Starting an RV rental business is an awesome idea! According to RVshare listing with an RV rental marketplace allows you to make use of an RV that might otherwise be left sitting in storage. It’s also the perfect option for those who might be interested in purchasing a new RV purely to make a profit from their investment.
All that said, a good return of investment on your RV rental doesn’t necessarily come automatically. No, as an RV owner you will need a bit of know-how and a willingness to put in some work in order to ensure your RV rental brings in enough to make renting it out a worthwhile endeavor.
The good news? Here at RVshare we have all the tips and tricks for creating a successful RV rental business. We’re here to tell you exactly what you need to know to ensure that as an RV owner you get what you deserve from your RV rentals. Let’s get started!
Renting Out Your RV
The first thing every RV owner should consider before starting a rental business? The numbers. Understanding what your RV can bring in—as well as the amount you might spend on your RV rental (and everything that goes into such a business)—will help you get a feel for what to charge, what to expect, and how to budget properly.
Realistic Numbers of Renting Your RV
Before you start renting, let’s take a deeper look at the numbers RV owners should consider when running an RV rental business.
Choosing Your RV Rental Rate
The first thing you’ll need to do is choose your RV rental rate. A lot of factors go into choosing the best rate for your rig.
These include:
– Type of RV
– Size of RV
– Age of RV
– Condition of RV
– Location of RV rental business
– How similar listings in your area are priced
– Bonus: Time of year, holidays, weekends, nearby events
Obviously, a brand new motorhome is going to rent for more than an older trailer. Likewise, an RV that is located right by Yellowstone National Park will rent for more than the same RV that is located in a more remote location.
The best way to go about choosing a rental rate for your RV? We recommend heading to rvshare.com and looking for RVs in your area that match yours in terms of type, size, and age. Pricing your rental close to those that are similar to yours and located nearby is a good bet.
Looking at the Numbers by RV Class
We mentioned above that the type of RV you have will affect how much you can charge RV renters. Here’s a breakdown of the RV classes and an idea of which RV types might bring in more rental income:
– Rooftop Tents and Pop-Up Trailers — These tend to have the lowest rental prices, but are also the least expensive option on this list, so making a nice profit is possible. Expect to charge between $50 and $100 a night.
– Hard-Sided Travel Trailers — These rent for around $75–$125 a night, so typically more than pop-ups and rooftop tents. Small travel trailers often work well here, as they can be towed by a small truck or SUV. Larger travel trailers might need to be delivered, adding to the work of renting one out, but also a potential add on charge to make up the difference.
– Fifth Wheels and Toy Haulers — These bigger trailers pose a problem because not many people have the means to tow one. Therefore, if you choose to rent your fifth wheel, you will benefit from offering delivery. The rental rates for these tend to fall in the $60–$150 per night range.
– Class C RVs — These are some of the most popular rental RVs out there. They are a solid investment and you will be able to charge a moderate-to-high rental rate depending on the age and size of the rig. Expect to get $150–$200 a night.
– Class B RVs and Campervans — These are hot right now, and many rent for a pretty penny. If you are able to do your own van build—especially if it’s a high quality, well-considered one—you will likely get a very nice ROI, but buying a pre-built van can be cost prohibitive for those just starting out. The average rental rate for a van is $100–$200 a night.
– Class A RVs — These bigger motorhomes rent for $175–$275 a night. That said, some people are hesitant to spend so much on a rental. Therefore, while you will be able to charge a lot for a rental rig of this caliber, but may see less renters if you aren’t in a desirable location.
RV Owner Profit Averages
Obviously, your RV rental income will depend a lot on how much effort you put into advertising (lisitng with a site like RVshare gives you access to their marketing, which is free for you), where you are located, and what kind of rig you have to offer. That said, knowing what RV owners make on average can help you get a better understanding of what you might expect.
With rates like those listed above, it might seem like RV owners should be rolling in the dough, and in some cases, this is true. Some owners make $30,000 or even $60,000 in profit in a year! This income can help offset the cost of RV payments as well as regular maintenance and repairs.
