Understanding RV Park Net Operating Income

Revenue lines buyers separate

• Monthly or long-term site rent
• Nightly and weekly transient site revenue
• Seasonal site contracts
• Cabin, park model, or glamping unit revenue
• Utility reimbursements and submetered electric
• Storage income (RV, boat, trailer)
• Store, laundry, propane, firewood, and activity income
• Late fees and application fees

Operating expenses that belong in NOI

• Property taxes and insurance
• Utilities not reimbursed by guests
• Payroll, contract labor, and management
• Repairs and routine maintenance
• Landscaping, trash, pest control
• Marketing, booking platform fees, and merchant processing
• Software, internet, phone, and office costs
• Professional fees (accounting, legal)

What buyers exclude

Mortgage interest and principal, depreciation, income taxes, owner personal expenses, and one-time capital improvements are excluded from NOI. Capital items are handled separately, usually as a reserve or as a price adjustment.

Common adjustments

• Adding a market management expense at owner-operated parks
• Adding a replacement reserve for pads, roads, and utility systems
• Removing one-time revenue such as a single large event or insurance proceeds
• Normalizing insurance or taxes if a reassessment is likely after a sale
• Separating income from any on-site residence used by the owner

How to present NOI credibly

Provide monthly figures for at least twenty-four months if you can, plus tax returns. Monthly data lets a buyer see seasonality clearly, which usually helps a well-run seasonal park rather than hurting it.