LIVING THE DREAM
No doubt most of us have been in the situation of being on holiday, having a great time, and thinking, "Woudn't it be great to live like this all year round." The idyllic setting makes us wish we could give up the drudgery of our normal weekday job, and move to the country or seaside to run a pub, or hotel, or even a caravan park!
We are constantly indundated with 'I want a job' adverts from hopefuls looking to become park wardens, 'living the dream'. Sadly only a few get lucky.
Of course, like so many jobs, the reality of being a caravan park warden is far from the peaceful and relaxed job we may imagine it to be. The smiling face that welcomes us on arrival, the cheery wave from the chap riding round on the cute little lawn mower, may hide the tired and disillusioned person who gave up the steady 9-5 secure job back home.
Our guide is meant to give an over-view of the process and problems of buying and running a caravan park. It may help, or it may put off. Either way it may help some decide whether running a caravan park really is "living the dream".

BUYING A PARK
Types of touring or holiday home
There are 5 main types of touring or holiday home:
 • touring caravans
 • motorhomes
 • tents
 • caravan holiday homes (statics)
 • park homes (residential)
There are several other forms of recreational accommodation, including various kinds of trailer tents, pop-up caravans, and wooden chalets.
Buying a caravan park
There are estate agents who handle the sale of caravan parks. Edwards and Partners have offices in Devon and North Yorkshire. They have several parks for sale on their website www.edwardsandpartners.co.uk.

LEGAL ISSUES
Planning permission
Planning permission for new parks may be very difficult to obtain, particularly in the more popular tourist areas. Where they are granted, it is in accordance with the Town and Country Planning Act. Lots of information may be found on the official government website www.planning.odpm.gov.uk
Site Licence
Once the park has planning permission, a licence may be awarded by the Environmental Health Department of the Local Authority, and permits the park to run, but with certain conditions attached. Conditions may be imposed on such aspects as number of pitches, type of caravan permitted, toilet facilities, roads, services, fire prevention, pitch spacing, park layout, play areas, entertainment, licensing etc.
Chalets
These are not subject to a Site Licence. They are still regulated by local planning laws, however.
Tents Site Licences above only apply to caravans, and not tents. Instead, tents must be licensed under the Public Health Act, which will have very similar conditions to those of caravan licences. There is an exception, known as '28 day tenting' whereby parks may use unlicensed fields for tent accommodation for not more than 28 days in a year. This is useful for peak months in the summer to cope with excess demand.
CLs
Certificated Locations can be granted by an organisation like the Caravan Club whereby they issue a certificate for the use of land for not more than 5 caravans or motorhomes at any one time, and this must be restricted to club members only.

TOURING/CAMPING PARKS
These offer pitches for tourers, motorhomes and tents on a daily basis. Planning permission or the Site Licence may not necessarily allow all three types, so do check. All parks must have a minimum level of toilet facilities, and other health & safety regulations may apply as conditions to the Site Licence. There will be a maximum number of pitches specified for the park.
Booking
A non-refundable deposit is usually required for advanced bookings. More and more parks are using computerised booking software to keep track of their bookings, pitch allocation and the accounts.
Pitch fees
These may be charged per pitch or per person. It is usual for these fees to vary according to the season, with higher charges in peak months and Bank Holidays. Some parks charge extra for awnings, groundsheets, dogs, extra car, visiting adults etc. Hot water in the toilet block may be free or charged by meter. All charges are subject to VAT.
Open season
The most common pattern is to open 1st March to 31st October. This may be through the owner's choice, customer demand, or dictated by the Site Licence. More and more touring parks in popular areas are staying open 12 months, as many modern touring caravans have full central heating systems and are no longer restricted to the summer months.
Extra tent capacity
Parks may extend their capacity by opening an adjoining field for tent campers only. The field need not be licensed as long as it is used for this purpose for no more than 28 days in any one year.
Storage
If planning permission allows, parks may offer storage facilities for touring caravans and motorhomes. This is useful for those wanting to keep their tourer somewhere safe between holidays.
Seasonal pitches
Some caravanners like to keep their tourer on one site throughout the season, and then put it into storage for the winter. Parks usually offer much discounted rates for keeping a tourer on a pitch April to October.
Toilet block
Minimum provision: 1 WC, 1 urinal and 2 washbasins for men and 2 WCs and 2 washbasins for women per 30 pitches. Showers should be provided at the ratio of 1 to 25 pitches. Sites with less than 10 pitches are not obliged to provide toilet facilities.

