Understanding Campground Appraisals

What is a Campground Appraisal?

A campground appraisal provides an independent estimate of market value for properties used for camping, RV parks, glamping resorts, and seasonal lodges. These appraisals consider land value, business income, amenities, and infrastructure, making them more complex than standard real estate valuations.

Campgrounds are appraised for financing, buying, selling, tax assessments, lease agreements, investment analysis, and legal matters related to recreational and hospitality operations.

Key Factors in Campground Appraisals

• Location & Market Demand – Proximity to tourist destinations, national parks, lakes, highways, and outdoor recreation areas impacts desirability.

• Property Size & Zoning – Total land area, number of campsites, permitted land use, and expansion potential.

• Revenue & Occupancy Trends – Seasonal vs. year-round operations, peak-season demand, and revenue per site.

• Amenities & Infrastructure – Power, water, and sewer hookups, washroom and shower facilities, recreational features, store or restaurant buildings.

• Comparable Sales & Leasehold Considerations – Market trends for similar campgrounds, RV parks, and seasonal resorts.

• Business Operations & Management – Revenue from campsites, RV hookups, cabin rentals, general store, boat rentals, and other services.

• Environmental & Land Use Restrictions – Floodplain risks, Crown land leases, First Nations land agreements, or protected environmental areas.

Approaches to Value in Campground Appraisals

1. Income Approach (Capitalization of Earnings) – Primary Method

   • Determines value based on Net Operating Income (NOI) from campsite rentals, amenities, and secondary income sources.

   • Uses capitalization rates (CAP rates) derived from comparable campground sales.

   • If financial records are limited, industry benchmarks and market assumptions are applied.

2. Direct Comparison Approach (Used for Market Trends & Sales Comparisons)

   • Compares the subject property to recently sold campgrounds and RV parks.

   • Adjustments made for site quality, location, amenities, and revenue performance.

3. Cost Approach (Used for Unique or New Campgrounds)

   • Estimates value based on the replacement cost of buildings, infrastructure, and land improvements, minus depreciation.

   • Useful for newer properties, purpose-built resorts, or properties with significant recent upgrades.

When is a Campground Appraisal Needed?

• For Mortgage Financing & Refinancing – Required by lenders to assess loan security based on revenue and real estate value.

• For Buying or Selling a Campground – Establishes fair market value for transactions.

• For Business & Investment Planning – Determines asset value for partnerships, expansions, or rebranding.

• For Tax Assessments & Appeals – Ensures property taxes reflect actual market conditions.

• For Lease Renewals & Negotiations – Supports fair lease rates on leased Crown land or First Nations settlement land.

• For Legal & Estate Settlements – Valuation for ownership transfers, divorce, or estate planning.

What is Included in a Campground Appraisal?

• Land & Site Analysis – Location, acreage, zoning, permitted uses, and environmental factors.

• Revenue & Financial Review – Income from campsite rentals, cabin bookings, RV hookups, and other services.

• Comparable Campground & RV Park Sales – Market data on similar properties, adjusted for performance differences.

• Amenities & Infrastructure Evaluation – Electrical, water, and sewer systems, along with recreational features.

• Brand & Management Considerations – Franchise agreements, loyalty programs, and marketing impact.

• Final Market Value Estimate – Professional assessment based on income potential, market trends, and property condition.

Challenges in Campground Appraisals

• Seasonal Revenue Variability – Many campgrounds in Yukon and other northern regions operate seasonally.

• Business-Dependent Valuation – Campground value is tied to management, tourism trends, and operating efficiency.

• Crown & First Nations Leasehold Land – Some campgrounds operate on leased land, affecting long-term value and financing options.

• Aging Infrastructure & Capital Requirements – Older properties may require significant investment in water, sewer, and electrical upgrades.

Why is a Campground Appraisal Important?

• Determines True Market Value – Integrates real estate, business income, and operational costs for a full valuation.

• Supports Financial & Investment Decisions – Helps owners, lenders, and investors assess property performance.

• Ensures Competitive Market Positioning – Compares pricing and revenue potential with similar properties.

• Aids in Loan Approval & Asset Management – Lenders and financial institutions require professional valuations.

A professionally conducted campground appraisal ensures accurate, data-driven valuations, providing essential insights for buyers, sellers, investors, and lenders.