RV parks and campgrounds represent a unique slice of commercial real estate - part hospitality, part real estate, with a healthy dose of outdoor recreation thrown in.
The RV and camping industry has seen tremendous growth, especially post-pandemic. But financing these properties requires understanding their unique characteristics.
Let me walk you through everything you need to know.
Why RV Parks and Campgrounds Are Different
Here’s what makes these properties unique:
Seasonal operations. Unless you’re in a warm climate year-round, your peak season might be just 4-6 months. Cash flow is concentrated.
Mix of short-term and long-term stays. Some parks have mostly transient RVers (one or few nights). Others focus on seasonal or annual sites. Each model has different economics.
Infrastructure requirements. Electrical hookups, water and sewer connections, roads, bathhouses, pools, recreation facilities - these are significant capital investments.
Location dependency. You need to be either a destination unto yourself or on the route to popular destinations.
Management intensity. Successful parks require active management - maintenance, customer service, activities, marketing.
Strong income potential. Well-located, well-run parks can generate excellent returns with relatively predictable demand.
Types of RV Parks and Campgrounds
Let’s break down the categories:
Transient RV Parks
Parks catering to travelers - one to few nights stays. Located along highways or near tourist attractions.
Revenue is higher per site but requires active marketing and management.
Destination Campgrounds/Resorts
Properties that are destinations themselves - on lakes, near attractions, with extensive amenities. Guests stay for weeks.
Higher development costs but can command premium rates.
Seasonal/Annual Sites
Parks where most sites are rented by the season or year. RVers leave their units there all summer.
More predictable income but lower per-site revenue than transient.
Mixed Model Parks
Combination of transient, seasonal, and sometimes park model/cabin rentals. This diversifies risk and maximizes revenue.
Most common and often most successful model.
Primitive/Rustic Campgrounds
Basic camping with minimal services. Lower development costs but also lower revenue.
Typically smaller operations, harder to finance.
Glamping/Luxury Camping
High-end camping experiences with upgraded accommodations and amenities.
Growing niche but requires significant investment.
What Lenders Look For
Here’s what makes lenders comfortable with RV park financing:
Operating History and Occupancy
Lenders want to see 2-3 years of financial statements showing:
- Site occupancy by month
- Revenue per available site (RevPAS)
- Breakdown of transient vs. seasonal income
- Off-season performance
- Operating expenses
- Net operating income
Strong parks achieve 70-85%+ occupancy during peak season and have strategies for shoulder and off-season revenue.
Revenue Diversification
Successful parks don’t rely solely on site rental. Additional revenue from:
- Firewood and propane sales
- Camp store
- Laundry facilities
- Recreation fees (pools, game rooms, equipment rentals)
- Cabin or park model rentals
- Activity programs
This diversification reduces seasonal risk and improves margins.
Property Quality and Infrastructure
Lenders assess:
- Number and types of sites (full hookup, water/electric, tent sites)
- Electrical capacity (30amp vs. 50amp)
- Water and sewer systems
- Road condition and layout
- Buildings (office, bathhouse, recreation hall, store)
- Amenities (pool, playground, recreation facilities)
- Overall condition and maintenance
Well-maintained parks with modern infrastructure are much easier to finance.
Location and Market
Where is the park? Key considerations:
- Proximity to destinations or attractions
- Highway access and visibility
- Natural features (waterfront, wooded, mountain views)
- Regional tourism patterns
- Competition analysis
Parks near national parks, attractions, or on popular routes perform best.
Management Plan
RV parks require active management. Lenders want to see:
- Your experience with RV parks or hospitality
- Staffing plan (many parks are owner-operated with seasonal help)
- Marketing strategy
- Maintenance program
- Customer service approach
Strong management makes the difference between mediocre and excellent performance.
Financing Options
Let’s talk about where to get RV park financing:
Traditional Banks
Some banks finance RV parks but it’s specialized. They want:
- Established parks with 3+ years operating history
- Strong occupancy and revenue
- Good locations in active RV markets
- Experienced operators
- Properties in good condition
Expect 60% to 70% LTV at rates of 6.5% to 8%.
Credit Unions
Regional credit unions in tourism areas often understand RV parks well. They see the local tourism economy and may be more comfortable than big banks.
Private Lenders
Private lenders finance RV parks when:
- Operating history is limited
- Occupancy is building
- Property needs improvements
- Operator lacks experience
Expect rates of 9% to 14%, LTV up to 65%, and terms of 1 to 3 years.
Seller Financing
Common in RV park sales. Sellers understand financing challenges and are often willing to carry a note.
Can be primary financing or supplement bank financing.
SBA Lending (U.S. only)
Not applicable in Canada but popular for U.S. RV park financing.
Interest Rates and Terms in 2026
Here’s what we’re seeing for RV park financing in early 2026:
Well-performing parks with experienced operators:
- Interest rates: 6.5% to 7.5%
- Loan-to-value: 65% to 70%
- Terms: 5 to 7 years
- Amortization: 20 to 25 years
Good parks with decent fundamentals:
- Interest rates: 7.5% to 9%
- Loan-to-value: 60% to 65%
- Terms: 5 years
- Amortization: 20 years
Parks with challenges or limited history:
- Interest rates: 9% to 14%
- Loan-to-value: 55% to 65%
- Terms: 1 to 3 years with private lenders
- Amortization: 15 to 20 years
RV parks typically require 30-40% down due to seasonal nature and specialized use.
