Am I buying a cottage rental business or just the cottages?

Two listings can look identical, with the same lake, the same cabins and the same photographs. One is a going concern with guests booked into next summer. The other is a group of buildings whose seller has been renting them informally. The checks you make differ, and so do the people you ask for advice.

What makes it a business

A business has things you can name and hand over. Look for a guest list, a booking calendar with history, a website and a name guests recognise, and records showing how the cottages were run. If the seller cannot show these, ask why. A business with nothing written down is hard to hand over, even if guests love it.

Future reservations and deposits

Guests who have booked next season have often paid a deposit. Ask who holds that money today, how it will be treated at closing and who looks after those guests afterwards. Your lawyer and accountant can set this out in the agreement. Leaving it vague is a common source of disputes after closing.

People and know-how

Ask who cleans, repairs, greets guests and answers the phone. If the owner does most of it, the business may not run without that person. Ask whether the seller will stay on for a handover, and whether staff are likely to remain. See what to check before buying a cottage resort for a wider checklist.

When it is mostly property

If the sale is really buildings and land, treat it as a property purchase and get property advice. You can still build a rental business there, but you start without a guest list or history. Our page on whether to keep the real estate when selling shows how the two are separated.