Caravan Park

/ˈkarəvan,karəˈvan/pɑːk/

Noun

an area where caravans may be parked and used for holidays or as permanent homes.

Caravan

These days, Caravan Parks are also referred to as Cabin Parks & Mobile Home Parks. Parks come in many shapes & sizes

Types of caravan parks

Caravan / Cabin Parks come in of all sorts of configurations and can consist of...

Freehold going concerns

Freehold Going Concerns. This describes the situation where one party is both the owner and the operator of a caravan park. They are responsible for all aspects of the caravan park, from bookings to maintaining communal areas. No rent is payable and the owner receives all profit after operating costs.

The Split

Lease. Most new caravan park leases in the industry are 30 years long. This is made up of a fixed term plus options (i.e. 10 years + 4 x 5 year options). The lessee often lives on site and conducts the day to day management of the business.

The lessee is free to run the property as they see fit. Their objective is to grow occupancy and tariffs, increasing the net profit. They are responsible for all operating costs, such as wages, expenses and all outgoings. The lessee pays the landlord an annual rent for usage of the land and buildings. The lease value is made up ‘goodwill’ and chattels of the business and exclusive use of the facilities on site.

Passive Investment. The owner of a passive investment is also known as the ‘landlord’. They own the land, buildings and structural items that make up the caravan park, but they have nothing to do with the operation of the business.

The landlord is responsible for all structural repairs and is expected to maintain the standard of the property for the duration of the lease. The landlord/passive investor receives an annual rent from the lessee. Depending on the lease documents, this rental figure increases yearly by CPI. In some cases a rent review clause is inserted.

Being a good parky

The key to being a good parky is to really enjoy working with people. The objective is to give your guests a great experience and make sure they ‘stop by’ next time they are driving past... and tell their friends about your park!

There is no need to be experienced in accommodation or tourism industries to be a good parky. Some of the best parkys we have seen over the years have come from entirely different backgrounds.

Caravan Parks usually cover a large expanse and are ideal for a person who loves the outdoors or is ‘handy’ at heart. The parks that stand out from the crowd are immaculately presented with mowed lawns, well clipped hedges, tidy roads and attractive landscaped areas.

Being good with figures and accounting will help you keep track of your costs and ensure you have a salable entity when the time comes. Also having an interest in marketing will help keep your caravan park in the limelight.

However, more important than anything else when it comes to running a successful caravan park is having a friendly face behind reception. You must offer a personalised and professional service and be willing to accommodate the requests of the weary traveller.

Did you know
50 per cent

of the 8.5 million domestic caravan and camping visitors were aged between 30-54 years old, while around a quarter were active seniors aged 55-70 years old

In 2011-12 it is estimated that Australia’s caravan and camping grounds industry generated revenue of around

$1.31 billion

Caravan Parks is one of the fastest growing domestic tourism sectors in Australia

Graph

The ‘grey nomad’ is the most rapidly growing sector to visit parks. In 2011 numbers sat at around 12% of the sector equalling over 2.6 mil travellers per annum

Couple

Source: ABS Snapshot & IBIS World

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