How To Successfully Rent Out Your RV
If you are looking to rent our your RV and haven’t already read Part 1 of this article, we strongly recommend you read it before reading on. In Part 1, we have reviewed the various ways you can make money by renting out your RV. We went over some of the pros and cons of renting out your RV on your own, through one of those RV “sharing” websites or enrolling your motorhome with a professional RV rental dealer.
Structure For Success
Renting out your RV is an excellent idea for RV owners looking to subsidize their monthly expenses through RV rentals. In addition to the obvious financial enhancements of joining a professional RV rental fleet program, there are usually some very intriguing tax benefits when renting out your RV. For example, in most situations, Section 172 of the Internal Revenue Service Code may be used to depreciate a recreational vehicle enrolled in an RV rental program. Additionally, RV owners may sometimes opt to setup an LLC for their RV rental endeavors. If you are interested in renting out your RV, it is advisable to consult with your own personal tax professional to learn how to best structure your finances.
Assessing and Minimizing Your Risk
Whether you rent cars or vacation condos or bicycles for that matter, most any rental dealer or landlord will tell you there is an element of risk associated with renting out anything. RV rentals are no different. Is your renter who they say they are? Are they properly licensed with a good driving record? Do they know how to operate a motorhome? Does the renter have sufficient insurance or the funds to cover any losses or damage to your RV? These are very important answers to just a few of the many critical questions you will need to ask when deciding who to rent your very expensive vehicle to. Vetting potential renters of your vehicle is the single, most crucial element of renting out your motorhome. Your success – or failure depends on it.
RV Rental Policies and Procedures
Setting firm rental policies and operational procedures is something you will need to do before you even talk about RV rentals. In doing so you will need to establish pickup and return times, establish prepaid fuel and other costs, how much to charge for security deposits, minimum insurance requirements. You’ll also need to create a a maintenance log and establish protocol so that there are procedures in place when the rental customer needs a repair while out on the road. In case of a full breakdown and your customer becomes stranded, you will have to act quickly and provide substitute travel. As that can get quite costly, it definitely helps to have an ICE plan (in case of emergency) in place.
I remember a case a few years back where a renter and his whole family broke down in Moab, Utah. The hydraulic fan clutch had failed, completely immobilizing the RV. After dispatching a mobile service tech out to the middle of nowhere, it was determined the unit had to be towed. The tow alone cost nearly $2000, and we had to take care of the customer during the down time as well. We immediately dispatched a a replacement RV to Moab, rented our clients an SUV and put them up in a nice hotel. It took two days for the replacement coach to arrive. Luckily our clients were understanding and luckily Moab, Utah is a beautiful place with lots of great things to see. Most of all, we were lucky that we had the resources to handle the situation and dispatch a replacement vehicle to our client.
Professional RV Rental Program vs. DIY RV Rentals
OK, so now that you have made your decision to rent out your RV, it’s time to take the next step and get to the important stuff. How are you going to go about it? Of course everyone who rents out their RV wants to make as much money as possible – and carry the least amount of risk. Should you enroll your RV in a professional RV rental program? The business of renting out recreational vehicles can be very lucrative, however if you don’t know what you are doing, it can be a risky proposition. You’ll need to make sure that potential renters of your vehicle are who they say they are. By joining a professional rental fleet program, much of that risk can be minimized if not eliminated altogether.
Where to Rent Out Your RV
Allstar Coaches is home to the most successful, professional RV rental program in the United States. If you are looking to enroll your late model, Class A motorhome in a successful rental program then we would love to talk with you. We’ll explain how the program works, what you can expect and see if it is a good fit for all.