RV Owner Increase Maintenance & Wear-and-Tear Cost Per Year
You will need to factor business expenses into your ROI. These expenses include maintenance and fees paid to the rental marketplace in order to have your business on a safe and secure platform, as well as access to marketing and the many visitors the site sees daily. This is something you will want to make sure to factor into your RV rental business budget.
While some claim to only spend $1,000 in maintenance costs per year, we recommend budgeting quite a bit more. Consider things like the cost of replacement tires, cleaning the inside and outside of the RV, and replacement parts (we all know things break when living the RV life).
Is My RV Safe when It’s Being Rented?
Many RV owners wonder if renting their rig out to others is actually a safe thing to do. This is an understandable concern, but we’re happy to say that renting your RV out through a trusted rental site is actually very safe!
Now, if you are very attached to your RV, renting it out may not be the best thing to do simply because the rig then has sentimental value that is not easily replaceable. That said, if you are able to think of your trailer or motorhome as an investment and take measures to protect your investment, you can jump into the rental business worry-free.
Protecting Your Property
As we mentioned before, you will want to make sure you protect your property before you start renting. This includes ensuring you are renting through a reputable peer-to-peer rental company, charging a security deposit, and making sure the insurance offered is adequate. It’s also a good idea to go in knowing what to expect in terms of potential damage so you can be prepared.
Will Things Need to Be Replaced More Often?
As you might imagine, things will need to be repaired and replaced more often when the rig is being taken out regularly. This is a normal part of owning an RV, but many people forget to prepare for it.
Additionally, sometimes things happen due to renter neglect. This is unfortunate, but also very rare. Most renters will treat your RV as if its their own. This is where your security deposit and insurance come into play.
RV Insurance Coverage Items
Speaking of insurance, you may want to know what to look for in rental RV coverage. Below we’ve listed some of the most important things to check for.
Comprehensive and Collision
Obviously, you will want to make sure the insurance that covers your RV when it’s out with renters will cover any accidents or damages.
Roadside Assistance
It’s also a good idea to choose a rental service that offers roadside assistance and towing. This ensures your renters are never left stranded.
Liability
Keep your business protected if a renter files a claim. Liability coverage includes property damage you caused to another’s property, as well as any bodily injury caused to others as a result of the accident.
Cleaning
Finally, you will need to factor cleaning into the mix. RVs get dirty when they are in use. This is just a fact of life and you should expect some dirt when the RV returns from a rental. You can also tack on a cleaning fee to your add on items.
Factoring in time to thoroughly clean the RV after each return (or paying someone to do the cleaning for you) will help keep the rig in tip-top shape, ensuring it’s ready for the next renter and prolonging its life.
How to Start Renting Out Your RV and Making Money
Ready to start making money? Well, in order to earn money on your RV, you need to list it as a rental. In this section, we will help you understand exactly how to go about that.
Where to List Your RV Rental
First, you need to think about where you’re going to list your RV. This is where peer-to-peer RV rental sites can help.
Using an RV Rental Company
As we mentioned above, we recommend using a peer-to-peer RV rental company like RVshare. Doing so means you will be well insured. It also makes it super easy to put together a professional listing. Of course, it’s also nice to be renting through a reputable platform that renters trust.
RV Rental Site Costs
When listing on a marketplace, it is important to know that there are some fees involved to keep the platform up and running and to provide marketing efforts to get as many eyes on your listing as possible.
Pros and Cons of RV Delivery and Setup
Considering offering delivery and setup for your customers? If you are looking to rent a large trailer or a fifth wheel, this is an excellent idea. That said, it is important to understand the pros and cons of this type of rental.
Pros of Offering RV Delivery
– You’ll increase your customer base to include those who aren’t comfortable driving a big rig.
– You can rent out your large trailer that many customers do not have the equipment to tow.
– Have peace of mind knowing you are the only person driving your cumbersome vehicle.
