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.
"We go to sleep to the sounds of the waves, have the ability to go for a swim or a beach walk at a moment's notice and often watch the dolphins swim by.
"The property sits into the wildlife refuge and it is not unusual to have oyster catchers, dotterels, fairy terns or even the elusive banded rail out on the front lawn.
"The little stream is home to native fish and our sandstone banks are where the kingfishers nest."