HOLIDAY HOME PARKS (Statics)
Parks with Holiday homes for rent
Known as "letting units" or "hirefleet".
Tenure
Holiday home owners have only a limited degree of security. If they do not pay their rent promptly or do not abide by the rules of the park, they may be given notice to quit.
The BH&HPA (British Holiday and Home Park Association) recommend offering a written contract with a minimum 5 years security. This would be more attractive to customers thinking of paying several thousand pounds for a holiday home to know that they have some degree of security of tenure.
Charges
This is usually per week, costing more in the summer and Bank Holidays, and less off-peak. Prices may vary according to the age of the unit, and the 'mod-cons' it offers.
There is more potential income letting out caravans rather than renting pitches for customers' own vans, but this can be off-set by the increased admin costs of letting on a weekly basis, advertising etc. Parks with owner-occupied units tend to have less visitors than those with weekly letting customers, and so will not make as much on other forms of income, like bar, shop, entertainment etc.
For owner-occupied parks the pitch fee is usually payable annually in advance. Some parks allow this to be paid in 4 monthly instalments. It may be a combined charge, or itemised for basic fee, rates, water, insurance, etc. Electricity must only be charged at cost.
Other income
There are several other potential sources of income:
 • Charging a 'siting fee' to customers binging in their own caravan onto the park
 • Running a shop to provide basic goods and foods
 • Group insurance scheme commission
 • Profit from the sale of holiday homes, both new and used
 • Commission on the re-sale of used holiday homes
 • Commission on letting on behalf of the owners (sub-letting)
 • Profit from re-sale of bottled gas
 • Commission from franchised businesses offering services on-site
Caravan sales
Most holiday home parks do not allow customers to bring their own caravan onto the park. They prefer to have their own stock of new and used holiday homes for sale. If a customer wants to sell up, the park owner may insist on having the right to buy, and then sell on for a profit. If the customer is allowed to sell privately, a commission of 10% - 15% levied by the park is usual practice. If there is a lot of 'movement' like this, income from sales can be significant.
Sub-letting
This varies from parks that do not allow sub-letting, to those that run an agency to find clients for their holiday home owners. If the park owner acts as letting agent, then a fee of around 20% commission is usual.
Code of Practice
A joint publication sponsored by the BH&HPA (British Holiday and Home Parks Association) and the NCC (National Caravan Council) covers such issues as:
 • Selling techniques
 • Removal of a caravan from a pitch
 • Pitch fees and other charges
 • Resale of caravans
 • Substantial changes in arrangements on a park
 • Terms of Licence Agreement - minimum content
 • Complaints procedure
 • Monitoring This document is free, and can be ordered online: Click Here

