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CoverQuest — Aug 11, 2017
You've thoroughly enjoyed the months you had set aside for RVing, and you have a myriad of memories that you'll happily share with friends and family until your next adventure. You're preparing to put your RV in storage, but the thought of spending money on a storage facility and continuing your loan payments when no one is even using the RV makes you cringe.
Or maybe you've hit an unexpected bump in the road of your finances. There was an expense you weren't planning on, or your investments aren't performing the way you thought they would. You need to figure out a way to earn some extra money quickly, and you'd rather not deliver pizzas.
Renting your RV solves several problems all at once, and offers some real benefits. You'll have the ability to take additional tax deductions, and your RV won't be subject to the risk of pest infestations or mold issues that can occur with long-term storage. Even if you're using anRV cover and storing properly to prevent your RV from damage, the extra income you'll earn from renting can help pay the expenses of owning your RV.
How Much Can You Earn Renting Your RV?
RV rental has grown in popularity over the last few years, as the "sharing economy" has gained momentum. Services like Airbnb and Turo are attractive to owners who want to earn extra money as well as to renters who want something that traditional rental companies don't offer. The demand exists, and RV owners can take advantage of it for extra income.
How much can you earn? It depends on the type of RV and the area of the country you're in, but the average RV owner earns between $10,000 and $20,000 per year renting out their RV. Average per-day rental prices run between $75 to $175 for tent trailers, between $125 to $250 per day for Class C RVs, and between $150 to over $300 per day for Class A RVs.
Heath and Alyssa, who write a blog about their RVing adventures, said this about their first experience renting: "Will we rent the RV out again? Heck yeah! Outdoorsy paid us $680 for four nights. That’s a killing considering we would be paying to keep our RV at an RV park in Austin during those nights anyway."
Renting your motorhome, trailer, or camper isn't quite as simple as applying for a job at the local Walmart to earn money on the side, but it's worth considering since you'll free your time to do much more enjoyable activities. This guide will tell you the essentials of what you need to know if you want to rent your RV for extra income.
1. Get Your Recordkeeping System in Order
Don’t forget to keep good records! You'll have to track any money you earn as a result of renting, and you’ll need to file a Schedule C with your taxes for the year. However, earning income from your RV means that you're technically operating a business, so you can take tax deductions that wouldn't otherwise be available to you. You'll be able to deduct maintenance expenses, cleaning expenses, and other costs.
It's a good idea to create a system you can use to track expenses and income associated with your RV rental. Careful tracking will make tax time much easier, and will also ensure you don't forget any deductible expenses. This system can be as simple as an Excel spreadsheet or as complex as a double-entry accounting bookkeeping software program — the important thing is that it works for you. Depending on how often you plan to rent your RV, it may be easier to use a subscription-based software system like Quickbooks or Xero.
2. Get Business Advice
While not absolutely necessary for everyone, we recommend meeting with business professionals who can guide you with advice to reduce risk and help ensure profitability. A CPA can tell you which expenses you can deduct and, if you're using the RV for personal as well as rental purposes, what portion. An insurance agent will advise you on what type of insurance you'll need and how much.
You'll also want to talk with an attorney who can create a rental contract for you if you're not using a listing service that includes one. Having a clear rental agreement that spells out exactly who’s responsible for what, and the consequences if either party doesn’t abide by the contract, will save many headaches down the road.
And an attorney can help you set up the best legal structure for your particular situation if you’re planning on renting frequently or if you want to grow your rental business. These professionals will give you peace of mind that you're mitigating the real risks that come with renting, and they'll help you make sure you're maxing out the financial benefits.
3. Clean and Prepare the RV
Renters expect your RV to be clean and free of personal items, so you'll need to make sure you give it a good scrub-down and remove anything that wouldn't belong in a rental. However, there are a few items that you can (and should) leave in the RV: cleaning supplies, dishes, silverware, pots and pans, coffee maker, hand soap, towels, and bed linens. You may also want to consider adding seat covers, which will help protect seats from wear and tear.
When cleaning and preparing your RV, just consider what you'd expect when renting a hotel suite and what you'd appreciate in a rental for yourself. Aim to provide the things you can (without eating up your profit) that you know renters would need or appreciate. The better experience you can give renters, the more business you'll get from good reviews and word-of-mouth recommendations.
4. List the RV
Online services like RVshare.com or Outdoorsy.com are a convenient way to list your RV rental. Some services include insurance, DMV background checks, and other benefits in addition to the listing service. You'll want to research different companies to learn what each offers and what their fees are, in order to determine which is right for you. Also be sure to look for ratings and reviews on each company to find a reputable one.
When considering the geographic areas to list in, remember that you'll have to get the RV to the renter’s location, so you won't want to list in areas you aren't willing to transport to. Also keep in mind that people often rent RVs as extra space for visiting family and other purposes that don't include destination vacations — just because your hometown isn't a destination, doesn't mean that there isn't a market for RV rentals there.
To create an attractive listing that will make people want to choose your RV, include several clear, bright photos of both the inside and outside, and write an engaging description. Be sure to add information about yourself and your family, such as where you enjoy RVing and what you like to do while on the road. It's also smart to include a layout of the RV and the amenities offered. Clearly outline your terms and answer any questions that potential renters may have. How many miles are included in the price? How much extra will renters need to pay for each mile over the limit? Where are renters allowed to take the RV? Where are they allowed to park it? What about a security deposit to cover any damage?
You'll want to price your rental competitively, but also at a point that takes into account the expenses associated with renting, such as cleaning, delivery, listing fees, etc. After all, you're in this to make money!
5. Market the RV
If you're not relying on a listing service (or even if you are, but you want to get more customers more quickly), you'll need to do some marketing. You don't have to have a complex marketing plan or a big marketing budget, but you do need to consider how you're going to get the word out that your RV is available for rental.
One of the best tools you can use for marketing is free: social media. If you have friends and family on Facebook, Instagram, Twitter, or Pinterest, announce your RV’s availability, share your photos, and ask the people you're connected with to share with their own friends and family.
Also consider listing in the newsletters of any clubs or organizations you're involved in. Even simply telling the people in your social circle about your rental can stir up business. Anywhere people who are similar to you are gathered is a good place to advertise your RV rental.
If you're treating your rental like a true business and you want to earn a significant income from your RV, consider low-cost advertising like local newspaper classifieds or Facebook ads. If you target your ads appropriately, making sure that they reach the people who are looking for RVs available for rent, then the money you make should pay for the advertising many times over.
An RV as an Investment
Typically, an RV is considered a depreciating asset, like a car or other vehicle — you're spending money to enjoy the use of the RV, and it loses value over time. But when you rent your RV, you've turned that expense into an investment that earns money for you. If you do your homework thoroughly and put measures in place to protect that investment, renting your RV can provide a good source of additional income that will still allow you to enjoy the RV whenever you like and continue your adventures.
Next Article: How to Winterize Your RV for Storage
Topics
- RV Storage
- RV Rental
- RV Savings
- Monetizing RV
