Buying an RV park or campground

General information, not tax or legal advice. Rules and rates change, and every situation is different. Talk to your lawyer and accountant before you act on anything here.

How these are valued

Buyers look at income after paying someone to run the place, the number of sites, the land and zoning, and the water, septic and power capacity. Seasonality and room to expand matter a lot. An owner who works every day for free makes the numbers look better than they will for you.

What to check

• Water and septic. Permits, capacity, testing records and any orders from the health authority.
• Power. Service size and whether it supports more or bigger sites.
• Zoning and permits for the number of sites and any long-term stays.
• Bookings for at least three seasons, and how many are repeat guests.
• Long-term guests, and whether tenancy rules could apply to them.
• Equipment, buildings and roads, and what needs replacing.

Financing

Banks and credit unions look at both the land and the business. Some buyers use a vendor take-back from the seller. Line up a lender who knows the sector early.

How I help

I also work with park owners who are selling (see selling an RV park or campground), so I know what sellers worry about and what buyers ask. I can help you check the business and the land together.

RV parks and campgrounds in detail

What drives value

• Occupancy and booking history by season, and the mix of nightly, seasonal and long-stay sites.
• Site count and size, hookups (power, water, sewer) and the condition of roads and buildings.
• Location, access, and what the zoning allows for expansion.

Due diligence

• Booking records, financial statements and tax returns, and the reservation system.
• Water and septic systems: permits, testing records and capacity. Small water systems are regulated by the regional health authority.
• Zoning and any limits on length of stay. Some parcels are in the Agricultural Land Reserve, where campground use needs Agricultural Land Commission approval.
• Long-stay sites may fall under BC tenancy law. Get legal advice before you count on raising those rents or ending those stays.
• Environmental history, fuel tanks and any riverbank or flood issues.

BC specifics

• Campgrounds are typically assessed as Class 6, business and other. See BC Assessment property classes.
• Buying the business and the land together, or the shares of the company, changes the tax for both sides.

Questions to ask

• How much revenue comes from long-stay guests, and on what terms?
• When were the water and septic systems last inspected and upgraded?
• What permits does the park hold, and are they current?

GST. The sale of commercial property is generally subject to GST. If the buyer is registered for GST, the buyer usually self-assesses instead of paying it to the seller. See the CRA guidance on real property and GST/HST and talk to your accountant.

Water licences

Since 2016, BC’s Water Sustainability Act has required authorization to use groundwater for anything other than domestic use. A park that serves campers from a well should hold a water licence. Ask to see it, and make it a condition of your offer.

Questions people ask

How are campgrounds valued?

Mostly on income after a fair wage for management, plus price per site, the land, zoning and the capacity of water, septic and power.

Can long-term RV guests be tenants?

Sometimes. Depending on the facts, BC tenancy rules can apply to people who live on a site. Ask a lawyer before you buy a park with long-term guests.

Can I get a vendor take-back on a campground?

Often it’s possible. It depends on the seller. See the VTB guide for how they work.