Conducting a comprehensive assessment of the campground/resort before making any purchasing decisions - Buyers’ Guide 4 of 6
Posted: October 5, 2023
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#4 of 6 – Conducting a comprehensive assessment of the campground/resort before making any purchasing decisions.
There is a campground/resort for everyone, and this market comes with a waiting list of individuals eager to experience nature and the great outdoors. The accommodations are designed to be affordable and cater to various preferences, including full-time, seasonal, monthly, weekly, and daily stays.
As a potential buyer, there are several important aspects to consider regarding the property. Firstly, the health of the trees on the grounds should be assessed to ensure they are in good condition and not posing any risks. Additionally, it's essential to evaluate the property's vulnerability to flooding and any potential measures in place to mitigate this risk.
The matter of mineral rights should be clarified in the sale agreement to determine whether they are included or not. The equipment utilized in the business should also be part of the sale, and it's important to ensure its condition and functionality.
Regarding utilities and water supply, it's crucial to determine the source of water provision – whether it's from the city, county, or a well. The condition of the sewer system should be investigated, and the local health department can provide valuable information in this regard.
One should inquire about the capacity of the electric supply to meet the demands of a full park, especially on hot days when electricity usage might be at its peak.
It's essential to ensure that the campground/resort complies with all relevant codes and regulations. Checking for any code violations and verifying, if necessary, improvements have been certified by the governing authorities is prudent.
Evaluating the engineering drawings can provide insight into the park's infrastructure and layout. Additionally, checking for any leaks in the pool and the existence of a preventive maintenance schedule and budget can give a sense of the property's overall condition and management practices.
How about considering expansion opportunities for future growth? Keep in mind that there may be zoning restrictions and approval requirements in place, which could affect the type of amenities you can add or the extent of your expansion plans on this property. It's essential to be aware of these considerations and ensure any proposed changes align with the necessary approvals from the relevant authorities.
In summary, conducting a comprehensive assessment of the campground/resort, including its amenities, infrastructure, utilities, and compliance with regulations, is crucial before making any purchasing decisions.