Buy a Campsite or Campground Business

This article concerns itself with buying a small campsite or campground business, by small This means business that can sustain a living for a family. The initial author has previously run a hotel and a campsite and runs a website that specialises in the sale of small tourist businesses, so much of the information here expertly derived and the information presented in this article is not conjecture or just another article written to promote a website; it is real information gained first and second hand. The perspective is international – different regulations apply to campsites in different countries. The object of this article is not to specify all regional variations but rather to highlight crucial issues that should be looked into.

There are real gems of advice here and anyone who is currently visiting campsites or campgrounds for sale who reads this will start asking the right questions and will hopefully go on to make a good balanced decision. Good luck!

Steps

Long term tenants

  1. Consider whether there are there any semi-permanent lodgings on the grounds not owned by the campsite. This will vary from country to country but many campsites do rent plots to owners of chalets or log cabins. This is very important as the following points indicate.
  2. Don't make the assumption that if you buy a campsite you will own everything you see.
  3. Find out what the terms and conditions are for the owners of those chalets; in short how long are you legally obliged to continue to rent out the space to that particular owner? Do you have the right to change the rental rate? Under what terms could you evict a problematic client.
  4. Be open to having such tenants. Clients of this nature often represent a desirable and steady income – the benefit in terms of peace of mind of a reasonable guaranteed income, rain or shine, cannot be underestimated when you are making monthly repayments on your business loan.
  5. Find out whether such chalets have their own toilets and showers, otherwise they may be counted as users of your toilet facilities and therefore limit the number of visitors you can accept for a given star rating. This is a very important issue that is the subject of the next section.

Star ratings

  1. Be conscious that star ratings vary from country to country, region to region and indeed from camping organisation to organisation. For instance, you may have a two star with the local authorities and have a three star in a particular camping guide. Star ratings usually take into account the number of toilets and showers available to a given number of guests; for instance, one toilet to twenty people might deliver a two star and one toilet to forty people might deliver a one star. Be aware then that expansion of the campsite without similar expansion of facilities may lower your star rating.
  2. Be realistic. Unfortunately many camping authorities give star ratings for facilities that campers are not interested in, so don't be surprised to find a campsite littered with table tennis tables that no-one is using - the owner is probably just "chasing stars".

Swimming Pools

  1. Note whether there a swimming pool on the campsite. If so, then does it conform to local regulations? Is the equipment in good order with evidence of maintenance? Local regulations may stipulate that the pool is surrounded by a childproof fence and also that a qualified lifeguard is on duty when the pool is open. Fully researching this issue properly is an absolute must. For instance, in Italy a full time "pool boy" or bagnini is required for any campsite pool. This raises issues of needing to employ an additional employee with the associated running costs. However, in Denmark no such provision is required. Prospective buyers in the US are advised to consult state authorities.
  2. Understand what pool ownership involves. A pool may be a must in hot locations but do not underestimate the work or commitment involved in running a clean, legal and safe pool for your clients. What is the peak season temperature of the water without any additional heating? Will you need heating and if so is solar an option?
  3. Be pragmatic. Not all campers consider a pool a bonus, those seeking a quiet retreat often view pools as a bonus in terms of an additional facility but as a negative in terms of attracting other campers of a noisier disposition. Some campers on balance actually seek out campsites that lack certain amenities that are judged to be attractions for a different sector of the market.

Emergency access

  1. Learn what the local rules or regulations demand. Once again this will vary from country to country but the types of things you need to think about include the width of roads and the passable width of any gates. Emergency vehicles will need to turn around when they exit the campsite; the 'turning circle' of a fire fighting vehicle is not small. It is worth talking to the local fire-fighting agency to find out what is required for the larger fire-fighting emergency vehicles. At the same time, get any oil or gas fuel tanks checked over and ensure any required permits are in place.
  2. Find out what your obligations are in terms of simple First Aid and public fire-fighting equipment and training. Don't assume that the existing owner has ticked all the boxes - the authorities will not excuse any serious omission on your part, on account of the conduct of the previous owner.
  3. Check out what local taxes or fees you may be eligible for. In many countries, businesses pay higher rates for services than private homes.

