If you have rented your RV to others, please jump in here!

[TriumphGuy]

Hello everyone,
First, a disclaimer (sorry to lead with this). I've done a few searches here and realize this question will elicit a large number of "don't do it, people will destroy your RV" responses.

Respectfully, I want to hear from actual people who have rented their RV. Not from people who think they know what will happen if I rent my RV.

Having said that, I have no plans of renting our "second home." Our Tiffin is kept at-the-ready and full of our personal stuff, just like our stick and brick. Not interested in renting out our Class A for many reasons.

What I'm talking about is buying a decent condition used Class C or B or van, to place it into a rental program to generate income. Like buying real estate to dedicate towards renters. Yes, there will be hassles. But can the business model work as an owner?

I briefly talked to RVShare and they weren't too keen to share any rental data with me (surprise). By their answer, I think their business model and marketing is targeted towards people looking to offset some costs of ownership, not so much "make money with us."

But I have spoken with one person who has put their personal RV into RVShare (Class C) and it's doing so well he is considering buying another to dedicate towards rentals. So I'm not the only one seeing a trend here.

So please - if you have some personal experience and data to share I'm all ears. It seems possible to keep this idea "in the black" but it will take the right balance of initial investment, maintenance and repair, insurance (and of course, income!) to justify.

*** flame suit on ***

Thanks!

[Gdetrailer]

DiskDoctr wrote:
Since you are well experienced with RVs...are you skilled at and interested in fixing up RV's?

If so, that might be your niche. Buy RVs that need something (even if you have just one repair concentration area), fix them up to rent and then sale.

4 options to increase rental profits.

1. Decrease cost
2. Increase value and price
3. Extend longevity after ROI goes black
4. Lump sum resale

Carefully buying fixer-uppers and doing professional repairs can hit all 4, with the option of trading 3 for 4 or vice-versa.

Almost makes you an RV dealer, but with rentals LOL. Could be a good analog when pitching to your insurance company, business partners (CPA/Atty) LOL.

Good luck!

That is a rabbit hole I would NEVER recommend to even my worst enemy.

Yeah, I sort of have some limited experience with fixing and selling used trailers..

Bought one to fix up for myself, paid $1800, dragged it home to find out that the entire front and most of the roof structure was shot.

Took six months and $2K of my money to make it usable.

New paneling through out, had to custom make new upper cabinets (old ones water damaged and fell apart as I removed them), new flooring, made a new couch/bed frame(previous owner ripped out the couch/bed frame and left me with a solid 3/4 plywood bed)..

Used it two years and bought a slightly bigger trailer which also needed a gut job but was a much better fit for us..

Sold the first one for $1800 and it took me NINE MONTHS to sell it at that price.. Most offers were $800, I would have considered BURNING IT TO THE GROUND before selling it for that price.

My current TT is the LAST AND FINAL RV I EVER PLAN TO BUY OR OWN and I will most likely burn it to the ground before considering attempting to sell when I am done camping..

I HATE losing money and RVs are a loss..

You people have been watching too much of that made for TV reality garbage to believe you can or will make money on flipping RVs or even renting them..

[westernrvparkow]

TriumphGuy wrote:

bikendan wrote:
Did anyone read the OP's post?

He asked for input from those who HAVE rented their RV. Not from those who just object to the concept.

The majority of responses are NOT from those who have actually done it, which the OP specifically asked to not post.:S

I have my opinions but I've never rented my RV, so I honored the OP's request.

You get the awesome award today. Thanks for reminding everyone.

I do appreciate the responses, but I'm not talking about renting personal property. I'm talking about creating a business entity to own the motorhome and manage everything. I am researching to see if there is a sustainable business model hidden in between what everyone else is doing today. Our own personal Class A is not a part of the equation 🙂

I have a good friend who owns vacation rentals and makes good income with it. He doesn't depend on the appreciation over time, he chooses where he invests so that everything has good cash flow. If he thinks it will generate the income, he puts his money into it. He doesn't care for paper assets and for my part I have enough in those and want to try something different.

So his approach made me wonder if I could have a go at a rental RV and - like him - not depend on the appreciation but do my market research and get the right unit marketed in front of the right people.

For example, look at the trends towards more motorized RVs and what Millenials are gravitating towards. You'll find some interesting stuff. Vans and B conversions are a big thing on YouTube. There's many people who aspire to the experience but can't afford to buy. Compare the typical CruiseAmerica fleet to their needs, and what's missing?

DiskDoctr wrote:
Perhaps if you can buy a used unit that has had its initial depreciation, rent it 1-4 years and then sell it at near your original purchase price?

Unlike real estate that still has resale value that is often HIGHER over time, the RV value depreciates with very few exceptions.

Buying an RV "right" so you can resell it and make money- then rent for a month or two in between...that might be a profit generator. But if something happens and you can't sell it or have to discount or damage, etc...

This is what I'm thinking about - I've been around RVs for almost 2 decades and can smell a good deal when I'm near it. I browse listings from time to time and see deals come and go. Most of what I've bought, I've sold for the same a few years later.

