RV Rental Market info

40 Replies

@Adam Rowe I think you should do both. Though do your research as I believe older models are not insured through the rental platforms. I think they would both do well. I am not sure what is rented out to Burning Man. I have stayed away from it as I hear the dust is bad and my RV is still new. I plan to consider it as my RV gets older. I would search for Burning Man images on Google to view the style of RVs that are out there. My understanding is that it is difficult to find owners that are will to rent out their RVs to Burning Man....so I am sure you can rent any of them out. 

@Mark Wurtemberg

Hello, thanks for sharing your experience.

I have a house in Shelton, WA with a big available land that could be used for RV rental. I’m planning to buy an used RV and rent it on the available land as long term rental. I could build a big shed instead of the RV but that option will be way more expensive. Any recommendations. Thanks

@Marlon P.

Sounds great. I would go the RV route. I too would like to rent out on my property. Though we do not have much land, and my wife is not a fan as we have small children. Not a fan of strangers being around. However, if you have a large enough property, I would do it. I have rented a spot from hipcamp.com. I like that concept. I also want to look into harvesthosts.com.

@Mark Wurtemberg

Sounds like it is working out well for you. My big worry with starting this business is the competition. When I go on RVShare and Outdoorsy and look up the available units for my area (Richmond, VA) there are a TON of units of all classes available for rent. I would imagine it is the same for your area in California? How much demand do you get for yours? I don't see this working if it is rented less than 15 out of 30 days per month...

Thoughts?

@Patrick Sears

I think it has to do with how quickly you reply to renters and how personable you are with them. I tend to be an open book. So here are my bookings for this year thus far. 

2/8/20-2/10/2020

5/22/20-5/27/2020

6/1/2020-6/7/2020

6/9/2020-6/11/2020

6/14/2020-6/20/2020

7/5/2020-7/14/2020

7/17/2020-7/19/2020

7/24/2020-8/2/2020 

8/7/2020-8/10/2020

8/12/2020-8/31/2020

9/4/2020-9/7/2020 

9/9/2020-9/12/2020 

9/14/2020-9/16/2020 

9/18/2020-9/20/2020 

9/23/2020-9/30/2020 

10/2/2020-10/4/2020 

11/6/2020-11/8/2020

Hey Folks...found this thread. We are looking to branch out our STR into RVs. I think it would make the most sense to park the RV near a major interstate route so folks could easily pick up the RV. We would hire someone locally to do the pre rental walk through and cleaning. The margins seem to be pretty lucrative and we would have the benefit of being able to use it personally on occasion. For those of you doing this now, where do you base your RV from? How are you handling turn overs? What do you set aside monthly for repairs and maintenance?

Thanks in advance-

Karen

@Karen Chenaille

I am in Los Angeles. I park at my house. I use outdoorsy.com and rvshare.com to find customers. I do no marketing. I just provide a great experience and receive great reviews. I do all the checking outs and ins myself, including a walk-through of the RV. I pay me daughter to clean the inside. My son's and I wash the outside. I keep about $2000 in savings for repairs and maintenance. This has been a great way to make an income. I am considering a second and maybe a third RV. -Mark

@mark wurtemberg

I've tried running the numbers if I bought a new Class A for say ~$150k, and I can't get past the amount of depreciation you would suffer on your vehicle. You're basically paying off an asset that will have virtually no residual value after 10 years (unlike real estate). Have you done IRR calculations on this business? Everyone always loves to talk about the great cash flow of asset-based businesses (like trucking) but they always conveniently forget about the depreciation and CAPEX, which often leads to a big fat nothing on exit.

On the surface this business gets me excited--I hope you can point out where I am wrong!

@Patrick Sears  

I agree with you. It is a depreciating asset. And no, I have not run all the numbers. There are some big CapExs. Those expenses are within my numbers. Currently I have just the one RV. My family and I love using it. My first goal with the purchase was for it to pay for itself. And that it is doing. I would be happy if in the end this business has purchased an RV for me and my family. I believe at this point if I sold it I would still have a profit. Yet you are correct. The numbers would look very different. 

If I was going to expand this business I will have to look at things differently. I know of a renter with a fleet of camper vans that does this strategy. Purchases van used, about $20,000. Converts to camper van, about $20.000. Rents it out for a year, realizes all the rental income. Sells one year later with still low-ish miles for $40,000 - $50,000. Selling the camper van for more than he has in the van. I like that model. In and out within a year so the resale value is still good. 

I hope this helps. -Mark

@Mark Wurtemberg We bought a Class A diesel pusher. Low miles. Just had photos taken and plan to list it by 1 Nov. Not exactly the best time of year but I need to get it listed so I can claim bonus depreciation on my taxes.

I have been doing some serious research into the business model with thoughts of scaling. On my list as a major goal in 2021. For now we need to figure out how to use it ourselves! You tube is a great teacher. :-)

Karen, what are your thoughts on my question/concerns above? Are you not concerned about all of your rental income going towards paying off an asset that will be declining in value?