08/31/2026
Long Term Stays Are Not Free Money
Transient bookings have softened in a lot of markets this year. So owners are looking at the back rows, pricing out a monthly rate, and deciding whether to convert.
Sometimes that is exactly right. I have helped properties make the move and I would do it again.
But it is a trade, and most owners are only pricing one side of it. That is truest at destination and event driven properties, where a handful of weekends carry the year.
Start by Naming Which Product You Are Selling
Monthly, seasonal and annual are three different businesses, and owners use the words interchangeably.
Rolling monthly is the weakest floor, the easiest to reprice, and the best protection for your peak. Seasonal is usually prepaid or on installments with a defined end date, which makes it the best working capital of the three. Annual carries the heaviest infrastructure load and the highest legal exposure, and the site is often unsellable even when the resident is gone for three months.
Decide which one you are building before you price it.
What You Are Actually Buying
A revenue floor. Money that shows up whether or not the weather holds, whether or not diesel spikes, whether or not the festival gets cancelled.
And a real cost reduction, which is the half of this that critics of long term conversion leave out. Fewer turns. Less check in labor. No merchant fee or channel commission. No marketing spend to refill that site next weekend. No cancellations, no no shows, and less damage from somebody who has to live with the neighbors afterward.
Transient lodging tax also stops applying past a threshold in most states, often around thirty days. Confirm your number, because it favors the long term column.
What You Are Actually Selling
Your peak, if you let it happen by accident.
The site you commit for a season or a year is not available for the Fourth, the rally, or the festival that carries your fall.
Here is the part I want owners to hear, because it is fixable. That is a contract design problem, not an inherent trade. Blackout dates. Seasonal terms that end the week before your biggest event. A peak surcharge. Rolling thirty day agreements instead of annual on your better inventory.
Convert without any of those and you did not sell a site. You sold your twenty best nights at a rate you set in a soft month.
The Ancillary Shift Nobody Models
A transient guest spends on top of the site rate. Firewood, ice, propane, the cart rental, the early check in fee, a t shirt on the way out.
A long term resident spends far less of that, and spends it differently. Which is not the same as spending nothing.
Long term residents drive storage revenue for the boat and the extra vehicle. They rent carts by the season, which is higher margin and less labor than renting by the night. They pay extra vehicle and pet fees every month. Your laundry very likely runs on them, because a guest staying two nights does zero loads. And their families book your cabins at rack rate on holiday weekends.
So the honest version is this. Ancillary per site night falls, and the mix moves from impulse retail to recurring services. Most parks built a store for transient traffic and never built the long term menu, so the revenue drops by default rather than by necessity.
Build the menu before you convert. Storage, seasonal rentals, recurring fees, package handling, lot care.
Electric, and the Wire Behind It
Meter it and bill it separately. If your rate includes electric, you have written a blank check and handed it to somebody with time on their hands. Most operators know this part.
What most operators have not checked is whether the wire can take it.
Park electrical distribution assumes that not every fifty amp site pulls near maximum at the same time. A row converted to year round long term breaks that assumption. Air conditioning in August, resistance heat in January, every day, on the same pedestals. What shows up is nuisance breaker trips, voltage complaints, transformers running hot, and a service upgrade nobody budgeted.
Have an electrician look at the loop before you sign anybody. Same thinking on internet, because a backhaul sized for transient burst use fails with forty residents streaming on it all day.
Trash is the most underbudgeted line in a conversion, and if you are on a permitted septic system, remember it was sized to a transient design flow. That is a compliance question, not a drift.
Rate Flexibility Is the Quiet One
Raising a rate on someone who has been in row B for two years and helped chase down a water leak last spring is one of the hardest conversations in this business. Most owners flinch, and I have watched long term rates sit still for years while insurance, payroll and utilities did not.
Put the annual increase in writing before anyone moves in. It is a policy when it is written in advance. It is a betrayal when it shows up in year three.
Do You Need to Run Background Checks
Nothing requires you to. No federal or state law makes an RV park screen a long term resident, and plenty of good parks never have.
I still tell owners to screen, and not for the reason most people expect. It is not about criminal history. It is about money.
Once a resident crosses your state's day threshold they are a tenant, and removing a tenant takes a court, not a conversation. Income, credit and prior park references keep you out of that, and the financial screen is the least regulated part of this in every state.
Two rules if you do it. Apply the same standard to every applicant, every time, because selective screening is how discrimination claims start. And if you use a screening company, you owe the applicant written notice any time that report affects your decision, including when you approve at a higher deposit. That second one catches people.
OHI publishes member guidance on this. Start there, then ask your attorney about your state.
Run These Numbers, Not the Rate Comparison
Do not compare monthly rate to nightly rate. Compare total revenue per available site. What does that site produce today across a full twelve months, not on a good Saturday. What does it produce beyond the rate. What does the long term rate produce net of metered electric, plus the ancillary you are going to build. What expenses does it add, and what does it drop.
Then look at concentration. If that site earns nine thousand dollars a year and six thousand of it lands in sixty nights, you are not trading a rate. You are trading the sixty nights.
If you cannot answer the first two, you do not have a conversion problem. You have a reporting problem.
Pick the Sites Deliberately
Not the premium pull throughs with the view. Those are paying for your year.
Back row. Longer walk to the bathhouse. The corner sites that sit empty in October anyway. Clustered, so the long term community is a neighborhood instead of a scatter of permanent rigs through your transient rows.
Decide Your Cap Before You Sell the First One
Long term conversion is close to a one way door. Unwinding it is far harder than starting it.
So decide today what percentage of your sites will ever be long term, write that number into your operating plan, and convert against the cap instead of against this month's occupancy report. Parks do not choose a long term identity. They drift into one, a soft season at a time.
The properties that do this well are not the ones that converted fastest when transient got soft. They are the ones that knew exactly what each site was worth, all in, before they gave it away.
Next time I will cover the other half. Insurance classification, fair housing, occupancy limits in your permit, and what happens when a resident stops paying and the rig will not start.
Before You Convert a Single Site
We help owners run the real numbers site by site, structure the rate and the utility billing, and build the long term revenue menu so the floor you gain does not quietly cost you your peak. Reach out at www.hospitalityacrossamerica.com.