DownTheAvenue wrote:
As a lawyer, I can tell you in owning and then renting any vehicle, your biggest concern is protection- protecting yourself from any liability and protecting your asset from damage and theft. I bet any agreement you engage in with a rental firm protects them more than it protects you. Remember, any insurance you now have for certain will not cover when rented. You will need a special policy for that. Make sure you have your bases covered if you decide to place a personally owned asset into any rental arrangement.

Thanks for that great feedback. Just after a cursory look it's clear that the rental firm is in business for them, not you. As I've learned from other experiences, a conversation with my CPA and lawyer is never a bad idea 🙂

Well keep the ideas coming. Helps me to think more things through.

Thanks!

Sounds like you have it all figured out and really didn't want or need anyone else's imput. However, not being concerned with appreciation, depreciation or resale is an incredibly odd financial position. Even if you were to get a fifteen percent net cash flow over 10 years, if your original investment cannot be recovered, your net income on that investment drops from a 15 percent rate of return to something much less than a four percent compound rate. There is a reason there are hundreds of thousands of people who own rental real estate and almost no one in the rent a couple of RVs business and I seriously doubt it is because you thought of something no one else has.

[DiskDoctr]

Since you are well experienced with RVs...are you skilled at and interested in fixing up RV's?

If so, that might be your niche. Buy RVs that need something (even if you have just one repair concentration area), fix them up to rent and then sale.

4 options to increase rental profits.

1. Decrease cost
2. Increase value and price
3. Extend longevity after ROI goes black
4. Lump sum resale

Carefully buying fixer-uppers and doing professional repairs can hit all 4, with the option of trading 3 for 4 or vice-versa.

Almost makes you an RV dealer, but with rentals LOL. Could be a good analog when pitching to your insurance company, business partners (CPA/Atty) LOL.

Good luck!

[Jerseydevil]

Well I have not rented, but people ask me all the time.
My mechanic does house call service and is in rental business. He says his rental business in NJ booms for 6 months here, and demand is high, but demand is dead in colder weather and his insurance remains high. One thing he learned was to stop putting hub caps back on rims as those costs add up, and make sure every rig has back up camera...lol. He said, Everyone wants the experience but most can not afford to buy, maintain, store, etc. Keep in mind he is a mechanic and does most of maintenance/cleaning himself and also has a lot he owns to store all rigs. Unfortunate for me, he decided to move his business down to Florida next year for year long rental market and lower property costs/tax. So it seems for rental business to be successful location for yearly demand, low maintenance costs, low storage costs are key.

[TriumphGuy]

bikendan wrote:
Did anyone read the OP's post?

He asked for input from those who HAVE rented their RV. Not from those who just object to the concept.

The majority of responses are NOT from those who have actually done it, which the OP specifically asked to not post.:S

I have my opinions but I've never rented my RV, so I honored the OP's request.

You get the awesome award today. Thanks for reminding everyone.

I do appreciate the responses, but I'm not talking about renting personal property. I'm talking about creating a business entity to own the motorhome and manage everything. I am researching to see if there is a sustainable business model hidden in between what everyone else is doing today. Our own personal Class A is not a part of the equation 🙂

I have a good friend who owns vacation rentals and makes good income with it. He doesn't depend on the appreciation over time, he chooses where he invests so that everything has good cash flow. If he thinks it will generate the income, he puts his money into it. He doesn't care for paper assets and for my part I have enough in those and want to try something different.

So his approach made me wonder if I could have a go at a rental RV and - like him - not depend on the appreciation but do my market research and get the right unit marketed in front of the right people.

For example, look at the trends towards more motorized RVs and what Millenials are gravitating towards. You'll find some interesting stuff. Vans and B conversions are a big thing on YouTube. There's many people who aspire to the experience but can't afford to buy. Compare the typical CruiseAmerica fleet to their needs, and what's missing?

DiskDoctr wrote:
Perhaps if you can buy a used unit that has had its initial depreciation, rent it 1-4 years and then sell it at near your original purchase price?

Unlike real estate that still has resale value that is often HIGHER over time, the RV value depreciates with very few exceptions.

Buying an RV "right" so you can resell it and make money- then rent for a month or two in between...that might be a profit generator. But if something happens and you can't sell it or have to discount or damage, etc...

This is what I'm thinking about - I've been around RVs for almost 2 decades and can smell a good deal when I'm near it. I browse listings from time to time and see deals come and go. Most of what I've bought, I've sold for the same a few years later.

DownTheAvenue wrote:
As a lawyer, I can tell you in owning and then renting any vehicle, your biggest concern is protection- protecting yourself from any liability and protecting your asset from damage and theft. I bet any agreement you engage in with a rental firm protects them more than it protects you. Remember, any insurance you now have for certain will not cover when rented. You will need a special policy for that. Make sure you have your bases covered if you decide to place a personally owned asset into any rental arrangement.

Thanks for that great feedback. Just after a cursory look it's clear that the rental firm is in business for them, not you. As I've learned from other experiences, a conversation with my CPA and lawyer is never a bad idea 🙂

Well keep the ideas coming. Helps me to think more things through.

