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Due Diligence Before Buying an RV Park: Why Electrical Systems Matter More Than Ever

Electrical Works: Protecting Your Investment, Protecting Your Guests

Purchasing an RV park or campground has always required careful due diligence, but as Grounding Monitor Interrupter (GMI) technology becomes standard on newly manufactured RVs in the near future, electrical infrastructure has moved to the top of the risk profile.

What may have once been considered a manageable electrical issue can now become a material operational, financial, and compliance concern. Parks that are not properly grounded or suffer from voltage drop, outdated wiring, or inconsistent power delivery may face immediate guest disruptions once GMI-equipped RVs begin arriving.

Understanding the true condition of a property’s electrical system before closing is no longer optional. It is a critical part of protecting your investment.

Why Electrical Due Diligence Is Often Overlooked

In many transactions, electrical systems receive only a surface-level review. Buyers may confirm service size, glance at pedestals, or rely on current on-site management without a deeper evaluation of how the system actually performs under load.

This approach never worked well in the past, and now with GMIs in play, those same shortcomings will trigger power shutoffs, guest complaints, and immediate pressure to make repairs.

Commonly overlooked issues include:

  • Insufficiently sized distribution equipment and wiring systems
  • Non-code compliant 30A to 50A upgrades
  • Years, if not decades, of band-aids from unqualified maintenance personnel
  • Improper or missing equipment grounding conductors
  • Voltage drop caused by long runs or undersized wiring
  • Aging or deteriorated distribution equipment
  • Infrastructure that technically functions but fails under peak demand

Without proper testing, many of these issues stay hidden.

How GMIs Change the Risk Profile of a Property

GMIs continuously monitor power quality, grounding integrity, and voltage levels. They do not just check conditions at the plug-in. They continue testing throughout a stay.

If the voltage falls outside acceptable ranges or grounding is incorrect, the RV will disconnect from power. From a buyer’s perspective, that means:

  • Electrical issues become guest-facing immediately
  • Operational problems surface during peak revenue periods
  • Deferred maintenance turns into urgent capital expenditures
  • Electrical deficiencies affect occupancy, reviews, and reputation

A property that appears profitable on paper can quickly require significant unplanned investment once GMIs expose system weaknesses.

What Proper Electrical Due Diligence Should Include

True electrical due diligence goes far beyond visual inspection. It requires evaluating how the system performs in real-world conditions.

A thorough assessment should include:

  • Verification of proper ground systems
  • A thorough check for electrical liability concerns
  • Review of wire sizing and run lengths
  • Identification of voltage drop risk points
  • Pedestal condition and configuration review
  • Distribution and transformer capacity evaluation
  • Identification of code compliance gaps related to NEC standards
  • A map of the electrical infrastructure
  • An estimate to make any necessary repairs
  • A general budget for electrical repairs over the hold period

One thing many people don’t include in their due diligence evaluation reports is a map of the key electrical infrastructure on-site. We always create a simple map showing the locations of transformers, power poles, distribution equipment, etc., on the property. This is a great tool for the project’s maintenance staff. Also, it allows us, as contractors, to easily prepare future estimates for unforeseen scopes of work and to help diagnose problems remotely.

This level of analysis allows buyers to understand not just what exists, but what will be required to operate reliably in a GMI environment.

Financial Implications Buyers Need to Understand

Electrical issues uncovered after closing are rarely minor. Once a park is operational, repairs often happen:

  • During peak season
  • On nights or weekends
  • Under guest pressure
  • At emergency rates

These conditions drive costs significantly higher and disrupt revenue at the worst possible time.

Identifying electrical deficiencies during due diligence allows buyers to:

  • Negotiate purchase price adjustments
  • Plan capital improvements accurately
  • Schedule upgrades during off-season windows
  • Avoid emergency repairs and guest displacement
  • Protect projected returns and long-term asset value

One critical aspect we regularly find that isn’t considered is value-added purchases. The vast majority of transactions in the RV and MH industry have a value-add component. Most of the time, these value-added components include some sort of electrical scope, like the following:

  • Add new amenities, such as sports courts, clubhouses, etc.
  • Upgrade sites from 30-50A to accommodate 50A RVs
  • Upgrade sites from 50A to 100-200A to accommodate park models, cabins, MH units
  • Adjust site layout – move site utilities
  • Add new sites, or add utilities to existing sites
  • Install a new street lighting system

These projects are all significantly affected by the condition of the existing on-site infrastructure. What happens if you upgrade a couple of dozen of your sites only to find out that the distribution equipment onsite that is running 20 sites isn’t even rated to feed 12 of them? You’re likely looking at having to get with the utility company, get a permit, order and install thousands of dollars’ worth of panels, and trench new wiring to the new panel, etc. A project like this could easily reach six figures, and for many buyers, if they knew that on the front end they would at minimum negotiate it up front, they might not have walked away from the deal.

Engaging in a conversation about the potential plans for the property prior to scheduling an on-site evaluation is an absolute must! We’ve worked on several properties where the buyer either failed to have those conversations upfront, or the electrician they engaged to review the site wasn’t capable of having those discussions, and it can be devastating.

This exact same thing happened at a property we worked on in Florida. The buyer has actually used our services for years, but hadn’t even considered the need for electrical due diligence on the property in question. After they closed, they brought us in to provide a quote to upgrade all the sites at the property to 200A to accommodate new mobile homes. When we approached the utility company, they let us know that they would not allow ANYTHING to be changed to the electrical system on-site without it being 100% replaced.

Our customer had already removed many of the old homes on-site, and there were only a handful of sites that were occupied and generating revenue. This led to tens of thousands of dollars in legal expenses, easements, surveying, CAD drawings, and over 12 months before we were able to start our $200,000+ electrical project.

Electrical due diligence on that particular project would have been under $5,000, and had the buyer known how important it would be, I’m sure they would have read our report and walked away from the deal.

How Electrical Works Supports Buyers During Due Diligence

Electrical Works has supported thousands of RV and MH sites across the country and understands how electrical systems directly impact both operations and property valuation.

Our team provides buyers with:

  • Comprehensive electrical due diligence evaluations
  • Voltage drop testing with peak load considerations
  • Grounding and NEC compliance assessments
  • Clear documentation of current conditions and risks
  • Upgrade recommendations aligned with GMI readiness
  • Budgetary guidance for future electrical improvements

With more than 25 years of experience, over 20,000 RV and MH sites completed, and licensing in over 20 states, Electrical Works brings unmatched insight into what buyers should expect from an electrical system before taking ownership.

Our Vice President and Master Electrician, Tristan Ciceri, serves on the National Electrical Code Code-Making Panel 7, representing the Outdoor Hospitality Industry. This involvement ensures our guidance reflects both real-world park operations and the direction of future electrical standards.

Buying With Confidence in a GMI Future

GMIs will not create new electrical problems, but they will expose existing ones faster and more visibly than ever before.

Buyers who perform proper electrical due diligence will:

  • Avoid unexpected capital expenses
  • Reduce post-acquisition operational disruptions
  • Protect guest experience and revenue
  • Enter ownership with clear expectations
  • Position their properties for long-term compliance and reliability

Electrical Works remains committed to helping buyers, owners, and operators make informed decisions that protect their investments, their operations, and the communities they serve.

Speak with a Electrical Due Diligence and GMI Expert today.