Insider Tips on Becoming a Campground Owner
David Gorin of Gorin + Cohen Consulting & Homer Staves of Staves Consulting Offer Invaluable Assistance For Owing And Managing A Campground or RV Park
Many RVers dream of owning their own campground, perhaps as a place to retire, or to raise a family away from urban distractions. But what are the realities - the possibilities for profit and the pitfalls to be avoided?
Several companies offer consulting services to help people decide if owning a campground would be a sound financial decision. MobileRVing: The Buzz spoke with David Gorin of Gorin + Cohen Consulting and Homer Staves of Staves Consulting. Both have decades of experience in helping campground owners succeed, offering services that include feasibility studies, campground design, management guidelines and marketing strategies.
“We’re very, very busy right now,” says Gorin, who was President & CEO of the National Association of RV Parks & Campgrounds for 14 years. “Business is booming in the RV industry all over the country. We’re getting three or four inquiries a week looking for consulting help.”
Gorin says the inquiries fall into three major categories: 1) Starting from Scratch- Most of our clients own land that they think is in a good location, and want to develop it. 2) Picking Up Where They Left Off- Some are interested in purchasing an existing park and need an unbiased opinion and help with due diligence. 3) In It for the Long Haul- Others are park owners who want to grow their business by expanding and reaching out to new markets.
Those starting from scratch face the most challenges, and the most costs, Gorin explains. “In addition to acquiring the land, you’ve got what we call soft costs: permits, zoning, site plans, environmental studies, traffic studies, wetland studies, making sure you’re complying with all the local, state and national regulations. That’s a lot of money out front, before you even begin to build.”
For those thinking of buying an established campground, Gorin laid out four steps that potential owners should take, before they start to spend money. “First, pick out where you want to live, taking into account factors like weather, community, schools, medical facilities. Second, look for a park within 100 miles of a major population center; you need plenty of potential customers. Third, contact a commercial real estate broker who handles this sort of property. Fourth, take a season and go work in a campground in the area where you are interested in buying. Go to the conventions held by state campground associations. Even for people who have been RVing for years, there’s a lot to learn about running a campground.”
Homer Staves agrees on the importance of doing research beforehand to find out if the campground business is what the client wants to be in. One of the first employees at the fledgling Kampgrounds of America company back in the 1960s, Staves stayed with KOA for decades, developing campgrounds around the world, before retiring to run his consulting firm. He and his sons also own and operate the Whitefish MT KOA on the edge of Glacier National Park.
“One of the mistakes people make is thinking, well I’ve been camping all my life, I think I’ll run a campground when I retire,” he says. “It’s still a business and it requires a lot of work. That’s where a lot of the turnover in campgrounds comes from. Older couples buy a campground, and then four or five years later they want to sell.” These are often a good opportunity for people to buy a campground, Staves says, since seller financing may be available.
Location is key in having a successful campground business, Staves says. “Look for a customer base that isn’t being served. We’re developing a campground for clients in central Montana, where there were no campgrounds but a big, popular Bureau of Land Management (BLM) off-road area. All the BLM offered campers were pit toilets and an open field. There was a market looking for better sites.”
According to Staves, the design of a park depends on your own lifestyle as well as on your target market. “Do you want to have a lot of activities, or do you just want to check people in and tell them to go park? If you are aiming for people just passing through, you don’t need a lot of amenities,” he explains. “If you want to attract campers from a nearby metro area to come spend a week or two, you have to go more upscale.”
Staves has seen the typical park owner change over the years. “In the ‘60s and ‘70s, most people were building their own parks. These were do-it-yourselfers, mostly people from the construction industry. Today, the market has changed and campgrounds have become more sophisticated. A lot of the new campground resorts are being built by corporations.”
To be financially viable today, a campground needs at least 100 sites, Staves says. And these can cost. "It takes $20,000 minimum to put in a full hookup site, and that can go up to over $35K."
David Gorin agrees that prices are going up and the typical campground owner is changing. “A couple of years ago some parks could be purchased by a couple who retired, sold their house and used their equity for a downpayment,” he says. “Today, it’s harder for individuals to buy a park. The value and price of most parks has doubled. We’re seeing more small investment groups, people combining their capital to come up with the $3 to $5 million it’s going to take.”
Gorin identifies several features that every park needs to be successful in today’s RV market. “First, you need excellent utilities that work perfectly every time. You need large, level sites. You need good interior roads, preferably paved. And you need modern bathhouses, spotlessly clean. It’s a big mistake to skimp on bathrooms.”
Staves identifies another must for today’s parks - WiFi. “Even retirees have quickly adopted the internet,” he says. “We have to keep upgrading.”
Despite the challenges, David Gorin and Homer Staves agree that owning a campground can be a great experience. “It’s a fun business,” Staves says. “People are in a good mood 99% of the time.”
“It can be very fulfilling,” Gorin adds. “Nothing is more rewarding than a successful small business. Nobody fires you except your customers.”
Consulting firms, including Gorin + Cohen Consulting and Staves Consulting, are ready to help potential campground owners build a successful business, offering considerable free advice and initial consulting on their websites. The all-important part: know what you’re getting into and what to expect.
Renee Wright
A graduate of Franconia College in Social Psychology, Renee has worked as Travel Editor for Charlotte Magazine and has written three travel guidebooks for Countryman Press among other writing assignments. She enjoys food and camping.
Make Sure To Stay At:
Whitefish / Kalispell North KOA, and you'll feel like you're staying in your own private little hideaway. Sprawling across 33 acres of a secluded, forested valley, it's a mere 24 miles from Glacier National Park and a short drive from Whitefish and Kalispell.