RENTING OUT YOUR RV
There’s no denying that owning and traveling in an RV is an amazing to go where you want to go and when you want to go. On the other hand, a motorhome, fifth wheel, or travel trailer is a big investment. Your RV freedom still needs insurance payments, licenses, maintenance, site fees, and so on.
What if there was a way to break even on your RV cost and, basically, travel for free? What if owning an RV could actually MAKE you money instead of being an expense? It can all happen if you’re willing to rent your motorhome or travel trailer.
Look at it this way. Rather than pay to have your RV sitting collecting dust in storage, why not have it collecting money for you? And like any piece of machinery, your RV – especially motorhomes – are better off on the road than sitting idle.
Here’s something else to think about. Add up the annual cost all the things you have to pay for – on your RV – whether or not you’re travelling. Insurance, financing payments, storage. Divide that by 365, and that’s how much you’re spending on your RV every day. Just as an example, someone paying $400 a month in financing, $100 a month for 8 months of storage, and $1200 a year in insurance is spending $18 a day… every day… for the privilege of NOT using their RV. That doesn’t include depreciation either.
There are two ways to rent your RV.
1) Do it all on your own, running ads, making sure all the paperwork is in order. 2) Let someone else rent it for you and do most of the work.
If you got to Google and type in Rent Out Your RV, you’ll find a number of places that will make it easy for you to do so. We recommend using one of these RV rental services in the beginning, so you can learn about the process, and then later you decide if you want to go it alone.
One of the first RV rental helpers was RVShare.com and, as a result, they’re one of the most well-known and trusted. (By the way, I don’t any kind of payment or other benefit for mentioning them, and I encourage you to check out other companies as well)
If you like statistics, you’re going to love this next part. The Recreational Vehicle Industry Association, reported that over 9 million United States (U.S.) households owned an RV in the year 2015 and the average RV owner spent from $5,000 for a tent trailer to $500,000 for an A Class motorhome. It also reports that most of them use their RV for only three weeks every year. That’s a lot of RV’s sitting in the expense column of people’s budgets when they could be in the earnings column.
The following are some sample numbers that can change from year to year, and from area to are, but they’ll give you a rough idea of the money people are earning by renting out their RV’s.
Obviously, the money you earn by renting out your RV will depend on the kind of unit you have. As of the writing of this article, average daily rental prices are between $75 to $200 for tent trailers, $150 to $300 per day for Class C motorhomes, and from $150 to $500 or more per day for Class A RV’s.
One of the advantages to sites that help you rent out your RV is that the listing is almost always free. Typically, the company will take a commission AFTER you actually earn money on your rental. That means no overhead or financial costs for you, the owner.
Let’s go over a quick example. You have a nice Class C motorhome that you can get $250 a day for. Most likely, the renter picks it up on a Saturday and returns it two weeks later on a Sunday. That’s 16 days, or $4000. Your RV rental site takes a commission of 15%, leaving you $3400. You do that four time in total and you earn $13,600. Chances are that covers your financing, insurance, storage, and maintenance – and might even make you a profit. If you live in an area (or climate) where people travel more than the basic summer vacation period, you have even more rental opportunities.
Some enterprising RV owners will even buy a new RV when it’s time to upgrade or downsize, but keep the existing one as a revenue source.
If you want to rent out your RV on your own…
…the most important thing to take care of is your insurance coverage. RV’s can be a lot of fun, but they can also DO a lot of damage and INCUR a lot of damage. Remember – the person renting your RV probably doesn’t have a lot of experience driving a motorhome or towing a travel trailer.
Make sure you protect yourself from damage to the RV due to neglect, accidents, or even vandalism. As well, ensure your coverage protects you if your RV causes property damage, injury, or death to a third party
Yes, you probably have insurance for your RV already, but it’s unlikely that same policy will cover you if you rent out your RV.
There are a lot more details that need to be looked at, and they can vary greatly depending on your location, so please meet with a qualified insurance provider to make sure you and your RV are covered.