My favorite comment from people is “Wow! Renting an RV must be a great source of passive income!” I love you, but no, just no. There is nothing passive about it. It is hard hard work. The largest RV dealer in the country doesn’t offer rentals, nor do many many others. Why? People wreck stuff, you have to deal with their shi* (both literally and figuratively), they’ll text you in the middle of the night because they can’t figure out how to turn on the push button light that you told them how to use 400 times and literally has a sticker that says “Push me” on it. Ugh, I digress. By no means am I here to talk you out of it, though. Here is a little more info-think of it as a tough love version intro to the business.
So, you bought an RV during COVID, you used it a time or two, but now little Tommy got on the traveling name your sport Varsity team, and there it sits. In the $200 a month gravel graveyard storage lot of depreciation and anguish. Sound familiar? But then, the sun comes out and the angels sing *RVShare* *Outdoorsy* I can make money off of my own RV, maybe even make it pay for itself! Yep, you can. Know this first.
Scenarios where I would advise not to rent your personal RV.
- It’s “Your Baby.” AKA The Sentimental Sally. You saved and saved and planned and shopped for months to find it. You ordered custom cabinets and mattresses and made cute little custom signs with your favorite sayings on them. You loathe the idea of someone else sleeping in it, eating in it, doing whatever people do…in it. Sorry Sally, go camp and enjoy the bejeepers out of that thing, but this business is not for you.
- Your calendar is more full than Grandpa Bob’s belly on Thanksgiving night. AKA The busy Betty. If you cannot camp because you do not have time, you cannot run an RV Rental business (and FYI renting out one RV is still a business-or you darn right should treat it like one). You have to be available for guest questions, you have to coordinate meeting times and block off time for walk-throughs and training, not to mention the cleaning. Laundry, scrubbing, dumping tanks, ripping the whole thing apart so your next guests don’t find so much as a piece of lint from a previous guest because the last thing you want is a 4 star review…whew, you get the idea. This is just scratching the surface. If you want to scale it and make a website and direct booking, there is a ton on the back end there too. Well Betty, sorry, not for you. Figure out a way to work camping back in to your schedule it, sell it and take a bath on it, or look in to consignment (again, more on that to come).
Scenarios where I say, “Go ahead and rent your RV and see how you like it!”
- You are pretty laid back, but also very organized and have some spare time. AKA “Hobby Rental Rob.” Well Rob, you have a newer RV, you have some time, you like people, well now what. The easiest way to get started is to first-get a good lawyer and a good accountant. Then start an LLC. Look in to insurance- both for the rig and liability to keep your behind covered. Yes, even if you have “just one,” do this. You have to treat it like a business or that behind we just talked about is going to be in big trouble. Drunken Danny rents your camper and falls out after stumbling to grab another? Guess who they’re coming after. You. Get an LLC and move it off your personal name…yesterday. Next, list it on the platforms. By platforms I mean companies that do this–for a living. RVShare, Outdoorsy, Good Sam, etc. How do those platforms make their living? You! They take 25% off the top. Yep. 25%. Yeah, it is a lot, but they help a new guy out a lot too. They sink a lot of money in to advertising and development. They literally get you leads and are the reason you make money at this point. So Rob, after that lecture, you still in? It’s a wild ride, I tell ya.
- CONSIGNMENT: I know, I kept you in suspense so long. What does this entail? Well, Consignor Carl, let’s chat about it. You have a newer RV in nice condition, but you don’t use it, pretty much at all, anymore. It’s worth way less than what you paid new-not your fault-cars and campers and depreciation are dumb. You want to rent it out to try to stay above water, but don’t have the time, location, desire, etc. to do so. Go out and find yourself an RV Rental business, like mine, that takes consignments (I have only taken 2 consignments-as I am picky about what I take, some companies are all consignments and that works for them). The process is pretty simple, you see if you and the consignment company are a match, make sure you have insurance that will let you rent your RV, sign some contracts, and off you go. What do consignors take for their cut? Most take half, 50%. Some charge for storage on top of that too. Still worth it to you? Congratulations, Carl, you sir, are now making a passive income on your RV.
Happy camping, my friends. Thanks for reading!
