After classification of the course, the first step in the Income Approach is to establish the gross income by determining golf course’s revenue sources.  The challenging part of the Income Approach is to properly identify the net income attributable to the real estate by taking into account the income attributable to factors such as personal property, management, and other intangible factors.

Golf course revenue is typically generated from two sources; the golf course and clubhouse/pro shop operations.  Determining golf course related income is generally more straightforward than determining clubhouse/pro shop related income.

Profit-orientated golf course operations income sources include the following:

• daily green fees,
• membership dues,
• driving range, and
• tournament fees.

Clubhouse/pro shop related revenue is typically generated from:

• cart rental,
• restaurant including food, beverage, and concessions,
• pro shop sales, and
• other non-golf club operations.

For assessment purposes, the objective is to determine the typical market value of the assessable real estate.  For profit orientated golf courses, the actual income generated will likely be relied upon to establish the market value for assessment purposes.  Most golf courses are uniquely different; therefore reliance on actual performance, as long it falls between an established acceptable range, is likely to produce the most accurate result.