In this blog post, we will answer the following question: Can you make money from caravans? We will discuss three types of investments and explain their advantages and disadvantages.
Can you make money from caravans?
Yes, you can make money from caravans, and in this article, we will show you exactly how.
The mobile home industry is gaining popularity and is one of the most important markets in the world for outdoor activities. So if you ever thought about having or buying one, it is time to do it.
- You can rent your caravan yourself (e.g. on Airbnb) ;
- “Borrow” your caravan to a rental company;
- Long-term renting (as an apartment).
We will try to explain the advantages and disadvantages of each of the scenarios where your investment is reflected as a productive asset and not as an element that generates expense and depreciation.
Make money from caravans: Rent it yourself
The most natural thing that you can do is to take advantage of it that allows you to recover part of the investment amount and reduce maintenance expenses. Making productive something that was surely bought under the illusion of being used frequently.
Advantages of renting a caravan by yourself:
- If you rent it 100% of the money is yours, you do not have to share it with anyone.
- You control who you rent to
- You can rent it to close friends and family.
- Today everything is easier. A smart device can be installed to track the vehicle and know where it is all the time. (one less worry)
Disadvantages of renting a caravan yourself:
- Maintenance is your responsibility. Cleaning and seeing that everything works well.
- In the event that one of the people to whom you rent the vehicle damages something of great value, through carelessness or ignorance, it could become a headache.
Make money from caravans: Give it to a rental company
Many mobile home rental companies are constantly searching the market for mobile homeowners, increasing their “car park” and thus having the opportunity to offer alternatives to their clients. In general, they are companies that are dedicated to that activity 100% of the time.
Having a great ally at your service is essential if you want to free yourself from the search for potential tempters.
Advantages of lending your motor home to be managed by someone specialized:
- You can hire the services of a company and request a warranty and compliance policy, where the new administrator takes responsibility for your vehicle.
- You can receive a% of the rent or set a flat rate which will help you amortize the initial investment.
- Maintenance, taxes and insurance expenses would be borne by the new administrator.
- You would only limit yourself to setting certain dates to be able to use it.
- You will no longer have to pay for parking your vehicle.
Disadvantages of having a new administrator:
- You will earn less money than if you rented it directly
- You don’t know who uses it.
- Wear and tear is higher
- Surely you will use it much less because the high seasons are the most attractive for your rental.
- Excess mileage will impact the value of your future sale.
- If you do not have an ally to develop good maintenance at the end of the contract, you will end up paying for breakdowns that were not fixed at the time.
Make money from caravans: Rent the caravan as a room or mini-apartment
Sometimes we forget the obvious and overlook something that is ready to be used. Many people have enough space in their garages to safely and permanently park a recreational vehicle. So if you have this option, you have the great fortune of constantly generating money.
Keep in mind that the size of what you offer to the market is related to income expectations. There will always be someone interested in renting what you have, you just have to do the right promotion so that it is consistent and attractive to the real estate market. Vacation or short-term rentals are ideal for the type of offer you provide.
The Airbnb platform is an alternative to be able to offer an available space and take advantage of what you have.
Fixed Income Advantages:
- A large% of the income is yours, you only have to pay a minimum for the intermediation.
- It is generally rented to people who only come for the night.
- It is new, so that gives you a plus when renting
- You can control how many people use the vehicle as a hotel room.
- No engine wear
- New business in your city or the area where you live.
- You can use the vehicle to your liking
The disadvantages of long-term renting:
- You will have to make some modifications to connect the drain and drinking water connections to the house network.
- There is a tendency to persecute and restrict the operation of solidarity economy companies.
- Having to allocate time to answer the many questions that users have.
- There is continuous wear and tear on the interior of the vehicle.
The bottom line
As the caravan owner, you will have the option of choosing free caravan vacation destinations each year, while earning an income that pays for your investment and leaves you substantial profit.
Whether you have a caravan or several static caravans, you have the potential to make money on your investment. While there are earnings to be made, don’t delay – list your camper for rent today!
Please feel free to get in contact if you have any comments or questions about the content.
FAQ on Can you make money from caravans?
Can you earn a living renting a caravan?
It is possible to earn a living renting a caravan. Although, as you will see in the table below, the rental price really depends on the type of caravan you have. This is mainly because some RVs, such as the A-Class, come with more amenities and tend to be roomier and a bit more comfortable.
Is renting a caravan a good investment?
Renting a caravan is indeed a good investment. Depending on the type of caravan you are renting, you could be making between $6000 and $30000 per year.
Do I have to pay tax if I rent out my caravan?
Yes, you will have to pay tax if you rent out your caravan. Rent money is still considered income, no matter your status.
How to buy a used caravan?
To know everything about the past life of your future caravan, here are the good questions to ask your salesperson. There are three documents that the seller must give you: registration card, sales certificate and situation certificate … There is no technical inspection for caravans.