– Potential to earn more income by charging a delivery fee.
Cons of Offering RV Delivery
– Delivering and setting up the RV takes more of your time.
– Customers may expect more from you at checkout/pickup (dumping tanks, cleaning up the site, etc). Just be clear in your description what is included with delivery and you shouldn’t run into any problems.
Advertise Your RV and Attract Great Renters
Listing on a popular website is a great first step, as they will likely do some advertising for you. However, in order to ensure a steady stream of great customers, we actually recommend doing some of your own advertising as well.
This will look like different things for different rental businesses. Depending on your target audience, you might find it makes sense to become involved in the community, attending community events and getting the word out about your rig there. In other cases, advertising on social media is your best bet. Meanwhile, there are those who get the most mileage out of advertising to one niche group, such as NASCAR fans or those who attend music festivals.
Rent Out Your RV During the Best Times
Wondering when to list your RV? Well, it never hurts to list right away. That said, knowing the camping season in your area will help you get an idea of when your busy season might be. Make sure your RV is ready and 100% available during the busy season in order to maximize your profits for the year.
You Just Secured Your First Renter—Now What?
Once you list and advertise your RV, the next step is to wait for a renter. In some cases, this can take a bit of time, but in other cases you might get a rental request right away. No matter when you get your first rental, you will want to make sure to get these things done before you send the RV out.
Getting Your RV Ready
The first step is, of course, ensuring the RV is clean and fully functioning for your renter. You will also want to make sure you have the right paperwork and documents gathered up.
Creating an RV Rental Manual
Included in the papers you get together for your first RV rental should be an RV rental manual. This doesn’t have to be very long or elaborate, but should include basic information on how to use the RV, as well as checklists for setting up and tearing down camp so nothing gets missed.
What Documents are Needed?
Other documents you’ll need are the departure and return forms provided by your rental platform. We also recommend including a rental agreement for your renter to sign so you know they understand your rules.
Walk-Through and Training
With the RV cleaned up and the paperwork gathered, the last thing to take care of before your RV heads out on an adventure is doing a renter walk-through. You’ll want to be thorough during this walk-through, making sure to cover such things as…
- How to plug into electricity.
- How to hook up the water and/or fill and use the freshwater tank.
- How to dump the waste water tanks.
Keep in mind, the more you cover in the walkthrough, the less likely your renters will be to mess something up or call you for help later. Everything you cover here should also be included in the aforementioned renters’ manual for easy reference during their trip.
The Learning Curve
Every RV owner goes through a bit of a learning curve when they first start their RV rental business. This is inevitable because it’s impossible to predict what exactly you will need to know about your particular rig, your particular set of renters, and your area. The best you can do is learn everything you can about your RV, study up on the art of renting, and offer exceptional customer service.
When problems do arise, don’t let them get the best of you. Instead, use your mistakes as learning experiences in order to improve your business and propel you forward.
Building Out a Fleet of RV Rentals
After several rentals you will find your groove, and renting out a single rig will become easy peasy. You can, of course, choose to stick with that one rental RV, but if you’re having good success with the one rig, you might want to look into building out a fleet of rental vehicles.
Building a fleet is great because it means more potential for income. That said, it is also more work, so you will want to make sure you have the time/manpower to devote to your rental fleet.
Obviously, you will want to make sure you have the funds to pay for more RVs. In some cases, the income from your current RV will cover the payments on both the current rig and the new rig, and in such a case you would absolutely be good to go.
Follow This Formula and You will Be Happy with Your Return on Investment
So what exactly is the key to success? What is the formula you need to follow in order to ensure you get a good ROI?
Honestly, it’s as simple as this: Invest in a quality RV (we recommend a class C or small trailer), choose a trusted RV rental marketplace, set a fair rental rate, know your target audience and advertise to them, offer excellent customer service, expand only when your business is ready for another rig, and enjoy making new friends while you introduce them to the amazing world of RVing!
