RV Park Running Costs: $46K Monthly, 25 Months to Breakeven

RV Park Running Costs

Expect high initial overhead Based on 2026 projections, average monthly running costs for the RV Park are around $46,175, driven heavily by fixed expenses like the $15,000 property loan payment and $16,750 in monthly payroll Total projected revenue for 2026 is $450,000, averaging $37,500 per month This means the park operates at a loss initially, reflected by a Year 1 EBITDA of -$135,000 You must budget for significant working capital to cover the gap until the projected January 2028 break-even date The biggest lever you have is maximizing site occupancy and controlling the $3,500 monthly maintenance budget

7 Operational Expenses to Run RV Park

#	Operating Expense	Expense Category	Description	Min Monthly Amount	Max Monthly Amount
1	Loan Payment	Fixed Overhead	The largest fixed cost is the $15,000 monthly property loan payment, which must be covered regardless of occupancy rates.	$15,000	$15,000
2	Payroll	Fixed Overhead	Payroll totals $16,750 per month in 2026, covering 4 FTEs including the Park Manager and Maintenance Technician.	$16,750	$16,750
3	Grounds Upkeep	Fixed Overhead	Budget $3,500 monthly for routine property maintenance, including grounds, utilities, and amenity upkeep.	$3,500	$3,500
4	Guest Utilities	Variable Cost	Utilities tied directly to guest usage cost about 35% of total revenue, averaging $1,313 per month in 2026.	$1,313	$1,313
5	Advertising	Fixed Overhead	A fixed $2,500 is allocated monthly for marketing and advertising to drive site bookings and increase occupancy.	$2,500	$2,500
6	Compliance Costs	Fixed Overhead	Fixed costs include $2,000 monthly for property insurance plus $200 for annual business licenses and permits.	$2,017	$2,017
7	Store COGS	Variable Cost	Costs of Goods Sold (COGS) for the store and propane total 90% of revenue, averaging $3,375 monthly in 2026.	$3,375	$3,375
	Total	All Operating Expenses		$44,455	$44,455

What is the total minimum monthly running budget required to sustain the RV Park before achieving break-even?

The minimum monthly budget required to sustain the RV Park before earning enough revenue to cover costs sits at $46,175, which is your operational burn rate that you must cover with cash reserves, and you can check What Is The Current Customer Satisfaction Level For RV Park? to gauge initial market reception. Honestly, this figure represents your immediate cash burn rate, so securing a runway buffer above this is defintely critical for stability.

Burn Rate Baseline

Fixed costs drive the $46,175 baseline monthly expense.
The property loan is the single largest fixed overhead component.
A 6-month runway buffer means needing $277,050 cash on hand minimum.
This budget covers current operations but excludes initial capital expenditure payback.

Immediate Cash Focus

Aggressively negotiate the property loan terms before opening day.
Variable costs, like utilities, must stay below 15% of gross revenue.
Focus initial outreach on securing long-term site rentals first.
Track daily utility consumption closely; it directly impacts variable spend.

Which expense categories represent the largest recurring costs and how can they be optimized?

For the RV Park, the largest recurring costs are the $23,800 in fixed overhead and $16,750 in payroll, and assessing operational efficiency is crucial to profitability, much like understanding if the RV Park business is currently generating sufficient profitability to sustain growth Is The RV Park Business Currently Generating Sufficient Profitability To Sustain Growth?.

Fixed Cost Structure Review

Total fixed costs hit $40,550 monthly before variable operating expenses.
Payroll, at $16,750, demands scrutiny for efficiency gains.
Analyze if administrative tasks can be shifted to technology or reduced staffing levels.
Ensure the $23,800 overhead covers only mission-critical items right now.

Optimizing Maintenance and Utilities

The $3,500 monthly maintenance budget is a key area for optimization.
Compare the cost of internal staff versus outsourcing specialized repairs to cut fixed labor.
Utility usage must be tracked by zone to identify leaks or inefficient common area lighting.
If onboarding takes longer than expected, churn risk rises defintely.