Documents You’ll Need
Operating Information
- Last 3 years of financial statements
- Monthly occupancy by site type
- Revenue breakdown (sites, store, activities, etc.)
- Detailed expense breakdown
- Registration/reservation data
- Customer demographics
- Marketing materials and strategy
Property Information
- Site inventory (number, types, hookup capacities)
- Infrastructure details (electrical capacity, water/sewer systems)
- Building inventory and conditions
- Amenity list
- Recent capital improvements
- Deferred maintenance assessment
- Property tax and insurance
Market Analysis
- Regional tourism statistics
- Competing RV parks and campgrounds
- Occupancy and rate comparisons
- Area attractions and draws
- Seasonal patterns
- Growth trends in RV travel
Management
- Resume showing RV park or hospitality experience
- Staffing plan
- Operating procedures
- Customer service approach
The more detailed your occupancy and revenue data by season, the better lenders can evaluate your park.
Strategies for Different Scenarios
Acquiring Established RV Park
You’re buying an operating park with history and occupancy.
Strategy: Emphasize:
- Operating performance and occupancy trends
- Your hospitality or RV park experience
- Improvement opportunities you’ve identified
- Market position and advantages
With good numbers and experience, expect 65-70% LTV.
Developing New RV Park
Building an RV park from scratch.
Strategy: New development financing requires:
- Detailed feasibility study and market analysis
- Complete site plans and infrastructure design
- Development budget (including utilities, roads, hookups)
- Operating pro forma
- 40-50% equity
- Experience with RV parks or strong partners
New park development is challenging to finance - most lenders prefer existing operations.
Expanding Existing Park
Adding sites or amenities to operating park.
Strategy: Expansion financing for established park owners:
- Show successful current operations
- Detailed expansion plans and costs
- How expansion improves profitability
- 30-40% equity for expansion
Your track record makes this easier than new development.
Buying Park Needing Improvements
The park operates but has deferred maintenance or outdated facilities.
Strategy: Value-add approach:
- Specific improvement plan (electrical upgrades, site improvements, amenity additions)
- Budget and timeline
- How improvements increase occupancy or rates
- Projected returns
- 40-45% equity
Start with private financing, make improvements, refinance once improved.
Common Mistakes to Avoid
Mistake 1: Underestimating Seasonal Cash Flow
If you make 70% of revenue in 4 months, you need excellent cash management to cover off-season expenses.
Mistake 2: Poor Infrastructure Planning
Electrical capacity is critical. Underpowered sites can’t accommodate modern RVs with multiple ACs and appliances.
Mistake 3: Inadequate Maintenance
RV parks require constant maintenance - sites, roads, buildings, utilities. Deferred maintenance shows quickly.
Mistake 4: Wrong Location
“If you build it they will come” doesn’t work. Location is critical - you need to be on the way to somewhere or be a destination yourself.
Mistake 5: Ignoring Customer Experience
RV park guests have choices. Great customer service, clean facilities, and good amenities drive positive reviews and repeat business.
Regional Considerations
RV park markets vary across Canada:
British Columbia
Longer season in coastal areas, strong tourism, beautiful scenery. High land costs but strong demand.
Alberta
Shorter season but strong domestic tourism. Banff/Jasper areas are premium. Other areas serve regional markets.
Ontario
Large market serving GTA campers and U.S. travelers. Muskoka, Kawarthas, Ottawa Valley are strong areas.
Quebec
Strong camping culture. Many established campgrounds. Language considerations for marketing.
Atlantic Canada
Growing tourism, beautiful coastal and inland locations. Shorter season but loyal customer base.
Prairie Provinces
More limited markets focused on lakes and specific destinations. Shorter season.
Making Your Deal More Attractive
Show Strong Occupancy Data
Detailed occupancy records showing high utilization during season and strategies for shoulder season.
Demonstrate Revenue Diversification
Multiple income streams beyond just site rental show sophisticated operation.
Document Customer Satisfaction
Reviews, repeat guest percentages, testimonials - show you provide great customer experience.
Have Infrastructure in Good Shape
Well-maintained electrical, water, sewer systems. Clean bathhouses. Good roads. This dramatically improves financing prospects.
Bring Relevant Experience
RV park or hospitality industry experience makes a huge difference. If lacking, partner with someone experienced.
The Growth of RV Travel
The RV industry has seen strong growth. Baby boomers retiring with time and money to travel. Younger families discovering RV camping. The pandemic accelerated interest in outdoor recreation.
This creates opportunities for well-located, well-operated RV parks. Lenders are increasingly aware of strong industry fundamentals.
The shift toward remote work is also interesting - some RVers are living and working from RV parks, creating demand for extended stays and better WiFi.
The Future of RV Park Financing
As the RV industry matures and data accumulates, lenders are becoming more comfortable with RV park financing.
Parks that invest in modern infrastructure, offer great customer experiences, and market effectively will continue attracting financing.
The key is working with lenders who understand RV parks rather than treating them as exotic specialty properties.
Ready to Finance Your RV Park or Campground?
At Creek Road Financial Inc., we work with lenders who specialize in RV parks and campgrounds. These properties require understanding of both hospitality operations and seasonal real estate.
Whether you’re acquiring an established park, developing new, or improving an existing facility, we can help identify appropriate financing.
We understand the occupancy patterns, infrastructure requirements, and operational aspects of RV parks, allowing us to present your opportunity effectively to lenders.
Contact Creek Road Financial Inc. today. Let’s discuss your RV park or campground financing needs. The outdoor recreation industry is strong - let’s help you succeed in it.