Should I buy an existing cabin rental business or start one?
Buying gives you a booking history, a guest list and buildings already in use, which saves the slow work of filling a new season. Building gives you control over location, design and condition but starts with no guests. Which suits you depends on your time, your capital and how much you want to inherit.
Both routes can work, and neither is automatically safer. An existing cabin business hands you something running, along with its problems. A new one lets you choose everything and asks you to wait for guests. The honest comparison is between what you inherit and what you must build, measured against how much time and money you can commit.
What buying gives you
An established operation comes with a name, a website, past guests and, often, bookings for the coming season. You can read its records and see how a full season went. That does not make it a good business, so check the records carefully. See how to judge a rental business for the kind of questions to ask.
What building takes
A new cabin business starts with land, construction and approvals, then needs a following. Guests find a new place slowly, through listings, reviews and word of mouth, and the first seasons may be quiet. Plan for that wait in your budget. Whether you may build cabins on a site is a question for the municipality and your lawyer, and it should be answered before you spend on design.
Condition, location and control
Existing cabins may need repairs or upgrades that the price does not reflect, so have them inspected. A new build avoids that but costs you time. Location cannot be changed later, so weigh the site as well as the buildings. Control is where building wins, because you decide the layout, the standard and the guests you want.
- How long can you go without income while a new place fills?
- Would you rather inherit staff and habits, or hire your own?
- Who would you ask to inspect existing buildings?
- Is the site one you could not replace?
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerShould I buy an existing equipment rental business or start one?
- Expert answerShould I buy an existing boat rental business or start one?
- Expert answerWhat should I check before buying a summer camp?
- Expert answerHow can I tell if an equipment rental business for sale is profitable?
- Expert answerWhat should I check before buying a boat rental business?
- Expert answerHow do I find a hunting or fishing outfitter for sale?
- Expert answerWhat should I check before buying a tent rental business?
- Expert answerHow do I find a mini golf business for sale in Canada?
- Expert answerWhat should I ask about insurance before buying a boat rental business?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.