How much working capital cash buffer is necessary to cover operating deficits until profitability?

The minimum working capital buffer required for the RV Park to survive projected operating deficits until the January 2028 break-even point is $502,000, a figure that must account for inherent seasonal revenue dips. This cash runway calculation is crucial for managing liquidity during the initial ramp-up phase.

Required Cash Runway

Minimum cash needed to cover losses until January 2028 is $502,000.
This buffer covers cumulative negative cash flow during the initial operational period.
Seasonality risks, especially slow winter occupancy, significantly inflate this requirement.
Understanding typical earnings helps gauge the scale of this initial burn rate; check out How Much Does The Owner Of An RV Park Typically Earn? for context.

Shortening the Deficit Period

Aggressively push monthly site rentals to lock in predictable revenue streams early.
Maximize ancillary income streams like laundry usage and propane refills immediately.
Delay non-essential site upgrades until Q2 2027 to preserve operating cash.
If site onboarding takes 14+ days, churn risk defintely rises, extending the required cash runway.

If site occupancy revenue is 20% lower than projected, what cost structure adjustments can be made immediately?

If your RV Park occupancy revenue is 20% lower than projected, you're facing an immediate cash crunch requiring surgical cuts to overhead and a review of fixed debt obligations; before digging deeper into the underlying drivers, see if the RV Park business model generally supports growth right now by reading Is The RV Park Business Currently Generating Sufficient Profitability To Sustain Growth?

Staffing Review for Immediate Savings

Immediately review the 15 FTE Front Desk positions for overlap.
Assess necessity for all 5 FTE Groundskeeper roles today.
Can coverage be shifted to part-time staff immediately?
Target a minimum reduction of 2-3 FTEs if possible.

Variable Spend and Capital Structure

Scrutinize the $2,500 monthly marketing spend for zero ROI.
Cut any campaign not directly driving bookings next week.
Contact lenders today to discuss deferring interest payments.
Negotiate new payment terms to lower required monthly cash outflow.

Key Takeaways

The average projected monthly running cost for the RV Park business in 2026 totals $46,175, heavily influenced by fixed overhead expenses.
The business faces a significant cash deficit, requiring approximately 25 months of operations to reach the projected break-even point in January 2028.
The largest single fixed cost component demanding immediate coverage is the $15,000 monthly property loan payment, regardless of occupancy levels.
Maximizing site occupancy is identified as the primary operational lever to offset the high recurring expenses and cover the projected Year 1 EBITDA loss of -$135,000.

Running Cost 1 : Property Loan Payment

Loan Payment Dominance

Your property loan payment is the primary fixed liability you face every month. This $15,000 payment must be made before you cover staff or marketing, making occupancy targets critical. It drives your minimum required revenue baseline.

Cost Structure Input

This $15,000 monthly payment covers the principal and interest on the land acquisition or building financing for the resort. It is entirely fixed, unlike variable costs like Guest Utilities, which run at 35% of revenue. You need the finalized loan amortization schedule to forecast this accurately.

Covers property debt service.
Fixed regardless of bookings.
Input is the loan agreement.

Managing Debt Risk

You can't easily cut this cost post-closing, but you manage the risk of missing payments. Focus on securing long-term, high-yield bookings early on, like the snowbird market. Defintely avoid over-leveraging the initial purchase price to keep debt service manageable.

Target long-term guests first.
Avoid refinancing too soon.
Keep debt service coverage high.

Break-Even Driver

Because this $15,000 loan payment dwarfs the $3,500 maintenance budget, your break-even point is high. If occupancy dips, this debt service will quickly consume operational cash flow, demanding immediate cash reserves to stay afloat.

