Selling 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.

What buyers pay for

A buyer is paying for three things at once: the income the park earns, the land it sits on, and the approvals that let it keep operating. A new campground is hard to permit in most of BC, so an operating park with its zoning, water and septic in place is worth more than the land alone.

The clearer you can show all three, the fewer reasons a buyer has to discount the price.

Zoning and licensing

Start with what the zoning allows. Campgrounds usually sit in a tourist commercial, recreation or campground zone set by the municipality or regional district. Check:

• Permitted uses. RV sites, tent sites, cabins, a store, and whether year-round occupancy is allowed.
• Site count. The number of sites the zoning or permits allow, compared with how many you actually run.
• Campground bylaws and business licence. Many local governments have a campground bylaw or require a business licence, with rules on site size, spacing and season length.
• Anything non-conforming. Sites, buildings or uses added without permits. Buyers and lenders will find them, so it’s better to know first.

ALR land

If any of the property is in the Agricultural Land Reserve, the Agricultural Land Commission rules apply on top of local zoning. A campground is generally a non-farm use. Some campgrounds have an ALC approval or were operating before the rules applied; others don’t. Find the approval or decision letter for your park, and check what it allows. Applications and past decisions are explained on the ALC applications page.

Water, septic and power

These systems often decide whether a sale goes through.

• Water. A park that supplies drinking water to the public usually runs a water system that needs a permit from the regional health authority, with testing records. See BC’s drinking water rules.
• Septic and sewage. Smaller onsite systems are registered with the health authority; larger ones fall under provincial environmental rules. Have the registration, design capacity and maintenance records ready. See BC’s sewage rules.
• Power. The service size, how many sites have 30 or 50 amp hookups, and the age of the pedestals and wiring.

If the systems are at capacity, buyers will price that in, because adding sites may mean a new system.

Seasonal and full-time sites

Most campgrounds rent sites nightly or for a season. Those guests are usually travellers, not tenants. Long-term pads are different. People living full-time on manufactured home sites are generally covered by the Manufactured Home Park Tenancy Act, and in some cases people living year-round in an RV can be too. See BC’s tenancy rules.

Those residents stay after a sale, their rent increases are limited, and ending a tenancy follows strict rules. Buyers will want a list of every long-term resident, their agreement and their rent. Get legal advice before listing if you have full-time residents.

How parks are valued

Most buyers start with net operating income: revenue minus operating costs, including a fair wage for whoever runs the park, even if that’s you. They divide it by a cap rate to get a value, then check it against:

• Price per site, compared with recent park sales.
• The land, including waterfront, highway access and room to add sites.
• Season length and occupancy, by month, over several years.
• The systems, and what they would cost to replace or expand.

Owner-run parks often show low profit because the owner’s labour isn’t on the books. Buyers will add a manager’s wage back in, so it’s better to show the real numbers yourself.

What buyers check

Expect a buyer to ask for:

• Three to five years of financial statements and booking records
• Zoning confirmation, permits, any ALC approval and the business licence
• Water system permit and testing records
• Septic registration, capacity and maintenance records
• Electrical service details and recent work
• A site map showing every site, building and system
• Long-term resident agreements and rents
• Equipment list, staff and the season’s bookings

Selling confidentially

Staff, regular guests and full-time residents can get unsettled if word gets out early. Many park sales start privately: I prepare a short summary without the park’s name, qualified buyers sign a confidentiality agreement, and detailed financials and a site visit come later for the serious ones. You can decide at any point whether to go further.

GST and tax

A campground is usually commercial property, so GST can apply to the sale. Sites rented to full-time residents can be treated differently. See CRA guidance on real property and GST/HST. A long-held park may also have a large capital gain and recaptured depreciation. Talk to your accountant before you list, and ask whether a vendor take-back or a share sale makes sense.

Timelines

Getting the records and permits together can take one to three months. Marketing and negotiation often take a few months more. Buyers usually want 45 to 90 days of conditions for financing and checks on water, septic and permits, and many prefer to complete outside the busy season.

Questions people ask

How are RV parks and campgrounds valued?

Mostly on net operating income after a fair wage for whoever runs the park, divided by a cap rate. Buyers also look at price per site, the land, and the capacity of the water, septic and power systems.

Do full-time residents change the sale?

They can. Long-term pads for manufactured homes, and sometimes RVs people live in year-round, can fall under BC tenancy law. Those residents stay after a sale and their rents follow the rules. Get legal advice before listing.

Can I sell without a public listing?

Yes. Many park sales start with a confidential approach to a short list of qualified buyers, who sign a confidentiality agreement before they see the financials.

Does GST apply when I sell a campground?

Often, because a campground is usually commercial property. Sites rented to full-time residents can be treated differently. Have your accountant confirm before you sign.