Thanks!

[bikendan]

Did anyone read the OP's post?

He asked for input from those who HAVE rented their RV. Not from those who just object to the concept.

The majority of responses are NOT from those who have actually done it, which the OP specifically asked to not post.:S

I have my opinions but I've never rented my RV, so I honored the OP's request.

[Lynnmor]

While I don't have an RV to rent, I do own and rent the property next door only to have some control of what happens there. I can assure you that you will never make a cent in the rental business. As you have read above, renters will not take care of the property and all of those repairs will prevent any profit. Years ago when property values increased greatly, that was the only hope for financial gain. Now with little increase in value it is a fools game. An RV will only decrease in value, even if kept in a hermetically sealed box, and I can see no reason to get into that business.

[Dennis12]

If your broke and don't give a ship rent it. If not do not even consider it.

[DutchmenSport]

Chuck_thehammer wrote:
...

a friend lets a friend use it for on hour or a day..

...

This is an interesting statement. I live in the country with neighbors on both sides of my property. Down the road is a cross road (country roads) and down that road was, what appeared to be, an abandoned house.

Every week-end there were a group of "red neck" idiots (literally) hanging out there driving their 4 wheel drive vehicles through mud, racing engines, and then after dark begin shooting across the fields.

The neighbor beside me and I talked about this situation several times, but really couldn't do anything about it, since we had no investment in the property, just noise, autos racing in mud, and shooting (which is not uncommon where I live).

Until one day (or week-end night I should say, bullet holes appeared in my neighbors garage AND the side of the church down the road from us.

My neighbor called the county sheriff and they did some investigating. Found out, the abandoned house actually did belong to someone who lived in Indianapolis and supposedly he bought it so fix it up and eventually live in it.

One day, my neighbor saw a vehicle parked at the house and decided to ask questions. Turned out to be the actual owner of the property, and when my neighbor explained the gun fire and two building shot full of holes, he became outraged and explained:

He let a friend of his have access to the property on the weekends for private use, under the assumption, bonfires and family get togethers. He did further investigating with HIS friend and HIS friend invited someone else to the house and it was the FRIEND of the FRIEND that took the liberty to go over on their own, do the mud 4 wheeling and the gun shooting! Of course the owner was outraged, apologized to my neighbor for the bullet holes, and forbid HIS friend from every setting foot on the property again!

Ever since, it's been quiet across the field!

True story! Never trust anyone with YOUR property!

[DiskDoctr]

Perhaps if you can buy a used unit that has had its initial depreciation, rent it 1-4 years and then sell it at near your original purchase price?

Unlike real estate that still has resale value that is often HIGHER over time, the RV value depreciates with very few exceptions.

Buying an RV "right" so you can resell it and make money- then rent for a month or two in between...that might be a profit generator. But if something happens and you can't sell it or have to discount or damage, etc...

[Chuck_thehammer]

I have repaired to many cars or trucks.

a friend lets a friend use it for on hour or a day..

people do not respect others property.. now of ever...

look at the Fema trailers.. disaster help..
New trailers destroyed in weeks to months.. many stories.

[BadgerMcAdams]

westernrvparkowner wrote:
Forget what can happen. Just view it as a math problem. What can the rents generate? Be realistic, plan for down time between rentals because you will have to clean and service it and you cannot be sure everyone will return it on time.
Next, deduct expenses. Repairs, rental commissions, insurance, cleaning expense. Supplies like propane, toilet paper, dishes etc.
Don,t forget taxes and the added bookkeeping costs. Finally figure in depreciation and declining rents over time. Unlike real estate, age very much impacts rents. It is likely you will have to lower you rent every year as your rig gets older, unlike real estate. Finally, unlike real estate, at some point your rental unit will become close to valueless.
Put it all together, then redo your numbers by decreasing your rent estimates by 25 percent and incrasing your costs by fifty percent and you will then have a fairly accurate estimate of how your investment will really pay off. Please note there is no place to account for the sleep you will lose, the Prozac you will need or the time you will spend chasing all the loose ends.

x2

[westernrvparkow]

Forget what can happen. Just view it as a math problem. What can the rents generate? Be realistic, plan for down time between rentals because you will have to clean and service it and you cannot be sure everyone will return it on time.
Next, deduct expenses. Repairs, rental commissions, insurance, cleaning expense. Supplies like propane, toilet paper, dishes etc.
Don,t forget taxes and the added bookkeeping costs. Finally figure in depreciation and declining rents over time. Unlike real estate, age very much impacts rents. It is likely you will have to lower you rent every year as your rig gets older, unlike real estate. Finally, unlike real estate, at some point your rental unit will become close to valueless.
Put it all together, then redo your numbers by decreasing your rent estimates by 25 percent and incrasing your costs by fifty percent and you will then have a fairly accurate estimate of how your investment will really pay off. Please note there is no place to account for the sleep you will lose, the Prozac you will need or the time you will spend chasing all the loose ends.

[2gypsies1]

Why not take that money and invest it?