Campgrounds

A campground is an area of land where people can camp overnight, either in a tent or in their car or recreational vehicle. The largest campgrounds consist of a number of back-to-back sites where one can park their recreational vehicle or pitch their tent. Privately run campgrounds as commercial ventures with improved or unimproved sites have been around for decades and have been gaining in popularity.

Are campgrounds or RV parks profitable investments?

Investing in a campground can be profitable, especially if the property is large enough for back-to-back sites. One must consider that a campground's value is directly related to an area's demand for such property. In addition, the cost of running a campground is much less than more traditional forms of lodging. As long as property does not have restrictions on its use, it can be bought at a relatively inexpensive price. However, any changes to zoning or building codes must be followed to ensure safety for guests and protection from liability suits.

Campgrounds are popular with extended stay guests. These are people who will rent a site for consecutive months. The advantage for the owner is that the longer they stay, the more money they spend on amenities such as groceries, electrical hook-ups and in some cases propane tanks which can be refilled at a profit.

Campgrounds can be run by both individuals and corporations. A smaller campground can be managed by a single individual with an on-site residence, which the owner rents out for additional income. In this case, the property owner is responsible for maintenance, reservation records and overall management of the area. A larger campground may include on staff groundskeepers, sewer dump stations, laundry facilities and even entertainment for children. A more complex organization requires the hiring of staff to fill these roles.

Should I purchase a campground?

There are many challenges that campgrounds face in becoming profitable investments. The most notable is increased competition. With the upswing in camping and outdoor activities, such as fishing and hiking, demand for campgrounds has risen. In addition, many state run sites are underfunded causing them to close temporarily or limit use by recreational vehicles. If a corporation buys property near such an area they may be forced to lower prices to compete.

What should I look for in a campground for sale?

When looking at a campground for sale, an investor needs to consider what makes the property unique and how it differentiates itself from other sites. These factors include:

• - Size and location of site (i.e. availability of sewer dump stations, proximity to highways)
• - Number of back-to-back sites available
• - Amenities on site (i.e. tenting areas, playground, laundry area)
• - Whether the property is shaded or provides some level of privacy for guests
• - Accessibility to other recreational activities (i.e. hiking trails, beaches)
• - Whether the property is located within an established campground community with other amenities such as specialty shops, restaurants and clubs for guests
• - How far the property is from other amenities (i.e. grocery stores, restaurants)

Buying a campground can be a smart investment:

Campgrounds can be bought for a relatively low cost. They are a simple business which require little staff to manage and operate, although it will require some initial investment for cleaning or renovating facilities. They are appealing to people who want a simpler lifestyle that is not dependent on the office for employment.

Campgrounds can be found in rural, suburban and urban areas throughout North America. The appeal of these camping properties is equal across all demographics due to their accessibility and affordability compared with traditional hotels or resorts. Investing in property used by campers is a great form of investing in real estate. Guests are always looking for places to stay and businesses that provide these accommodations may be less at risk than other areas when it comes to economic downturns, since many campers will continue to use the property even if they cannot afford other vacations.

Looking to lease a Campground? View Campgrounds for lease