Yogi Bear's Jellystone Park Franchise

Everything You Need to Know Before Investing in a Campsite Business

Real Estate Franchise

Buy a campground

If you are looking to invest in the leisure industry, buying a campsite business for sale is something to consider. While often overlooked by many investors and entrepreneurs, six out of 10 households report going camping at RV parks and campgrounds. This steady base of reliable clientele helps to keep your investment safe while garnering you a greater ROI. When compared to other types of real estate investing, buying a campground is often safer overall.

Why Should You Invest in a Campground?

Investing in a campsite business for sale can garner you many long-term benefits. As the primary owner, you can set rules, regulations, hours, charges, and fees. As opposed to owning a commercial or residential property, you can also evict tenants with days’ notice if you find they are breaking the regulations you have put in place. Overall, this type of property gives you a higher level of control than other types and can enable you to create the type of business model that you think is best.

Types of Tenants

Campground and RV park tenants are different than those renting apartments. Because campgrounds are recreational, the tenants there are usually not long-term. Since these tenants are using the property temporarily, you’re less likely to have issues with late rent payments or difficult renters who try and undermine your set rules. For this reason, investing in a campsite business for sale is easier for those who don’t wish to deal with any of the problems that can come with managing an apartment building.

Boost of Seasonal Income

Depending on where your campsite is located, you will see a variation during the winter months. Typically, most campsite owners see an increase of visitors between late spring and early autumn, allowing them to collect the most revenue during this time. This isn’t to say that you won’t have winter tenants, especially if you set up your campground to accommodate visitors during these months. For instance, activities can be set up to make it worthwhile for visitors to stop by for a weekend. Depending on the location of your site, there are a lot of winter activities that have the potential to draw in guests.

Other Considerations

When looking for a campsite business for sale, there are specific points you should consider before investing. Check the current and past income rates for the property, as well as the estimated annual turnout. This data can help give you an idea of what you can expect if you invest. If the previous year’s income is lower than what you’re looking to invest, it’s probably best to look somewhere else — unless you specifically want a site you can completely overhaul. The general rule of thumb is to look at sites with the steadiest income to ensure you’ll be making back your initial investment and more.

How Much are You Willing to Invest?

Consider how much you’d be willing to pay for a down payment and be certain of any additional costs that can be associated, such as property taxes or insurance premiums. All of this should be included when calculating how much you’re willing to invest.

When considering real estate and leisure industry investments, campgrounds are something many people overlook (often to their detriment). When handled correctly, campsites can be a stable and profitable business venture for entrepreneurs looking to expand their portfolios and increase capital. If this sounds like something you would be interested in, consider looking into campsite properties in your area and give us a call to get you started.

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