Renting Out Your RV for Extra Money? Beware These 4 Costs That Can Eat Into Your Profits
Renting out your RV is a clever way to make money from an asset that might otherwise sit idle in storage. However, don’t plan to pocket all the profits, because this side hustle also comes with costs you may overlook.
Here are four that can reduce what you actually earn.
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1. Maintenance and Repairs
RVshare travel expert Maddi Whitehead said renting out your RV means more frequent maintenance. She recommended that owners build the cost of routine maintenance and eventual repairs into their expected costs, rather than treating every rental dollar as profit.
RV owners often spend $1,500 to $5,000 each year on maintenance and repairs, per MobileRVService.com.
2. Lost Rental Time
If a repair doesn’t happen the same day it’s identified, it can lead to missed rental opportunities.
Stacy Kemp Ferrari, personal injury attorney at Kemp Law Group, has been renting her 32-foot Class C RV for seven years. A typical rental goes for $225/night, but the rate increases on weekends or during busy seasons.
She said that a cracked vent, bent awning arm or busted step may only cost a few hundred to repair, but if the parts aren't available, the RV won’t be able to be rented for days.
“If the RV won't get rented for four nights because certain parts are missing for the repair, I would lose $900, and it does not account yet [for] the cost of the repair,” she said.
3. Cleaning and Turnover
Whitehead said that each unit needs to be cleaned and reset between renters. She said that if the owner does it, they’re investing their time. However, she recommended that those who outsource cleaning consider adding that expense to their pricing. Otherwise, it will cut into their rental profits. To avoid this, consider charging renters a cleaning fee.
You can also outline additional fees in your rental contract, such as a pet-related cleaning fee and an excessive cleaning fee if the RV is returned dirtier than expected, per RVshare.
4. Delivery and Setup
Another cost that can eat into rental profits is delivery and setup. Whitehead said that delivery can make an RV much more appealing to renters, especially if they aren’t comfortable driving or towing one.
“But owners should account for their fuel, mileage and time when determining what to charge for delivery and setup,” she said.
RVshare recommends charging a base rate for delivery and setup up to a certain number of miles and then a mileage charge for any miles that exceed that number. For example, you could charge $250 for delivery and setup, with a limit of 75 miles, then charge $2 per mile for every mile over 75.
Tips for Making the Most Profit
To make the most money from your RV rentals, Whitehead advised looking beyond just the nightly rate. Instead, she said to consider pricing, availability, operating costs and the experience you provide the renter. She also said it’s important to understand when demand is highest in your market, and to make sure your RV is available then.
Listings are also important. Whitehead recommended making your listing as competitive as possible with great photography, accurate descriptions and clear amenities. Good reviews don’t hurt either.
“The goal isn’t simply to book as many nights as possible but to price appropriately, control costs, keep the RV in great condition and deliver an experience that makes renters want to leave a great review,” she said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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