Any serious buyer should insist on a minimum of three years of operating figures. One year alone cannot represent the true performance of a seasonal property. By taking multi-year averages, you see:
- Seasonal shifts smoothed out
- Inflation or rate changes over time
- One-off events that either boosted or hurt occupancy
Annualizing a strong month or a weak month is a shortcut that usually ends in expensive mistakes.
Expenses Need to Be Clean Before They Are Useful
Expenses often include items that represent unusual, temporary, or non-property costs. Before you rely on them, clean the line items.
Examples of what must be removed:
- A personal vehicle run through repair and maintenance
- Upgrades that will not repeat annually
Once you remove the noise, average those expenses over the same three-year period. An electricity bill, for instance, may swing year to year. The average becomes the best estimate for future budgeting.
Look for Proof of Occupancy
Revenue sheets show one story. Utility use shows another. Systems like electrical meters, water use, and Wi-Fi data can all confirm (or contradict) what an owner claims. When occupancy rises, utilities rise. When utilities stay low, occupancy was likely low.
These independent clues are essential when you are not able to physically observe each season.
Walk the Property and Match Reality to the Paperwork
Site visits should not feel disconnected from the financials you reviewed. If the owner claims strong summer figures but you arrive during peak season and only a few sites are filled, something needs explanation.
What to check during your visit:
- Condition and usability of pads
- Visibility and access from main roads
- Any changes to the surrounding area that may shift demand
Financials should feel believable when you see the park in person.
Trust Your Judgment
Numbers are powerful tools, but not the only ones. If the location feels wrong, the offering feels stretched, or the story does not add up, listen to that reaction. You are evaluating a living business, not just a spreadsheet.
If you are uneasy on the front end, that rarely improves once you own it.
Keep the Focus on Replicable Results
The goal of underwriting is not to prove a seller right. It is to determine what you can confidently operate moving forward. The most reliable budgets come from:
- Verified historical figures
- Realistic projection of what you can maintain or improve
Those two pieces allow you to build a purchase structure that protects you from negative surprises.
The Value of a Disciplined Review Process
When buyers standardize their review process, clean the data, and rely on evidence instead of guesswork, they gain a clear picture of how the property will perform under their leadership. Careful revenue evaluation helps ensure that you enter ownership with confidence rather than hope — and that is the foundation investors are truly looking for.