Renting out my RV when not in use

[bigdaddybus]

My wife and I just started renting out our RV to reduce the monthly cost of ownership. I am going to share our experiences in this thread.

Here is an overview of how we are going about renting our RV and associated costs.
1. Our RV payment is $1149.42 per month.
2. Renting our RV earns us $206.25 per day for rentals of 3-6 days (I require a 3 day minimum). $176.78 per day if rented for a week.

Insurance
The RV listing service offers insurance (paid for by the renter for at a cost of around $90 a day. My insurance agent has agreed to underwrite insurance for the renter at a cost around 1/5 of that.

listing agent
The listing agent advertises, handles secured payment transfers, provides online booking software, and provides roadside assistance for the renter. There fee is 25% of the rental fee. (20% if you have 2 RVs, 15% if you have 3 or more)

I created our listing on 4/4, so far I have one paid reservation for 3 days in late July (which after fees we earn $676.89) and numerous requests for additional info and quotes.

[97guns]

I'm not sure, when I rent a vehicle I tend to be pretty hard on them, with an RV i would think a lot of miles would be racked up quickly and with an $1100 payment I'm assuming that is a pretty good sized investment that is a depreciating asset, not an appreciating one, with all those variables it would not make sense for me to rent it out to recoup money, I would have only made this kind of purchase with reserve money with no thought of recouping any of it, in conclusion I would have probably opted to be a renter than to be an owner as I would have to do a lot of RV'ing to make it worth while the investment. $100k can buy a lot of hotel rooms, airfare or RV rental

[bjl584]

If I had to rent out my RV to be able to make it more affordable, then I probably wouldn't own an RV in the first place.

As previously pointed out, you might be able to alleviate your payments in the short term, but as a long term prospect you're probably going to lose out or break even at best. Let us know how it turns out for you.

[bigdaddybus]

I'm not sure, when I rent a vehicle I tend to be pretty hard on them, with an RV i would think a lot of miles would be racked up quickly and with an $1100 payment I'm assuming that is a pretty good sized investment that is a depreciating asset, not an appreciating one, with all those variables it would not make sense for me to rent it out to recoup money, I would have only made this kind of purchase with reserve money with no thought of recouping any of it, in conclusion I would have probably opted to be a renter than to be an owner as I would have to do a lot of RV'ing to make it worth while the investment. $100k can buy a lot of hotel rooms, airfare or RV rental

The RV rental includes 100 miles per day. Additional mileage is $.50 a mile.

Definitely a depreciating asset, but one thing I have found in researching RV's is that a 3-5 year old RV with 5,000 miles on it or one with 30,000 miles on it are all similarly priced. Mileage doesn't impact value much unless you get high mileage which really isn't common in RV's for sale under 12-15 years old.

Now if the RV starts showing wear and tear that's another thing, but we have a $1500 security deposit for to addressing damage.

I understand where you are coming from, I just see it a bit different. I don't consider an RV the same as renting a car, or choosing between an RV and a hotel room. RV's suck gas like a hoover, they offer a family a different type of experience vs. being just a mode of transportation or a place to sleep. Yes there are many, many cheaper alternatives. Any RV, Boat, Airplane, or exotic automobile owner knows this.

[bigdaddybus]

If I had to rent out my RV to be able to make it more affordable, then I probably wouldn't own an RV in the first place.

As previously pointed out, you might be able to alleviate your payments in the short term, but as a long term prospect you're probably going to lose out or break even at best. Let us know how it turns out for you.

We don't need to rent our RV. (RV costs are 6% of our monthly income, and we have no car payments, CC, etc.)

Currently my wife and I are on the same page. Our ideal scenario is renting the RV between 5-6 days a month so we basically are only left with the cost of upkeep.

I guess we could turn a profit, but we are intentionally priced at the higher end of what is available in our area, to pursue renters looking for newer RVs with more features than most available rentals.

[Braje]

If you are renting for 206.25 per day (206.25*3=618.75) how are you netting 676.89 for 3 days?

[bigdaddybus]

If you are renting for 206.25 per day (206.25*3=618.75) how are you netting 676.89 for 3 days?

The $676.89 includes the 6.75% tax rate collected to pay tax man

[TexasHusker]

My dad did this for a side business and lost his shirt. More details if you need them.

Short version is the RV gets torn up and you can't get the $$$ out of the renter.

[greenskeeper]

The RV rental includes 100 miles per day. Additional mileage is $.50 a mile.

IRS is 53.5 cents per mile, to me it looks like you are losing money just on wear and tear alone.

[bigdaddybus]

IRS is 53.5 cents per mile, to me it looks like you are losing money just on wear and tear alone.

From my research you can only deduct mileage if the RV is solely used for business, which mine is used primarily for my families recreation, so deducting mileage isnt a legal option anyway.

[LivingAlmostLarge]

is it just local people who rent your rv? Where do you list it?

[bigdaddybus]

is it just local people who rent your rv? Where do you list it?

outdoorsy and rvshare are the popular listing sites in my area.

yes, mostly local unless the renter wants to pay for more than the 100 miles per day that is included in each days rental.

[greenskeeper]

From my research you can only deduct mileage if the RV is solely used for business, which mine is used primarily for my families recreation, so deducting mileage isnt a legal option anyway.

I wasn't talking about claiming a deduction, rather the cost of wear and tear on the RV per mile as an expense.

[bigdaddybus]

rental #1 complete:
- rented for 3 days, 68 miles put on the RV and 1 hour of generator use (well below the 300 miles and 15 hours included in the rental).
- No issues or damage. The renter would like to reserve for next year for the same weekend. My wife was very impressed by how clean the RV was returned.
- received payment of $743.05 to put towards the RV loan principal


Rental #2 left last night (will update with actual when completed)
- renting for 7 days
- estimated payment of $1998.88 (based on planned mileage) to put towards loan principal

[Fishindude77]

I'm sure this can work, because places that sell campers often rent RV's. the trick is to know what the pitfalls are, what your true cost of ownership is, and to charge enough to cover everything plus make a profit.