All right in our last session, we talked about weekly rates, and let’s now talk about monthly rates. I’m Donna Bordeaux with CampgroundAccounting.com. Monthly rates, and how much should they be?
Well first off, if your campground is at a high occupancy rate, if it’s a busy time of the year, you shouldn’t have a big discount for staying on a monthly rate, it doesn’t help you. And I have heard the argument, I know. Then on a monthly rate, you have to pay the electric, oh boy, you’re just getting a reimbursement it’s not really helping you that much.
So look at your monthly rates, I was at another park. Their monthly rate was 10 and a half days of equivalent daily rate way too low folks. That means if I’m going to say 11 days, I should just book out the whole month and clog up your park and not let you rent it to somebody else, that’s crazy. Don’t do that.
Make sure that your monthly rate, if you have to have one because you are not at capacity is still in the neighborhood of about 15 to 18 days of the daily rate. You want to make sure that you are not cutting yourself short and even then compare if it’s your high season, don’t offer a monthly rate, only offer the daily, be very choosy about how you utilize that or make it a higher amount of days in your peak season, to where it’s more like 20 days of the daily rate.
Take a look at how your rate structures are set and make sure that they do make sense for you. I’m Donna Bordeaux with CampgroundAccounting.com.
Donna Bordeaux, CPA with Campground Accounting
What happens when you send two CPAs out into the relaxing outdoors to camp? You get CampgroundAccounting.com. Donna and Chad have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They camp and travel across the country every chance they get, so it’s just a natural fit that they focus their CPA skills on helping campground owners throughout the USA grow their businesses and minimize the impact of taxes. They understand the key performance indicators and specialized issues that face RV park owners every day.