Let us face it. The commitment to owning an RV can be overwhelming, especially if you do not intend to travel or use it regularly.
You also have to consider additional costs such as taxes, registration fees, fuel, insurance, maintenance fees, storage space, among other things.
For some travelling enthusiasts, the extra cost of buying a recreational vehicle is something they want to evade.
Hence, if you are an entrepreneur, you can take advantage of this and offer RV rental services.
Many people wonder whether the RV rental business is a lucrative business or not.
In this article, we are going to discuss this in detail. Stick around to learn more about the business and how much money you can make if you decide to open such an enterprise.
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Is RV rental a good investment, and what’s the average monthly / yearly profit?
Before you start any business, whether you are doing it from scratch or buying an established business, it’s always important that you learn more about it.
One of the questions you should seek to answer is why someone would opt to rent out used cars to travel to various destinations.
To be fair enough, renting comes with significant benefits.
Nowadays, RV enthusiasts, ranging from individuals, couples, families, will opt for this option because they don’t have to worry about buying the best one for their needs.
They also don’t have to worry about maintaining it, creating storage space if they have a small space, or even paying for its insurance.
All they need to do is pay a rental fee, which could range between $100 and $200 per day.
Furthermore, if they don’t plan to go for another adventure in the next few months or years, why should they empty their savings account to buy an RV?
Therefore, the most fitting answer to this question is, “Yes,” RV rental businesses are good, and it’s a profitable investment you should consider, especially if you are an RV enthusiast.
Mathematically speaking, you will need to like $14,000 (average price) to buy a motorhome.
If you hire it for around $100 during the camping season, you can earn up to $3,500 monthly.
That would add up to $42,000 yearly. You will pay up your loan and remain with a few thousand dollars for maintaining the RV.
And remember, the profit, as mentioned earlier, is only for one RV.
Starting an RV rental business – 5 steps to take
The next step is to start it after you understand how much of a profitable investment the business can be. Of course, before you launch, you need to be an RV enthusiast. You need
to be aware of the terms used in the industry, the best RVs to buy, mechanical terms, among other details.
Additionally, having business management skills such as communication skills and marketing skills can aid in pushing your business from a small business to an RV empire.
Other five important considerations you should have in mind include:
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- Buying the perfect RV for your business should be your priority.
Moreover, being an RV enthusiast comes in handy because you need to listen to what your clients need and provide the best option and advice for those needs.
The next thing you need to think about is whether you should buy a new or used option.
Both have their perquisites; however, with the used option, you get a unit that comes with most of the amenities you require for a camper.
Used vans also may not have the issues that a new one normally has.
- Prepare the RV for renting
Once you have the right RV in your hands, the next thing is to prepare it for renting.
You need to ensure that the RV is as comfortable and luxurious for use. Think about what clients would like you to include in their favourite RVs and install them.
Basic amenities such as bathrooms, a kitchen, entertainment units, and heating units are essential for creating a perfect resting place for travellers.
Try including towels, soaps, pillows, nice linens when prepping it, and ensure that the space is clean and neat.
- List the RV for rent
The RV is ready for renting. What’s the next thing on your to-do list?
Start by thinking about the best pricing option for your potential clients.
This will depend on the RV’s type of amenities and size. You’ll need to price it right to attract prospective renters.
You will also need to find the right platforms to list it and ensure that you include a listing within your city.
You should also mention the locations you are willing to deliver the RV and the range.
- Be aggressive in marketing
Listing it is not enough to get people to know the services you offer.
Therefore, you need to market your business on social media.
Create a website and tell your friends and family about the services you offer.
Joining expert forums and attending conferences on RV camping can also help you market your business.
Remember to be clear on your pricing descriptions and take clear and quality photos. They are all important in your marketing efforts.
- Hire an experienced mechanic
Your RV is prone to break down if you don’t maintain it properly. Thus, you need to hire someone who can do the job well.
The mechanic should have prior experience with RVs and can detect and repair common problems within the unit.
RV rental business insurance
When clients are looking for the best RV renter, they will consider insurance.
On the other side, as a renter, you need to think about having the best insurance coverage to protect your most valuable assets, reduce the risk for your business, and provide peace of mind.
If you own more than five RVs, you will need commercial insurance because personal insurance may not guarantee payment of claims in case of a loss.
Ensure that you research the best insurance provider and think about your needs and your costs in the process.
Note that you will need to include the insurance costs while pricing the different clients.
Is RVshare Profitable?
How much are people making on RVshare? RVshare is an online platform that attracts millions of visitors every month.
Renters on this platform earn from $20,000 to $60,000 per year, depending on the type of RV you own. So definitely, RVshare is profitable for most partners!
It’s the first of its kind, and many renters and RV enthusiasts like it because it’s safe to use, you set your rates, terms and conditions, policies, and you can earn a good amount of money per year.
Normally, joining the platform is free; however, RVshare will earn a commission if you land a booking. They will get up to a 25% commission fee.
In fact, some people often become RV renters on a full-time scale if they offer their services appropriately.
Is renting an RV on outdoorsy profitable?
Outdoorsy is yet another platform that RV owners use. It is similar to RVshare since it links owners to renters.
The main benefits of using this site are that they have active customer service, and they will help you achieve a booking by offering tips and providing assistance in case you are stuck.
You also get the opportunity to screen the renter to get more information about them, including their driver’s history.
RV owners on this platform earn up to $40,000 onwards per year.
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Studies show that up to 10.5 million RVs go unused every year. If you are one of the owners
that rarely use their RV, renting it out can be a way to earn extra income without having to do so much.
You can also decide to buy additional RVs types to cater to the increasing need of RV enthusiasts who prefer to rent out an ideal RV than buying one.