Waipu Cove Cottages and Camping is closing and reopening as Waipu Cove Cottages "50-plus lifestyle village".
Owners Sharleen and Paul Voss, who built and have been running the facility located about 1km from the Cove store for 20 years, said the accommodation and camping industry has turned into a "free for all" and has become extremely challenging.
"To us it appears only registered private operators are required to have resource consents and compliance with the regulations," they said.
The couple have resisted suggestions they should sell the 1.8ha beachfront property - "we love living here" - and have instead opted to refurbish and offer the nine cottages (one, two and four bedrooms) to people aged 50 years and over who also wish to make the property their home.
"To occupy a cottage there is no need to tender you entire life savings but it is subject to a tenancy agreement," they said.
Because of the unique position of the property, adjacent to a wildlife refuge, the consent comes with conditions, for example no cats or dogs.