3 Mistakes New Owners Make When Buying a Caravan for Sale

It’s difficult being a first time Caravan Park owner and operator. There are many new aspects to learn and get familiar with before you running the business smoothly and professionally.

Here are some key mistakes that new owners tend to make in their first year of operations. If we can share with you these points, it may help reduce the risk of experiencing a tough introduction to the industry.

Having no relief managers

A hospitality business like a Caravan Park or motel is a full time business that requires a 7 days a week commitment. As you have staying guests, there needs to be an onsite manager available at all times if guests need assistance or have questions that need answered.

If you recently purchased a Caravan Park for sale, your cash funds may be limited due to the recent transaction and therefore you may not be interested in additional expenses such as relief managers. Working 7 days a week for months at a time will take its toll on you and this leads to a risk of burn out. Invest time and effort in finding relief managers that can give you a break every 3 months. It will help with your longevity in the industry.

Maintaining old rates

When starting to run you’re newly purchased Caravan Park new owners tend to shy away from increasing the rates. This is due to fear of upsetting the existing resident and regular visitors. Also if new owners have not worked in accommodation style businesses before then yield management may be a new concept for them.

If the park is filling up easier and you are the new manager, its actually an ideal time to adjust rates as they are already getting used to new management. Many Caravan Park charge the same rates they were charging 4-5 years ago. Rates need to increase each year due to increasing costs and hopefully increasing demand.

Getting too close with residents

If you buy a Caravan for sale with permanent residents you need to establish relationships with your new tenants. In the hospitality business your first habit is to be overly friendly as you would with the tourists that stay.

However it’s best to not get too friendly with permanents. At the end of the day you are still their landlord and if they consider you as a close friend, they will also expect favours when issues arise. Best to not get too close with the residents. Of course be friendly but also stay professional. Attending lots of bbqs and dinners can cause lines to be blurred down the track.

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