What should I check before buying a closed or distressed campground?

A running campground can be judged on its last few seasons. A closed one cannot. The guests have gone elsewhere, the staff have moved on, and the owner may have stopped keeping records some time ago. So you need to find out what records exist, what condition the park is in and how long it may be before it earns anything again.

What was lost when it closed

Seasonal campers are the steadiest part of most parks, and they sign up elsewhere when a park shuts. Ask who stayed there, why they left and whether any would come back. Look at the reservation history, the website and the reviews to see how the park was run. Do not count on bookings that existed before the closure.

Records and what the sale includes

Ask for whatever records exist: financial statements, reservation logs, maintenance notes and insurance history. Expect gaps, and ask why they exist. Find out exactly what is being sold, whether land, buildings, equipment or only some of them, and what is owed against it. A lender selling a property often knows less about the day-to-day business than an owner would.

Site services and deferred work

Parks that struggle often skip maintenance first. Have a qualified person look at water supply, septic or sewage systems, power pedestals, roads, docks and washrooms. Ask what has been repaired, what has been put off and what an inspector or the local authority would require before guests return. Budget time as well as money for the restart.

The sale process itself

• Ask your lawyer how a sale by a lender or a court-supervised sale differs from an ordinary purchase.
• Ask what protections, if any, you will have after closing.
• Ask your accountant how the purchase should be structured.
• Ask the lender what it will finance on a park that is not trading.

For a park that is still running, the checks in what to ask the owner when buying a campground apply, and the campground due diligence guide covers the full list.