Permits, Inspections and Infrastructure

  1. Consider whether permits have been obtained for the number of spaces or pitches already operated. Similar with any semi-permanent buildings.
  2. If you plan to expand the campsite, talk to the relevant authorities before purchase. It is not just a matter of permission for more pitches – it is also a matter of what obligations you may have in terms of upgrading existing infrastructure, electricity supply, water supply, sewerage, access, security, health and safety. For instance, the electrical supply may only be sufficient for the electric current demand of the existing number of pitches so existing cable work may need replacing.
  3. Remember that sewerage does not travel uphill, at least not without specialist sewerage pumps, so you need to consider the existing layout when considering expanding into areas of differing elevations. Is the capacity sufficient for current use and any expansion plans? Has the system been inspected by the relevant state or local authorities - have they issued any demands for improvements and, if so, how long would you have to comply and how much would it cost?
  4. Find out who the most important camping bodies and organisations are for the relevant country. Most will have a website or year book; check if to see if the campsite is listed and if so, what comments and ratings are given. Most large camping organisations also have inspectors who visit sites – find out what they are looking for when they rate a campsite. For instance, a certain governing body in Europe stipulates a minimum shower cubicle width as a condition for a certain star rating - if cubicles have already been built but are too small, then obtaining higher star ratings may prove expensive. You could choose to view the inspector's demands as a hurdle to jump but actually he only represents the wishes of the majority of campers in the organisation he represents, so really his comments should be seen as valuable commercial advice - ignore the wishes of your campers at your peril!

Try before you buy

  1. Don't buy a campsite until you have slept in it a few nights - seriously! Take your tent or your camper van (or RV in America) and stay for a few nights. Use the toilets, showers, and the facilities and ask yourself if you would stay there yourself? Try to time your morning visit to the washrooms and toilets to be right in the middle of peak demand - this when you will get to see if the existing infrastructure can handle demand and whether the mood in the air is satisfaction or impatience and frustration. Remember that these people are potentially your future clients, so you need to get inside their heads and understand exactly how they feel about this campground.
  2. Get chatting to other users of the site. Some may be regular clients who can tell you a lot of useful information about the campsite and also the surrounding attractions - how many times have they returned and what keeps them coming back? Regulars will be able to tell you whether there are any noise issues or similar disturbance problems associated with the immediate area that might be a problem. Do not base your decision to buy a campsite on one overnight stay; spend a week or longer if you can.
  3. Be aware of any seasonal issues. Floods, storms, nuisance insects such as army ants or mosquitoes, etc. can be an issue. Familiarise yourself with regional climate and animal or insect life that may affect your clients.

Know your market

  1. Be aware that one of the primary considerations for anyone thinking of buying a campsite, hotel or other small tourist business is that you must know your market. This includes knowing your clients' age ranges, whether they are families or retired couples, and understanding their idea of a perfect vacation. If this aspect of research does not interest you, it is recommended that you re-consider whether a small tourist business is really a good choice for you.
  2. Know your target market and what their standards are. For instance, in continental Europe the Dutch are very keen campers but they are also known for their expectation of high standards of cleanliness. As such, you will not penetrate this lucrative sector of the market without spotless toilets and very regular cleaning schedules.
  3. Look around to find out what the main attractions are in the area. Beach, sea, mountains or cultural cities? How does this affect the type of client and their duration of stay? Do most people stay a week or are they passing through. Neither is necessarily best; a steady stream of people staying only two nights on their way to some other destination might be a very good line of business but it will mean you spend more time settling arrivals into their allotted pitches.
  4. In the initial author's experience, some campsite businesses do very well in areas that seem rather unremarkable. This might be because there does seem to be a type of camper who just enjoys being in a field, cooking on a barbecue and enjoying fresh air. However it is considered that such a prospect is at best risky and should only be considered on the evidence of several years worth of financial figures. In general, the first maxim for tourist businesses does apply to campsites equally well and that maxim is: "location location location".

