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Author Topic: Putting my RV into Rental Fleet  (Read 2412 times)

kevperro

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Putting my RV into Rental Fleet
« on: October 25, 2015, 12:08:58 PM »
I'm new here and new as an RVer.    I have rented a few units over the last couple years and I used to drive a tractor trailer so I'm not a newbie at driving with trailers and weights.   I've scaled my tow vehicle wet, all passengers and axle weights.   I understand all my limits and I'm within all allowable parameters once I have a load leveling/sway control system.    I only have 1000lbs of extra cargo capacity (after accounting for water, fuel, propane, batteries) but I'm not full-timing.   We limit the kids to one backpack of stuff on every vacation.   

We are in the process of buying a Keystone 272BHSWE (bunk-house) which I'm planning on putting into a rental fleet.   I won't use an RV enough to justify it sitting in my driveway (or storage) so I ran the numbers on putting it into the rental fleet.   I'd keep it in there for about 3-years and then flip it or just park it in my driveway.   I expect rental service will be hard on it but I'd rather have a well used trailer for less financial pain than a pristine one that cost me an arm and a leg.   

Has anyone here done something like this?    Any words of wisdom would be welcome before I commit.

« Last Edit: October 25, 2015, 12:16:28 PM by kevperro »

SuperMike

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Re: Putting my RV into Rental Fleet
« Reply #1 on: October 25, 2015, 01:30:59 PM »
Yes, don't do it. I doubt it would last three years !!!!! I have rented RV's in the States and I was not impressed at the way they had been presented to me, and therefore what people had done to them to get them in that state.   :o
« Last Edit: October 25, 2015, 01:35:01 PM by SuperMike »
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legrandnormand

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Re: Putting my RV into Rental Fleet
« Reply #2 on: October 25, 2015, 04:26:16 PM »
If you cannot afford to pay for a new larger trailer, just wait till you can, you won't loose any money doing so.
Normand
Trois-Rivieres, QC, Canada
2010 Gulfstream Independance, model 8367
2009 Smart Cabriolet

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #3 on: October 25, 2015, 08:24:25 PM »
I have no problems affording it.   I'm just looking to minimize my investment and maximize my utilization of an asset.   The RV itself has no value to me other than the 2-3 times a year when I'll use it for family time.     I fully expect it to be well used and to have to spend significantly more than typical to maintain it.       That goes with the territory of renting it but I don't really care if it is well used as long as someone else is paying for that utilization. 

I guess what I'm looking for is some input from someone who has done what I'm proposing.   I understand different people buy an RV for different things.   Just like many people wouldn't rent their house I expect many wouldn't dream of renting their RV.     That isn't me.... I'm perfectly willing to accept the excessive use it will receive. 


legrandnormand

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Re: Putting my RV into Rental Fleet
« Reply #4 on: October 25, 2015, 08:39:49 PM »
The question...  why bother to buy one ? It is not for sure a great investment buying a rv. If you call that an asset, to me it is a PITA !
Why not just rent one when you need it !
« Last Edit: October 25, 2015, 08:43:06 PM by legrandnormand »
Normand
Trois-Rivieres, QC, Canada
2010 Gulfstream Independance, model 8367
2009 Smart Cabriolet

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #5 on: October 25, 2015, 09:23:05 PM »
The question...  why bother to buy one ? It is not for sure a great investment buying a rv. If you call that an asset, to me it is a PITA !
Why not just rent one when you need it !

That is exactly how I've always felt.  ;-)   

DearMissMermaid

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Re: Putting my RV into Rental Fleet
« Reply #6 on: October 25, 2015, 10:00:45 PM »
I have never done the rental fleet with RV's but it does make sense if you can rent it out and then still use it a few times a year.

I lived in the Caribbean where the bareboat companies are all stocked with privately owned boats that are leased back to the company under various plans. The owner still uses the boat for his own use on his own time, but rest of the time it's in the rental fleet.

It's a way of converting a 2nd home into a business.

If the rental company is any good, they should take care of the baby and collect for excessive damages done by the occasional bad renters.

Good luck and I hope it all works out for you.
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Joezeppy

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Re: Putting my RV into Rental Fleet
« Reply #7 on: October 26, 2015, 08:48:15 AM »
I guess what I'm looking for is some input from someone who has done what I'm proposing.


