Renting out my RV when not in use

[Gailete]

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.

If you are renting out your RV as a business to others, I would think that the per mileage amount (that the renters drive over the first 100 miles) should be applicable as you may find yourself filing at tax times as if you were a landlord. You might want to check with a tax person on this issue of renting it out.

[97guns]

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

I won't fight it if it works, I'm amazed #1 only went 68 miles in 3 days of use. If I was planning a camping trip 30 miles away I sure wouldn't spend $800 for the lodging on it.

[moneybags]

Depending on your state, you may be liable for sales tax on the rental income. Check out your laws.

[Gailete]

If I was planning a camping trip 30 miles away I sure wouldn't spend $800 for the lodging on it.

Perhaps they had company from out of town coming and wanted to provide a place for them right at home? Such as for a wedding, etc.

[disneysteve]

Perhaps they had company from out of town coming and wanted to provide a place for them right at home? Such as for a wedding, etc.

That's a neat idea. Expensive, but neat.

[angelicac]

bigdaddybus

Do you let anyone rent or do you have some kind of restrictions!?

I looked at pages like cruiseamerica.com

It then hit me, maybe you're better off letting people +55 be your customers?
It's not that older people are better people... but they tend to take life slightly slower.
Hopefully they would take good care of your RV... I don't know. Just a thought!

[disneysteve]

maybe you're better off letting people +55 be your customers?
It's not that older people are better people... but they tend to take life slightly slower.
Hopefully they would take good care of your RV... I don't know. Just a thought!

So your advice is illegal age discrimination?

[bigdaddybus]

Depending on your state, you may be liable for sales tax on the rental income. Check out your laws.

yes, 6.75%. but I will be verifying that at tax time with an accountant to be certain.

[bigdaddybus]

bigdaddybus

Do you let anyone rent or do you have some kind of restrictions!?

I looked at pages like cruiseamerica.com

It then hit me, maybe you're better off letting people +55 be your customers?
It's not that older people are better people... but they tend to take life slightly slower.
Hopefully they would take good care of your RV... I don't know. Just a thought!

25 or older. Right now about 40% of people who express interest end up renting. I have had a few people trying to haggle on price, and I am fine with letting them find cheaper options elsewhere.

outdoorsy and rvshare are the popular listing sites in my area for renting personal RVs.

[bigdaddybus]

I won't fight it if it works, I'm amazed #1 only went 68 miles in 3 days of use. If I was planning a camping trip 30 miles away I sure wouldn't spend $800 for the lodging on it.

What I have seen from reservations/users so far is:
1. People are willing to drive 150-500 miles in their cars packed full of stuff to my location. Put their stuff in the RV and leave their car at my location. Return the RV, put their stuff back to their car, do an inspection with me, and go home.
2. Over half are experienced RV renters. Feedback is the price is similar to established companies that rent RVs, but my location (over 100 miles to the nearest RV rental store) and upgraded features of my RV we enough to sway people from traditional RV rental stores.

[97guns]

What I have seen from reservations/users so far is:
1. People are willing to drive 150-500 miles in their cars packed full of stuff to my location. Put their stuff in the RV and leave their car at my location. Return the RV, put their stuff back to their car, do an inspection with me, and go home.
2. Over half are experienced RV renters. Feedback is the price is similar to established companies that rent RVs, but my location (over 100 miles to the nearest RV rental store) and upgraded features of my RV we enough to sway people from traditional RV rental stores.

That makes sense, my main concern with renting it out was piling on big miles

[moneybags]

yes, 6.75%. but I will be verifying that at tax time with an accountant to be certain.

Don't wait until tax time, find out now. I live in Illinois. When you rent your RV out, you have to file and pay your sales tax monthly (maybe annually if the state deems that). You need to register with the state specifically for sales tax; it is not part of your income tax return.

[TexasHusker]

Glad it's working out! Nothing ventured, nothing gained!

You might want to check with your insurance agent to see if you have proper coverage on the RV if you are renting it out.

This is going to be considered a vehicle rental business and you want to make certain that it is insured as such.

The minefields are many if the RV is only insured as a personal-use vehicle and there is an incident - God forbid a serious injury, fatality, etc.

You want to make certain that all potential liabilities that you face are insured, at least as much as possible.

This is not dissimilar to our vacation homes. Standard homeowners/landlord insurance is inadequate, because these are actually considered hotels. So we had to buy commercial policies to better address potential risks - guest issues, fire, income replacement, liability, etc.

[disneysteve]

This is going to be considered a vehicle rental business and you want to make certain that it is insured as such.

This is not dissimilar to our vacation homes.

I also wonder if you need any type of license or permit for the business. I know that in many places, vacation homes need to be licensed as such. Is the same true of vehicle rental businesses?

As for sales tax, you almost certainly need a business license for that. I know that I do for my collectibles business and I need to file quarterly returns even if I have zero sales that quarter. I would definitely not wait until March or April to look into those questions. You could wind up in some trouble for not doing things by the book.

[bigdaddybus]

Glad it's working out! Nothing ventured, nothing gained!

You might want to check with your insurance agent to see if you have proper coverage on the RV if you are renting it out.

This is going to be considered a vehicle rental business and you want to make certain that it is insured as such.

The minefields are many if the RV is only insured as a personal-use vehicle and there is an incident - God forbid a serious injury, fatality, etc.

You want to make certain that all potential liabilities that you face are insured, at least as much as possible.

This is not dissimilar to our vacation homes. Standard homeowners/landlord insurance is inadequate, because these are actually considered hotels. So we had to buy commercial policies to better address potential risks - guest issues, fire, income replacement, liability, etc.

Yes, I have additional coverage through my agent. The renter contacts the agent and is underwritten in for the dates of use.