Buying a Caravan Park or Holiday Park

A caravan park or holiday park purchase blends a land and buildings transaction with an operating business, and often with a set of long-term residents whose occupancy rights are protected by specific state legislation rather than an ordinary lease. Understanding who lives on the site, under what arrangement, is one of the first things to establish before treating this as a standard commercial purchase.

A Business as Much as a Property

Most caravan and holiday park sales include the operating business, bookings, staff and often plant and equipment such as camp kitchens, amenities blocks and site infrastructure, in addition to the land itself. Request at least two to three years of occupancy and revenue records, a schedule of all sites showing which are short-stay, long-term or permanently occupied, and details of any management or letting agreements in place. As with other combined property and business sales, the contract should clearly separate what is being sold as real property from what is being sold as business assets and goodwill. If staff are employed on site, such as managers, cleaners or groundskeepers, clarify whether they will transfer to your employment and how accrued leave entitlements are to be adjusted at settlement.

Permanent Residents and Statutory Tenancy Rights

Where a park has permanent residents living in their own dwelling on a site they rent from the park, most states regulate this relationship under specific residential parks or manufactured homes legislation rather than standard residential tenancy law, for example in New South Wales and Queensland. These rights typically survive a change of park ownership, meaning you inherit existing site agreements, rent review restrictions and, in some cases, an obligation to buy back a resident's dwelling under defined circumstances. Confirm exactly how many sites are occupied on this basis, request copies of the site agreements in use, and check whether any dispute or tribunal proceedings involving residents are currently on foot, since these carry over to the new owner.

Short-Stay Tourist Sites vs Long-Term Sites

The mix between short-stay tourist sites, powered and unpowered camping sites, cabins and long-term or permanent sites affects both the value of the business and the regulatory framework that applies. A park weighted heavily toward permanent residents behaves more like a housing business with statutory obligations, while one weighted toward short-stay tourism behaves more like an accommodation business with seasonal cash flow. Ask for an honest breakdown of this mix rather than relying on a headline occupancy figure, since it changes how you should assess the ongoing viability of the business you are buying. Seasonal parks in tourist areas can also show strong figures during peak periods that do not reflect a realistic year-round average, so request records covering at least a full year, including the quieter months.

Zoning, Planning and Unapproved Structures

Caravan parks are typically approved under a specific planning permit or development approval that sets the maximum number of sites, permitted structures and conditions around flood levels, setbacks and infrastructure capacity. Over time, parks commonly accumulate structures such as additional cabins, sheds or decks that were never formally approved, and identifying these before you buy matters because responsibility for regularising or removing them usually passes to the new owner. Working through a general due diligence checklist for commercial property purchases is a useful starting point if issues turn up during your inspection, and a title and planning search should confirm exactly what has been approved against what currently exists on site.

Licensing and Public Health Compliance

Depending on the state, caravan and holiday parks require registration or licensing with the local council or a state authority, along with compliance with public health requirements covering water supply, sewerage and food handling if the park operates a kiosk or camp kitchen. Confirm that current registrations are in place and will transfer, or can be reissued, to the incoming owner without a gap in trading, and ask for records of recent health inspections and any notices issued by council.

Environmental and Flood Risk Considerations

Many caravan parks are located on riverfront, coastal or low-lying land, which brings flood risk, coastal erosion and bushfire management into the due diligence process in a way that is less common for other commercial property types. Check council flood mapping and any bushfire attack level assessments that apply to the site, and ask whether insurance has been affected by prior flood or storm events, since this can be a strong indicator of ongoing risk that a standard building inspection would not necessarily reveal.

GST on the Sale

Where a caravan park is sold as a complete operating business, including bookings, staff and site agreements, the sale may qualify as a GST-free supply of a going concern. Where only the land is sold, or the business is wound down before settlement, standard GST treatment or the margin scheme may apply instead. The ATO's guidance on GST and commercial property is a useful reference point, though this is general information rather than tax advice, and the specific GST treatment of your transaction should be confirmed with your accountant.

Due Diligence Before You Commit

A caravan or holiday park purchase rewards buyers who treat it as both a property purchase and a business acquisition, with due diligence to match. Understanding the resident mix, confirming zoning and approvals, and getting clarity on licensing and GST before exchange all reduce the risk of inheriting a problem you did not know existed. A conveyancer experienced in this property type can work alongside your accountant and, where relevant, a business broker, and the same care should apply if you are instead preparing a commercial sale of a park you already operate.