Kevperrro, I don't believe anyone here has rented their RV so you probably will not get any first hand input. You will, however, get very honest feedback on why various folks (including me) would never do it. One thing that has not been mentioned is insurance. You are not going to be able to just put this trailer on your personal automobile policy. If your insurance company knows you are renting it, they will most likely not want to insure it. If they don't know and later find out, it may be grounds for denial of a claim. Just something to think about. Maybe the rental agency has this all figured out but I felt it was worth mentioning.
Joe & Kim
Upstate NY - Kuyahoora Valley
2010 GMC Sierra 2500HD - 6.0L
2017 Keystone Hideout 295BHS
Andersen Ultimate Aluminum 5th wheel hitch

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #8 on: October 26, 2015, 09:07:05 AM »

Kevperrro, I don't believe anyone here has rented their RV so you probably will not get any first hand input. You will, however, get very honest feedback on why various folks (including me) would never do it. One thing that has not been mentioned is insurance. You are not going to be able to just put this trailer on your personal automobile policy. If your insurance company knows you are renting it, they will most likely not want to insure it. If they don't know and later find out, it may be grounds for denial of a claim. Just something to think about. Maybe the rental agency has this all figured out but I felt it was worth mentioning.

Thanks for the input.    The program does include commercial insurance which is split between us and them.   It has a $500 deductible that in the event it is needed we split 50/50 between the agency and me if they cannot squeeze it from the customer (who puts a $500 damage deposit down).    I agree that I'm probably not going to find someone else who has paved the path for me.    The comparison with boats is valid as we have the same sort of programs (I live in Washington) with yacht owners who put them into charter service.    RVs are not built anywhere near as sturdy as most boats.    I imagine rental service will be extremely hard on it.   

« Last Edit: October 26, 2015, 09:08:39 AM by kevperro »

scottydl

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Re: Putting my RV into Rental Fleet
« Reply #9 on: October 26, 2015, 09:30:45 AM »
One thing we (RV owners) like about our rigs (especially over frequent hotel/motel stays) is that we always know who sat on the toilet, and what happened in the bed.  Putting yours out there as a rental would put a lot of unknowns in those two areas!

That isn't me.... I'm perfectly willing to accept the excessive use it will receive. 

I don't quite understand the purpose of buying a new RV (that will depreciate like MAD) but rarely even using it... while still being willing to take it back in potentially-abused condition and pay more for upkeep/repairs/maintenance as a result.  Then dealing with the hassles of rental agreements with the agency, insurance, transport, etc.  Not to mention it will lose at least 40% of its market/resale value in the next 3 years.

Whatever money you spend (net) out of all that, would likely buy you a nice, used single-owner trailer in cash that you COULD keep in your driveway year-round and not mess with all the other riff-raff.  ;)  It just takes a fair amount of researching and shopping from local private sellers (i.e. Craigslist) to find the best deal, but can certainly be done.  The floorplan you posted above is nothing too unique... those bunkhouse models have been around for close to a decade.  I just finished shopping for them myself, before recently buying my '08 Forest River Wildwood.
Scott, wife, 3 boys... and the dog
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kevperro

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Re: Putting my RV into Rental Fleet
« Reply #10 on: October 26, 2015, 07:51:46 PM »
One thing we (RV owners) like about our rigs (especially over frequent hotel/motel stays) is that we always know who sat on the toilet, and what happened in the bed.  Putting yours out there as a rental would put a lot of unknowns in those two areas!

I don't quite understand the purpose of buying a new RV (that will depreciate like MAD) but rarely even using it... while still being willing to take it back in potentially-abused condition and pay more for upkeep/repairs/maintenance as a result.  Then dealing with the hassles of rental agreements with the agency, insurance, transport, etc.  Not to mention it will lose at least 40% of its market/resale value in the next 3 years.

Whatever money you spend (net) out of all that, would likely buy you a nice, used single-owner trailer in cash that you COULD keep in your driveway year-round and not mess with all the other riff-raff.  ;)  It just takes a fair amount of researching and shopping from local private sellers (i.e. Craigslist) to find the best deal, but can certainly be done.  The floorplan you posted above is nothing too unique... those bunkhouse models have been around for close to a decade.  I just finished shopping for them myself, before recently buying my '08 Forest River Wildwood.

Yea... I guess it was just a bad idea.     

