So You Want to
Join a Membership Campground...

Membership Camping is an increasingly popular way to take vacations or plan for retirement. Camping “Marketeers” often claim that membership in a campground/camping club is a way to save money. Others say this is nonsense. Consider the risks and the benefits carefully before you sign a contract.

There are two basic types of membership plans. In a deeded plan, you buy an ownership interest in a piece of real estate, sometimes called an Undivided Interest (UDI). In a non-deeded plan, you buy a lease, license, or club membership that lets you use the facility for a particular number of years. With both types, the cost of your membership is related to the length of time you want to buy, the number of campgrounds you will be able to visit, or the geographic area where your campground(s) you can use are located.

The purchase will cost thousands of dollars. Before you sign any papers or pay any fees, understand what you’re buying. Consider these points when you’re making your decision.

• Practical Factors. One reason you might buy a membership is the convenient location of the facilities. Is it close to your location? Another is pre-retirement planning. Still another reason is the expectation that you might actually “save money” as you camp.

• Consider whether you’ll be able to use your membership year after year.

• Are your vacation plans sometimes subject to last-minute changes, or do they vary in length and season from year to year?

• Are you now — and will you be in good enough physical and financial health to travel and actually use your membership?

• If you’re evaluating a membership plan with units in several locations, ask whether the club has enough sites to satisfy demand.

• Are the facilities located where you can use them (in route to and at your destinations)?

• Will sites be available at the agreed price when you get there? (Peak Season?) The number and convenience of sites are often exaggerated by the marketeers.

• BE REALISTIC as you estimate the actual number of days that you will use your camping membership in the first 3 years. Estimates beyond that time should not be relied upon because your health and financial situation could change dramatically by that time.

  
  

• Investment Potential. Never consider the purchase of a campground membership as an investment. Resale of this kind of membership is usually difficult. You will face competition from the original seller and from other members who simply want to exit the camping system. Camping journals, newspapers, and the Internet contain many offers to sell campground memberships at a fraction of the original cost.
  
  

• Total Costs. The total cost of your camping membership includes payments on the membership contract and finance charges, other expenses, such as travel costs, annual maintenance fees, nightly or seasonal camping fees, utilities, and other miscellaneous charges. Some campgrounds have started charging for things like A/C usage, TV hookup, sewer hookup, etc. that were once thought of as “expected and included” services. Annual maintenance fees can range upwards from $300. Since these fees can rise at rates that exceed inflation, it’s important to ask if there’s a fee cap for your plan. Keep in mind that many of these fees must be paid whether or not you use the membership. To help evaluate the purchase, compare your total costs with costs for similar accommodations and amenities for the same time and in a nearby location.
  Is the membership you are being offered an “Entry level” membership? Will you be required to pay additional money for full use or full access to the campground/camping club facilities?
  
  

• Document Review. Don’t act on impulse or under pressure. Take the documents home to review. Ask a professional or someone familiar with campground memberships to review the paperwork before you buy. If the seller won’t let you take the documents, this isn’t the deal for you. A good offer today usually will be a good offer tomorrow. Legitimate businesses don’t expect you to make snap decisions. Find out if the contract provides a “cooling-off” period during which you can cancel and get a refund. If not, ask to include this clause.
  
  

• Oral Promises. Make certain all promises made by the salesperson are written into the contract. Honest salesmen will not hesitate to put any promise made at the time of sale – in writing. You are being asked to sign a contract to pay a significant amount of money. When a salesman says: “What’s the matter? Don’t you TRUST me?” The answer is NO! Insist that all promises be in writing – and in the contract. It has nothing to do with trust.
  
  

• Reputation Research. Your resort will be a good place to vacation only if it is run properly. Research the track record of the seller, developer, and management company before you buy. Ask for a copy of the current maintenance budget. Learn what will be done to manage and repair the property, replace furnishings as needed, and provide promised services. Will these arrangements be adequate? Visit the facilities and talk to current owners about their experiences. Local Better Business Bureaus and Consumer Protection Offices also are good sources of information.
  
  

• Unfinished Facilities. Purchasing a membership in an undeveloped property is extremely risky, but if you decide to buy anyway, get a written commitment from the seller on when the facilities will be finished.
  
  

• Default Protection. A common life span of a membership camping system is 3-5 years. What will happen to your membership rights in the unhappy event that the one you are looking at files bankruptcy or is sold to another owner?
  
  Learn your rights if the developer or management company has financial problems or defaults. Check to see if your contract includes two clauses concerning “non-disturbance” and “non-performance.” A non-disturbance provision should ensure that you will continue to have use of your membership or site in the event of default and subsequent third party claims against the developer or management firm. A non-performance protection clause should allow you to keep your membership/ownership rights, even if a third party is required to buy out your contract. Contact an attorney who can provide you with more information about these provisions.
  
  • Exit Rights. What happens if or when you decide that you no longer wish to be a member? Usually you cannot simply decide to stop paying dues or contract payments. Be sure you clearly understand the procedure for canceling your membership and any obligation to continue payments. Some sellers conceal the fact that they expect you to pay every year “Until you die”!

In summary:

Dan Hopper
National Association for Members (NAM)