PARK SERVICES
Water
Water supplies must comply with the Water Supply regulations 1989. On touring parks there must be separate fresh water and waste-water disposal points, and a separate chemical toilet emptying point.
Gas
Where cylinders are used, there are strict rules for their siting and storage. Calor Gas have a free booklet for park operators and managers: www.caravanning-online.co.uk.
EN 1949 is a new standard for the installation of LPG into:
 • touring caravans
 • motorhomes
 • caravan holiday homes
It partially replaces the British Standard BS5482 Part 2. However, BS5482 will be retained in a modified form. Amongst other requirements, EN 1949 harmonises - across Europe - the installation of LPG in touring caravans and motorhomes. For the 2004 season onwards (vehicles manufactured from September 2003), manufacturers should comply with the new standard by ensuring that the LPG supply in new touring and motor caravans is regulated to 30mbar pressure. Full details on the Calor Gas website. www.caravanning-online.co.uk
Electricity
New regulations set by the Office of Gas and Electricity Markets (Ofgem) prevent organisations selling-on electricity at higher prices than they paid for it. Ofgem says the rises are necessary because of changes brought about by the Utilities Act 2000. Now, power can only be resold at the same price it was bought for - whatever that may be, as rates vary between suppliers - otherwise known as MRP (maximum resale price).
Ofgem says the new rules are needed due to the switch from regional electricity boards to a competitive market. And although MRP is aimed mainly at preventing landlords from profiteering at the expense of their tenants, it applies equally to site owners offering hook-ups.
Electricity charges must now be included in the pitch fee. This has caused a furore among part of the touring fraternity, as some do not use electricity on site, and yet now have to pay for it.
PARK FACILITIES
Games room
A good way to keep children amused and occupied if the weather is not too good.
Swimming pool
Indoor or outdoor, these prove to be a popular attraction at the bigger park, reflected in the increased fees that may be charged. Health & Safety guidelines may be found in a booklet entitled "Safety in Swimming Pools" available from the Sports Council.
Childrens play area
Swings and adventure playgrounds are always popular in fine weather. Make sure that all equipment is kept in a safe condition and complies with all British Standards specifications.
Shop
This may not be as profitable on smaller parks, and may well be best combined with the Reception to cut down on staffing costs.
Bar and restaurant
Varying from and small informal bar to a large club building with nightclub, restaurant, and show bar with entertainment. Use of these facilities may be charged separately, or included in the pitch fee or weekly hire charge.
Take-away food
This could range from a fish and chip shop to mobile caters visiting the park by arrangement, paying a fee for the right to do so.

FINANCE
Finding the money to buy
Most people buy a caravan park using partly their own capital and partly borrowed funds. The amount of the loan available is unlikely to exceed 50% of the capital you are able to raise.
You will need to produce a business plan to put to potential lenders, including recent profit and loss accounts, to prove that you will be able to meet the repayments on the loan or mortgage. If such accounts are not available, then you will still need to produce a projected cash flow, preferably with the help of an accountant or other qualified person.
The amount of the loan, the interest to be paid, and the term of the loan may vary considerably. It is wise to shop around to get the best possible deal.

EXPENDITURE AND INCOME
Expenditure
Purchases - goods being re-sold, e.g. shop, restaurant, caravan sales. Running expenses - rates, advertising, marketing, repairs, renewals, depreciation, wages, utilities, insurance, bank and accountancy costs, and other miscellaneous costs.
Income
The gross income is called the 'turnover'. This will obviously vary depending on the size of the park, the type of caravans you cater for, the location, and the quality of the facilities on the park. Holiday homes will tend to bring more income than tourer pitches or tent pitches. Pitch fees and weekly rental will form only part of your turnover. Much income can be made from a shop, gas sales, bar, restaurant, entertainment, etc.

ORGANISATIONS
National Caravan Council (NCC)
Represents the British caravan industry in the UK, including Park Operators, Caravan Manufacturers, Caravan Dealers, and Supplies & Services.
They aim to set standards for the industry, and were jointly responsible for setting up the British Graded Holiday Parks Scheme (1-5 star ratings) with the BH&HPA. They have a trade magazine called "Caravan Business". Web: www.thecaravan.net
British Holiday and Home Park Association (BH&HPA)
Nationally recognised representative body of the parks industry, including all types of holiday, mobile and park homes.
They produce a comprehensive Members Handbook full of information on all matters to do with the operation of a caravan park, as well as all the latest news, developments and new regulations. They have established a number of codes of practice, which all members are required to follow, including the following documents:
 • Code of practice for selling and siting holiday caravans
 • Code of practice for letting caravans
 • Guidelines of good practice for park owners Web: www.ukparks.com