Running Cost 2 : Staff Wages

Fixed Payroll

Your 2026 monthly payroll commitment is fixed at $16,750 for four full-time employees (FTEs). This covers essential on-site roles, specifically the Park Manager and the Maintenance Technician. This figure represents a significant, predictable overhead component for running the resort smoothly.

Staffing Build

This $16,750 monthly wage expense is a fixed operating cost for 2026. It accounts for four FTEs needed to manage daily operations, site readiness, and guest services. To verify this estimate, you need firm salary quotes for the Park Manager and the Maintenance Technician, plus associated employer taxes and benefits burden.

Wage Control

Managing this fixed cost means avoiding unnecessary headcount creep; four FTEs seems lean for a resort. Keep job descriptions tight to prevent scope creep, which forces unplanned overtime or new hires. Defintely, if onboarding takes 14+ days, churn risk rises, increasing hiring costs.

Overhead Weight

Wages are your second-largest fixed overhead after the property loan payment of $15,000 monthly. This means you need high revenue density to cover these commitments. If occupancy dips, these fixed labor costs eat cash fast, so monitor utilization closely.

Running Cost 3 : Maintenance and Repairs

Routine Upkeep Budget

Routine property upkeep is a defintely non-negotiable fixed cost for the RV park. You must budget $3,500 monthly to cover grounds care, shared utility consumption, and amenity maintenance. This amount keeps the resort appealing to snowbirds and digital nomads expecting high standards.

Maintenance Cost Breakdown

This $3,500 estimate covers essential upkeep like landscaping, pool service, and bathhouse cleaning. It is a fixed operating expense, unlike guest utilities which float with occupancy. Compare this to your $15,000 loan payment; maintenance is about 20% of your largest fixed liability.

Covers grounds, utilities, and amenities.
Fixed monthly expense.
Essential for guest experience.

Managing Repair Spending

Avoid letting small issues become huge capital repairs. A proactive maintenance schedule cuts emergency spending significantly. Don't defer landscaping contracts; messy grounds immediately signal poor management to high-paying guests. If you hire one FTE for maintenance, this $3,500 budget should shrink over time.

Cost Tracking

If your grounds crew is part of the $16,750 staff wage budget, ensure you track their hours against this $3,500 line item. If actual spending consistently exceeds this, you need to raise site rates or reduce variable costs elsewhere, perhaps by renegotiating the 90% COGS for store inventory.

Running Cost 4 : Guest Utilities

Guest Utility Burden

Guest-tied utilities are a significant variable expense, hitting 35% of projected revenue in 2026. This averages out to about $1,313 monthly based on current revenue assumptions. Managing occupancy and usage efficiency is key to controlling this cost line. Honestly, this is defintely higher than typical fixed overhead.

Calculating Usage Costs

This cost covers metered electricity and water usage directly attributed to occupied RV sites. To forecast accurately, you need projected site revenue and the assumed 35% utility ratio. If revenue shifts, this line item moves with it; it isn't a fixed overhead like the $15,000 property loan payment.

Inputs: Site occupancy rate
Inputs: Average utility rate per site
Inputs: Total projected monthly revenue

Controlling Variable Spend

Since this is usage-based, focus on site metering and efficiency standards. Common mistakes include bundling all utilities into the nightly rate, which hides true consumption. You can realistically aim to reduce this ratio below 35% by installing low-flow fixtures or enforcing stricter site energy caps for long-term guests.

Benchmark against parks with smart metering
Audit water heater efficiency annually
Set usage thresholds for monthly renters

Utility vs. COGS Weight

Compare this 35% variable cost to the 90% Inventory and Propane COGS, which averages $3,375 monthly. While COGS is higher, utilities are controllable via guest behavior and infrastructure upgrades. This cost line requires operational oversight, unlike the fixed $2,500 marketing budget.

Running Cost 5 : Marketing Budget

Fixed Marketing Spend

The fixed $2,500 monthly marketing allocation is essential for driving occupancy at the RV resort. This budget needs to efficiently convert awareness into paying guests to cover significant fixed overheads like the $15,000 property loan payment. Success depends on measuring the cost per acquisition (CPA) against the average daily rate (ADR).

