How To Successfully Rent Out Your RV
If you are entertaining the idea of renting out your RV, we strongly recommend that you read Part One of this blog series before proceeding.
In the first part, we explore the various ways you can make money by renting out your RV, offer a brief overview of some of the pros and cons of renting out your RV on your own, through an RV “sharing” website or by enrolling your motorhome with a professional RV rental dealer.
In this next chapter, we’ll show you how to successfully rent your RV out to other individuals.
Structure Your RV Rental Plan For Success
Renting out your RV is an excellent idea for motorhome owners looking to subsidize their monthly expenses through these rentals. In addition to the obvious financial enhancements of joining a professional RV rental fleet program, you may also benefit from unique tax benefits when renting out your RV.
In most RV rental situations, Section 172 of the Internal Revenue Service Code may be used to depreciate a recreational vehicle enrolled in an RV rental program. Additionally, RV owners may sometimes opt to set up an LLC for their RV rental endeavors.
If you are interested in renting out your RV, it is advisable to consult with your own personal tax professional to learn how to best structure your finances.
Assessing and Minimizing Risk When Renting Out Your RV
Whether you rent cars, condos or bicycles, there is always an element of risk. RV rentals are no different.
Vetting potential renters of your vehicle is the most important factor when renting out your motorhome.
Some of the questions you’ll need to address before you rent out your RV are:
- Is the potential renter trustworthy?
- Are they properly licensed with a good driving record?
- Do they really know how to operate a motorhome?
- Does the renter have sufficient insurance or funds to cover any losses or damage to your RV?
The success – or failure – of your RV rentals plans depends on finding the best customers.
Establishing RV Rental Policies and Procedures
Setting firm rental policies and operational procedures is something you will need to do before you pursue RV rentals.
Some of the policies and procedures you’ll need to establish include determining pickup and return times, factoring in prepaid fuel and other costs, deciding on the amount of the security deposits, and finalizing minimum insurance requirements.
You’ll also need to create a maintenance log and establish protocols for recording this information should a rental customer need RV repairs while out on the road. In the event of a complete vehicle breakdown that results in your rental customer becoming stranded, you will need to provide substitute travel immediately. As those arrangements can be quite costly, it definitely helps to have an in-case of emergency (ICE) plan firmly in place before your first rental customer hits the road.
Professional RV Rental Program vs. DIY RV Rentals
If you’ve decided to rent out your RV, it’s time to determine how you are going to go about it?
Of course everyone who rents out their RV wants to make as much money as possible – and carry the least amount of risk. While renting out recreational vehicles can be very lucrative, it can also be a risky proposition if you don’t know what you are doing. You’ll need to make sure that potential renters of your vehicle are who they say they are.
By joining a professional rental fleet program, like Allstar Coaches, much of that risk can be minimized if not eliminated altogether.
Allstar Coaches is home to the most successful, professional RV rental program in the United States. If you are looking to enroll your Class A motorhome in a successful rental program then we would love to talk with you. We’ll explain how the program works, what you can expect and see if it is a good fit for all.
To learn more about Allstar Coaches Owner’s Fleet Program, contact our team today!
