How to Buy a Campsite or Campground Business

Step-by-Step Guide

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   Step 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.
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   Step 2: Don't make the assumption that if you buy a campsite you will own everything you see.

   , Do you have the right to change the rental rate? Under what terms could you evict a problematic client. , 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. , This is a very important issue that is the subject of the next section. , 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. , 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". , 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. , 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? , 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. , 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. , 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. , In many countries, businesses pay higher rates for services than private homes. , Similar with any semi-permanent buildings. , 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. , 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? , 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! , 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. , 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. , 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. , 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. , 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. , 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. , 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". , Always take the view of your customer
   - ask yourself the question would you come and stay as a paying customer? , 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. , 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. , 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. , 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. , 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. ,, 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. , 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. , 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. , However it's always worth catering for those who favour canvas. , 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.
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   Step 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?

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   Step 4: Be open to having such tenants.

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   Step 5: Find out whether such chalets have their own toilets and showers

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   Step 6: 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.

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   Step 7: Be conscious that star ratings vary from country to country

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   Step 8: region to region and indeed from camping organisation to organisation.

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   Step 9: Be realistic.

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    Step 10: Note whether there a swimming pool on the campsite.

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    Step 11: Understand what pool ownership involves.

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    Step 12: Be pragmatic.

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    Step 13: Learn what the local rules or regulations demand.

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    Step 14: Find out what your obligations are in terms of simple First Aid and public fire-fighting equipment and training.

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    Step 15: Check out what local taxes or fees you may be eligible for.

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    Step 16: Consider whether permits have been obtained for the number of spaces or pitches already operated.

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    Step 17: If you plan to expand the campsite

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    Step 18: talk to the relevant authorities before purchase.

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    Step 19: Remember that sewerage does not travel uphill

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    Step 20: at least not without specialist sewerage pumps

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    Step 21: so you need to consider the existing layout when considering expanding into areas of differing elevations.

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    Step 22: Find out who the most important camping bodies and organisations are for the relevant country.

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    Step 23: Don't buy a campsite until you have slept in it a few nights - seriously!

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    Step 24: Get chatting to other users of the site.

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    Step 25: Be aware of any seasonal issues.

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    Step 26: Be aware that one of the primary considerations for anyone thinking of buying a campsite

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    Step 27: hotel or other small tourist business is that you must know your market.

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    Step 28: Know your target market and what their standards are.

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    Step 29: Look around to find out what the main attractions are in the area.

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    Step 30: In the initial author's experience

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    Step 31: some campsite businesses do very well in areas that seem rather unremarkable.

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    Step 32: Never buy a tourist business while only looking at it as a lifestyle business

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    Step 33: namely

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    Step 34: with a view to your personal lifestyle.

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    Step 35: It is usual for small family run campsites to come with a house for the owner to live in.

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    Step 36: Another way to summarise what is being said here?

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    Step 37: Get the relevant professional advice to establish the legal boundaries of the campsite.

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    Step 38: Consider the road or track leading up to your campsite as your lifeline.

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    Step 39: Arrange to talk to a local figure of political authority

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    Step 40: such as a mayor

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    Step 41: councilor or politician.

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    Step 42: Check out the local competition

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    Step 43: in particular any sites run by local government

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    Step 44: council or authority

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    Step 45: as these may have very competitive rates

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    Step 46: superior advertising muscle and high standards.

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    Step 47: Provide food options.

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    Step 48: If you are not keen on being responsible for a restaurant yourself

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    Step 49: then another option is to buy your campsite within easy reach of existing restaurants and then form a co-operative relationship with these businesses.

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    Step 50: Have refrigeration storage options available.

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    Step 51: 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.

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    Step 52: One point to note is that those sleeping in tents often feel very uncomfortable when large vehicles are moving around in their vicinity

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    Step 53: especially if they are still asleep in the morning.

Detailed Guide

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