Should You Rent Out Your RV?

Your RV will probably be one of the biggest financial investments you’ll ever make. And, like any investment, you want to make sure you get your money’s worth. However, many people with RVs find they can’t use their rigs as frequently as they would like and it can be frustrating to see your vehicle spend months in storage or parked in your driveway even when you’re paying insurance or a loan on it. One option for making some money on your RV when you can’t use it is to rent it out. However, this money-making strategy can come with some serious drawbacks. Read on for some cautionary tips on entrusting your vehicle to someone else.

1. Determine cost – Try to calculate what it is costing you on a monthly basis for your rig to remain out of commission. This can include insurance costs, storage fees, and taxes. Also, don’t forget to factor in depreciation. When a rig goes unused for long periods of time, the likelihood of mechanical difficulties increases. Bringing in enough in weekly or monthly RV rental fees to cover the costs of ownership will be difficult.

2. Consider pride of ownership – The single biggest reason that many people choose not to rent out their RVs is that they’re concerned the renters won’t take care of the rig. This is a legitimate concern because they simply don’t have the same stake and investment in the rig as you do. Even if you carefully vet renters, require a security deposit, and have a thorough rental agreement, you’ll be taking a considerable gamble by assuming that a renter won’t be neglectful of your property.

3. Talk to your insurance company – Finding an insurance policy that will keep your rig covered when it is being rented out can be difficult. If a renter is driving the rig and incurs damage or gets in an accident, you could potentially have a huge amount of liability on your hands. There are companies that offer insurance “binders” to renters that will cover them for the short period of rental, but they aren’t that common; if you require a binder from your renter, you may have a harder time finding takers.

4. Lack of education and experience – As any RV owner knows, there are quite a few things to keep in mind. From the clearance of the vehicle to its dimensions for camping sites to its towing capacity, knowing how to properly maneuver and park the motorhome is essential. When you rent out your vehicle, you are entrusting it to someone who simply may not have the experience or expertise necessary for that kind of vehicle.

Have any questions about renting out your RV? Be sure to contact us!