DearMissMermaid

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Re: Putting my RV into Rental Fleet
« Reply #11 on: October 26, 2015, 08:21:34 PM »
I don't think it's a bad idea at all, if you know what you are getting into and find the positives outweigh the negatives for your own personal situation.

But one thing to remember when you put an RV or boat into a rental fleet, is that the best rentals might conflict with the times you want to use it too. If that is the case, then it might be a big problem.

For instance in the Caribbean, the Christmas holidays are always sold out, so if you wanted to use your boat during that high time, the yacht companies are going to take a dim view, it robs them of their best chance of rentals. Some have it specifically in the contract when the owners can use their yachts without paying a "penalty" fee such as pulling it out of the fleet during their busiest time.

I would read the super fine print of the contracts with the RV company and ask loads of questions. if the contract is incomprehensible, then you definitely need attorney advice to make sure you understand your responsibilities and theirs.

Good luck!  8)
http://DearMissMermaid.Com

Living, working. playing  in a Class C, 1994 Tioga Montara, 28'

Pack half the stuff and twice the cash.
http://dearmissmermaid.blogspot.com/

Larry N.

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Re: Putting my RV into Rental Fleet
« Reply #12 on: October 26, 2015, 08:58:24 PM »
Excellent advice, MissMermaid. For most others, it's odd, but I see this time and again-- someone posts about something that many folks think is a bad idea (at least for them), and that poster acknowledges the bad features, but says he still wants to, but people still try to dissuade him instead of helping. Weird...
Larry and Mary Ann N.
2016 Newmar Ventana 3709 -ISB6.7 XT 360HP
2015 Wrangler Sahara Unlimited toad
Formerly: Trailmanor 2720SL
  de N8GGG

BigLarry

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Re: Putting my RV into Rental Fleet
« Reply #13 on: October 26, 2015, 09:15:27 PM »
Please keep us informed so we can see how it works out.
Larry and Betty
Bryan, Texas
2017 GMC Sierra 2500HD 4x4 Diesel
2016 Cougar 28RLS

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #14 on: October 26, 2015, 11:01:49 PM »
Hey... it is no troubles.   I understand people have different opinions on how to enjoy an RV.    The idea of someone else's kids peeing in the bunks, puking on the dianette and unspeakable things going on in that little bathroom are more than most can stomach.     

I'll try not to dwell on the body fluids and I'm certainly not investing in one of those black lights.   

Frizlefrak

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Re: Putting my RV into Rental Fleet
« Reply #15 on: October 27, 2015, 01:06:59 AM »
I managed a car rental agency for one of the big boys for nearly 20 years.  I have one piece of advice to you about renting out your RV.

DON'T


The stories I could tell you would fill a 20 volume compendium of the bizarre.  I can only imagine what these "customers" would do to an RV. 
2014 Ram 2500 Cummins
2012 Palomino 30' TT

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #16 on: October 01, 2017, 05:37:18 PM »
I wanted to update this thread since I have a couple years of history now.   

I've had my travel trailer in a rental fleet since new in fall of 2015.  I've averaged around $6000/year in revenue from it during that time, had it out for 4-5 personal trips with the kids.     I've paid it off so right now the rental income is just going in my pocket but I've not yet had enough income from it to pay me back for the cost of the trailer.    I have more than enough equity from the trailer to break-even but I'm keeping it in the rental fleet for one more year.   

The trailer has had some rental damage.   It took a hit in the front driver side roof which is being repaired now.    There are other obvious signs of wear but nothing that is functionally wrong with it.    I plan on selling it next year and overall I've been extremely happy with the experience.   

Just thought I'd update for any other people considering the same experience.   

muskoka guy

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Re: Putting my RV into Rental Fleet
« Reply #17 on: October 02, 2017, 05:09:15 PM »
Makes you wonder, if you have a mortgage on the trailer what the major lien holder would think of it being rented out.

kevperro

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Re: Putting my RV into Rental Fleet
« Reply #18 on: October 02, 2017, 05:12:18 PM »
Makes you wonder, if you have a mortgage on the trailer what the major lien holder would think of it being rented out.

I bought it with a loan not secured by the title.   If a lender had the title I'm not sure what their legal recourse could be unless they specified in the loan documents that it couldn't be used for commercial use.   

I paid it off last year so I own it free and clear so there are no complicating issues.   

 

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