Is RV rental a good investment?

In this blog post, we will answer the following question: Is RV rental a good investment? We will explain how much money you can make by renting your RV and give you a few good reasons to rent your RV, especially when you are not using it. 

Is RV rental a good investment?

Renting your RV is a good investment, a great way to make it profitable and ensure that your vehicle costs you as little as possible! In the table below you can see how much money you can make from RV rental (on average).

RV rental profits average

Type of RV	Rental price (per night)	Rental price (per week)	Potential earnings (by year)
Class A	$ 175- $ 275	$ 1,225- $ 1,925	$ 15,000- $ 30,000
Class B	$ 100- $ 200	$ 700- $ 1,400	$ 12,000- $ 25,000
Class C	$ 150- $ 200	$ 1,050- $ 1,400	$ 13,000- $ 27,000
Touring caravan	$ 50- $ 125	$ 350- $ 875	$ 9,000- $ 19,000
Fifth wheel	$ 60- $ 150	$ 420- $ 1,050	$ 11,000- $ 22,000
Pop-up caravan	$ 50- $ 100	$ 350- $ 700	$ 6,000- $ 13,0000

Why is RV rental a good investment?

Renting out one’s RV has several advantages for the vehicle owner:

• Bring additional income: If your vehicle is successful and is regularly rented by individuals to go on vacation, you will be able to earn substantial income each year. This cash can be used for many things such as paying for vehicle maintenance or insurance costs.

• Reduce your monthly repayment instalments: Buying a motorhome often goes hand in hand with a significant financial investment. To spread out their expenses and avoid impacting their cash flow, many individuals opt for a bank loan and pay monthly payments for several months or years. 

The income from the rental of the motorhome can help repay monthly payments, or even help owners pay off their loan faster if the vehicle is successful with individuals.

• Avoid premature degradation of the vehicle: An RV that is used little and left somewhat neglected is susceptible to damage more quickly than a vehicle that is used daily. By regularly renting their vehicle, the owner ensures that it does not deteriorate prematurely (assuming of course that the individuals who rent the vehicle take care of it).

Can your RV be rented as is?

Before renting out your motorhome, make sure that the vehicle is in poor condition. The vehicle must undergo a complete overhaul at a garage because the vehicle must comply with the legal provisions in terms of technical control. If problems are identified (malfunctions for example), they must be resolved without delay. The vehicle should not be leased until the identified issues are resolved.

Once the possible mechanical problems have been resolved, it will be necessary to look into the layout of the motorhome and the decoration. Is all the equipment functional and in good condition? Is the interior nice? Examine every nook and cranny of your vehicle and see if any improvements are needed.

Where can you put your RV for rental?

As with car rental between individuals, there are specialized sites on which motorhome or van owners can offer their vehicles for rental. They just need to create a profile and post an ad. The letter must contain a certain amount of information such as:

• the motorhome model
• the number of beds
• the weight of the vehicle
• the rental price per day
• the number of miles travelled
• the type of gearbox (manual or automatic)
• vehicle fuel consumption per mileage 
• the equipment offered
• the possibility of using the vehicle abroad or not

All of this information will help individuals make their choice.

Do I need to update my insurance if renting my RV?

The rental of RVs raises many questions and one of the most important concerns is vehicle insurance and the management of possible claims caused or suffered by customers.

You should know that many platforms have formed partnerships with insurers to cover claims that may arise during rentals. The deductible, compensation and level of support offered to vary by platform. It is usually the people who rent the vehicles who choose the level of coverage at the time of booking.

If you do not want to rent your motorhome through a platform, tell your insurer about your rental plan and ask them for advice. An expert will be able to direct you to the most suitable offers to insure your vehicle and will offer you personalized options.

How to define the rental price of an RV?

The rental rates are freely defined by the motorhome owners. These take several factors into consideration to find the right price, such as:

• the age of the vehicle
• the number of beds offered
• the equipment offered to customers

In general, it should be noted that new vehicles, with a well-thought-out layout and offering a large number of beds and practical equipment, are often more expensive.

To find the perfect price, check out listings from other RV owners, especially those that feature vehicles that are the same or very similar to yours.

Can you rent your motorhome without going through a dedicated platform?

It is possible to rent out your motorhome without going through a dedicated platform, but this option comes with a certain number of risks and constraints.

The risk of stumbling across unserious profiles is increased because you will not have access to any reference and evaluation, as can be the case on a dedicated rental platform.

You will also need to draw up a rental agreement yourself and make insurance arrangements, if necessary. The insurance costs at your expense can be significant. It should also be noted that in the event of a dispute, you will not have an interlocutor to turn to. You will have to manage everything from A to Z.

What are the advantages of rental platforms between individuals?

The platforms dedicated to the rental of motorhomes between individuals offer many advantages:

• posting of ads is free
• you have access to user reviews (so you can easily identify trusted people)
• the rental calendar update is automatic
• it is possible to contact customer service in the event of a problem
• users have access to a messaging system in order to communicate more easily
• payment terms are simplified
• you don’t have to write rental contracts. The platforms offer contracts written by experts.

Renting your motorhome has undeniable advantages. In addition to investing in a good of great value, this makes it possible to:

• Finance the purchase of your vehicle and pay the monthly loan payments
• Once the loan is repaid, make the purchase of the motorhome profitable
• Contribute to the costs of using and maintaining the vehicle
• Avoid letting your motorhome sleep when it is not in use
• Meet curious travellers and share your passion.

Final thoughts and tips

Vehicles are the most profitable objects to rent. In addition, beyond the value of the purchase, owning a motorhome entails many expenses: maintenance, insurance, cleaning, parking … etc. If you rent your motorhome when you are not using it, you can get extra money and thus lower costs.

Many people prefer to rent a motorhome before buying it. The community of caravan lovers is large and full of travellers who love to share their experiences. By renting your motorhome you can meet more members of the community and you can share a multitude of travel experiences with them.

Apart from having the necessary documents that verify the experience and good driving of the tenants, when renting these they acquire insurance that covers both of you. In this way, you will be calm knowing that your motorhome is in good hands.

Renting your motorhome while it is in disuse to other people who need it will not only provide you with extra financial remuneration but will also make you feel satisfied. It is proven that the concept of sharing a good with others makes us happier than that of owning. If we add the 4 previous reasons to the latter, what are you waiting for?

FAQ on Is RV rental a good investment?

Is a motorhome a good investment?

All in all, motorhomes are a good investment if you can budget for them properly. You can rent it out to cover your maintenance costs or even self-finance it when you are not using it and enjoy it for a long time for your family vacation.

Is renting an RV a good investment?

Renting an RV 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 RV?

Yes, you will have to pay tax if you rent out your RV. Rent money is still considered income, no matter your status. 

Is a caravan park profitable?

Managing a caravan park can be profitable. Considering how many caravans you have, the number of resistances, what extra amenities, etc., you could make up to $70000 per year. 

Can you earn a living renting an RV?

It is possible to earn a living renting an RV. Although the rental price really depends on the type of RV 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.

References

• Renting Out Your RV: The Pandemic Side Hustle – NerdWallet
• RV Rental Income Calculator
• How Much Money Can You Make Renting Out Your RV? A Realistic …