Lifestyle Business?

  1. Never buy a tourist business while only looking at it as a lifestyle business, namely, with a view to your personal lifestyle. Always take the view of your customer - ask yourself the question would you come and stay as a paying customer?
  2. It is usual for small family run campsites to come with a house for the owner to live in. Some naive buyers fall in love with a great deal on the house and forget that the rest of the campsite has no really strong attraction for the camper.
  3. Another way to summarise what is being said here? Think of your customer first and then consider your private living circumstances second; the reverse priority is unlikely to favour your long term financial prospects. Few people get rich running small campgrounds or hotels. Those who do get rich usually do so by massive expansion and end up leaving what may be called the lifestyle end of this business sector. In general if you favour quality of life above financial income you have a more realistic view.

Boundaries and access

  1. Get the relevant professional advice to establish the legal boundaries of the campsite. Don't trust wire fences or wooden fences. Urban houses tend to have very well defined boundaries but visual indications of boundaries on a campsite may be misleading. If the previous owner has constructed anything of a permanent nature, or relies on access that transgresses a boundary, you may be in for complications.
  2. Consider the road or track leading up to your campsite as your lifeline. Make sure you understand who owns the road and what protection you have for the continued access of your clients. Is the road easily passable in all weather conditions that are likely to occur during tourist season? Find also how service pipes exit the campsite, they may well travel alongside or underneath the service road.

Local considerations

  1. Arrange to talk to a local figure of political authority, such as a mayor, councilor or politician. Take the opportunity to find out whether the local authorities are supportive of the business. In many cases, local authorities are keen to encourage tourism and you will find a favourable response. You may find yourself applying for permits from these people, so it's important that they look favourably on you and your business.

Competition

  1. Check out the local competition, in particular any sites run by local government, council or authority, as these may have very competitive rates, superior advertising muscle and high standards.

Food

  1. Provide food options. Food is a big subject but starting out from the customer's point of view, a lot of campers would like the option of restaurant food and also appreciate somewhere that they can cook for themselves. There are advantages and disadvantages to getting into the restaurant side of things; for one thing, you will need to ensure that cooking and eating areas meet local regulations and even if you franchise out the responsibility of cooking, you will still be the person who is responsible overall. There is a twofold advantage to supplying food: firstly, your revenue will increase on account of direct sales but secondly, you will generally attract more campers if you provide food.
  2. If you are not keen on being responsible for a restaurant yourself, then another option is to buy your campsite within easy reach of existing restaurants and then form a co-operative relationship with these businesses. Distance will, of course, be the main factor here – people will tend to want to be able to stroll to a restaurant in the evening, especially if they are drinking alcohol, so the acceptable range may be only one or two miles or kilometres.
  3. Have refrigeration storage options available. Many campers consider some form of refrigeration essential. Camper vans or RVs will have their own fridges but those in tents will appreciate somewhere to keep their milk fresh. A recent online poll conducted by the authors on a European website showed that refrigeration was one of the most important considerations for those staying in tents.

Tents

  1. In most cases the revenue generated from campers in tents is much lower than that collected from RV owners (in Europe these are known as campervans) and caravans. However it's always worth catering for those who favour canvas.
  2. One point to note is that those sleeping in tents often feel very uncomfortable when large vehicles are moving around in their vicinity, especially if they are still asleep in the morning. Consider adding physical barriers to ensure that vehicles and tent occupants remain at a distance from one another - it's much easier to relax inside a tent when you feel that you cannot be accidentally driven over. Incidents are rare but it is a common psychological discomfort if you care to ask tent owners.



Tips

  • There are online sites that can help you to find campground businesses in your area.
  • Glamping is another option for a campground. It involves luxury camping and therefore requires more assets and financing but you can be rewarded with good returns.

Related Articles

Sources and Citations

  • The original article here was based on an article published at http://www.buymydreamhotel.com/buying_a_campsite.htm. The original author has presented some new sections for the freely available wiki article and is the author and copyright owner of the original article on the commercial website.

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