Follow correct procedures to boost farm income
With staycation and holiday-at-home becoming part of our daily language post-pandemic, the popularity of touring caravans and motorhomes has never been higher.
With owners needing somewhere secure to store their caravans, there is a big opportunity for landowners to open up a new income stream by offering caravan storage.
While the rewards can be high, it is important to follow correct procedures before you start to make sure the service you are offering is safe, secure and legally sound.
There are several main areas which you need to get right before advertising your service to caravan owners.
You can’t just open the gate and invite caravan owners to park in your field – you need planning permission. Usually, the relevant permission will be B8 – Storage and Distribution, which should include outside storage.
Planning authorities might add conditions to the permission to control issues like limiting the number of caravans on site, specifying the hours you can open, and controlling lighting in the area and impacts on the local community and road network.
Failure to comply with these conditions can prompt enforcement action against you, which could damage the business and incur costly legal fees.
Remember that you are more likely to get planning permission if you start with a small, manageable plan – permission to alter the scheme can be sought later as your business expands.
When drawing up your business plan, make sure you also remember that you will have to pay business rates on the land you are using and, if your income meets the threshold, VAT on your income.
Another major consideration is security – caravan owners want to know that their valuable assets are safe from theft or damage, so taking the time to invest in a secure storage area will pay dividends in the long run.
Strong fencing, secure gates and electronic measures like fob entry and CCTV will all help reassure owners that your site is safe (taking care to ensure your planning permission includes those features where required).
And, if the worst happens, you need to make sure that you have comprehensive public liability insurance in place to cover any losses.
Insurance isn’t an area where you should cut corners. Make sure your policy specifically covers commercial caravan storage and will cover all your liabilities if the need arises. This should include the value of the caravans themselves, as well as any accident or incident on the site which might prompt a claim against you.
The Caravan Storage Site Owners’ Association (CaSSOA) has reported that some storage site owners are earning up to £800 per year per caravan, so the financial potential of diversifying is clear.
Caravan owners can shop around to find the best sites, so it’s worth taking the time to make sure you offer a safe and secure service that customers will seek out.
Suzanne Tucker is associate and head of the planning team at FBC Manby Bowdler