Budget Inputs

This $2,500 covers advertising spend aimed at digital nomads and snowbirds seeking long-term stays. To validate this cost, you must track bookings directly attributable to these campaigns. The goal is ensuring incremental revenue from new bookings significantly outweighs this fixed monthly outlay.

Track cost per click (CPC) benchmarks.
Set a target occupancy rate goal.
Estimate booking conversion rates.

Spend Efficiency

Optimize this spend by focusing dollars where the highest lifetime value (LTV) guests reside, like retirees booking 3-month winter stays. Avoid broad, untargeted ads; that’s usually a waste of capital. A common mistake is spreading the budget too thin across too many channels, defintely reducing impact.

Prioritize search ads for 'full hookup RV sites.'
Test social media ads for weekend adventurers.
Track ROI per booking source monthly.

Occupancy Link

If this $2,500 fails to move occupancy past the break-even point, the entire operational model tightens quickly. Given staff wages are $16,750 and the loan is $15,000, marketing must generate immediate, measurable booking volume to justify its existence.

Running Cost 6 : Insurance and Licenses

Insurance Overhead

Property insurance runs $2,000 monthly, forming a core fixed overhead for the RV Park. You also budget $200 annually for required business licenses and permits to stay compliant. These costs must be covered every month, regardless of how many RVs are parked.

Cost Inputs

Property insurance protects your physical assets, like bathhouses and laundry facilities, against major loss. You need quotes to set the $2,000 monthly figure accurately. The $200 license fee covers local and state operational permissions. These are non-negotiable fixed expenses sitting just above inventory COGS in your overhead structure.

Insurance: $2,000/month fixed.
Licenses: $200/year prorated.
Covers physical asset protection.

Managing Compliance Costs

Insurance costs fluctuate based on coverage limits and deductible selection. Shop your property policy annually; bundling liability coverage can yield savings. Avoid letting licenses lapse; penalties add unexpected fixed costs. For permits, confirm the jurisdiction requirements early to prevent delays during opening.

Shop insurance quotes yearly.
Review deductibles versus premium.
Pay license fees early.

Fixed Cost Reality

While $2,200 monthly seems small next to the $15,000 loan payment, these fixed costs drive your minimum viable revenue target. If occupancy is low, these mandatory payments quickly erode contribution margin before staff wages even hit the books. This is defintely non-deferrable spending.

Running Cost 7 : Inventory and Propane COGS

COGS Eats 90%

Your Costs of Goods Sold (COGS) for the camp store and propane refills are heavy hitters, consuming 90% of related revenue. In 2026 projections, this line item hits $3,375 monthly. This margin profile means operational efficiency in sourcing and inventory management is non-negotiable for profitability.

Tracking Store Inventory Costs

This cost covers direct materials for the camp store (snacks, drinks, supplies) and the wholesale cost of propane purchased for resale. Inputs require tracking retail sales volume against wholesale purchase prices, ensuring accurate inventory valuation, like using First-In, First-Out (FIFO). Here’s the quick math needed:

Store unit sales volume.
Wholesale unit cost for propane.
Target gross margin percentage.

Controlling Variable Product Costs

Managing 90% COGS means aggressive vendor negotiation and tight inventory control to prevent shrink, which is inventory loss. Since this cost is variable, focus on improving gross margin by raising prices or finding cheaper suppliers for high-volume items. You must defintely watch these levers:

Negotiate bulk discounts for store goods.
Track propane loss during transfers.
Increase retail markup on low-cost items.

Margin Pressure Point

A 90% COGS ratio is standard for retail operations, but it leaves little room for error when stacked against your fixed costs like the $15,000 loan payment. If the projected $3,375 monthly spend relies on aggressive sales targets, watch inventory shrink closely. Poor pricing will eat up the small margin you have left.