Why not rent out your Motorhome, Caravan, or other assets?
entered the sharing economy – many people are using their own assets to raise
funds and why not?
Airbnb is a prime example with people renting out their homes. We have seen car sharing, storage space renting, and office space letting. We already have template agreements on our site covering Holiday Lets, Office Space, Caravan Rental, and Motorhome Rental.
The question is then – if you have any assets capable of being rented out, will you make money? Let us take the Motorhome as an example but the principle equally applies to other assets as described above.
Although campervans and motorhomes are an expensive investment, both in terms of the initial cost and maintenance, most owners do not use them all-year-round. That is why it makes sense to hire them out to other drivers when they are idle.
It’s a great idea and can help to cover your costs while allowing others, who maybe can’t afford to or do not wish to buy one of their own, the chance to experience the excitement and freedom that a motorhome holiday can provide.
After all - After a few rentals, you might wonder why you had not previously considered this way of earning cash.
Can You Make Money Renting Out A Motorhome?
If you take prudent steps and protect yourself properly with documentation and insurance, then why not?
It probably helps if you are an experienced owner and have learnt the pitfalls of the motorhome world. If experienced, you are more likely to know important factors e.g. how much to charge and what sort of refundable deposit is required.
It is probably best to treat any income as a nice bonus rather than a guaranteed income stream as demand may of course be erratic and certainly seasonal.
Clearly any income would be nice to set against those annual running costs of owning a motorhome in the first place.
A motorhome which is regularly rented out will depreciate (the worth reduces) as its mileage increases. However the mathematics probably work out - if you were to rent the motorhome out there for four times a year, earning maybe £1500 each time the income is no doubt better than the depreciation loss incurred (which would be probably in the low hundreds of pounds).
You might conclude that the income overcomes that concern and the asset is wasted being parked on your drive all year round.
Another concern for owners is that the asset will not be under your control for the hire period. You may not know the person hiring it or what the level of driving skill is. So, you clearly need a full insurance package in place to cover accidents/breakages etc. Owners can find insurance which covers the rental model and not only is this a legal requirement in respect of motorised vehicles it is an essential part of business planning. You can of course require that drivers be of a certain age or need to be endorsement free for a period of time. You can dictate where the vehicle is permitted to be taken e.g. not outside of the UK and Europe?
Soon all this may come as naturally as renting a holiday cottage or taking a rental car while on holiday.
Matters to Watch
We have mentioned insurance. There may be other areas of regulation which apply to you renting out your motorhome.
It would be wise to research the gas and electricity safety requirements around records, testing, and certification. There are different requirements for owner drivers and renters. Do you have smoke alarms, fire blankets, carbon monoxide testing, fire extinguishers? There may be other Health & Safety requirements such as a written notice advising where everything is kept.
Furthermore, be aware of the weight restrictions – you will know that every vehicle has a legal permissible maximum weight limit, and that if a vehicle is driven when over this weight limit, it can be taken off the road and the driver fined. Be aware what the renter might be doing with it (number of people, cycles, extra water etc), or what you might do with it to prepare it for rental by way of conversion. Remember that 1 litre of water weighs 1 kilogram!
If the vehicle is being taken abroad it is important to be aware of foreign laws and regulations to ensure that it complies with legal and insurance requirements. You also need to make sure your insurance is still valid outside the UK.
Do Your Research
Why not Google some rental listing sites to get an idea as to rental rates, comparing makes and model, pricing, times of year etc.
Why not speak to some sites? They may be able to give you useful information on seasonal levels of demand, pricing, and the best places to advertise.
Marketing Your Motorhome
When a potential guest is browsing lots of similar rental options, it is without doubt the little things that can make all the difference. It certainly is worth taking time to produce some good quality photographs to accompany your advert. Clean bodywork and clean surfaces on a nice sunny day can help your photos to make the difference.
It would be nice to show some 5-star reviews in time from previous renters so why not contact them after their hire period?
Are you Going to Go For It?
25th August 2020
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