Camping Magazine calls the "Classic Ps" in use since the 1940s (Camping Magazine), and an outdoor-tourism variant, "Passion, Permitting, People, and Profit," from Zeb Smith on the Watersport podcast. Neither replaces the six diligence categories above.
What do inspectors and reports cost?
An itemized set of reports and professional fees can run roughly $17,450 to $47,550, although some lines overlap and the appraisal is usually lender-ordered. A Phase II adds $8,000 to six figures, and a feasibility study adds $6,000 to $50,000 if the lender wants one. Individual water tests in the examples above run $15–$41.
What kills a deal?
No operating permit and no path to one; a Phase II confirming contamination; more sites in use than the zoning allows; and financials that cannot be tied to returns and deposits. Deferred infrastructure, long-term residents and seller financing are pricing and structure questions rather than automatic exits.
How risky are long-term residents?
Risky enough to review one site at a time. Past a state threshold that ranges from 30 days in California to 180 in Arizona and six months in Florida, a guest may hold tenant protections with notice periods of 30 to 90 days plus a court process. Long-stay revenue also counts against the SBA's requirement that more than half of prior-year revenue come from stays of 30 days or less, even though long-term parks often carry lower expense ratios and lower cap rates.
Dirt Ventures acquires and operates RV parks and campgrounds as a long-hold buyer. If you are beginning to think about what comes next for your park, start a conversation at /inquire. You do not need to have the timing or structure figured out. If email is easier, write to George at george@dirt.ventures and tell us a little about your park.