Some Things to Consider If You’re Thinking of Renting Out Your Motorhome to Earn Some Money.
Not long ago, we would have found it strange if anyone had suggested we rent out our homes or vehicles.
However, with the recent popularity of companies like Airbnb, we’ve got used to people using their assets to generate income.
If you own or are thinking of buying a motorhome, you might be wondering if renting it out would be a good way to pull in some extra cash.
This guide covers some of the things to consider if you're thinking about hiring out your current vehicle or looking for a way to offset the price of purchasing a new one.
The benefits of renting out your motorhome are numerous. Here are just a few of the reasons you might want to try your hand at the sharing economy by hiring out your motorhome.
The number of people interested in renting a motorhome is growing all the time and lots of owners are taking advantage of that.
If you love your motorhome but don’t like the fact it just sits on your drive for most of the year, it might be worth considering.
After all, just think what you could do with a few thousand pounds of extra income!
Because motorhomes are a great way to get away from the stresses of everyday life, there is an increasing demand for motorhome rental in the UK.
With staycations becoming more popular every year, demand currently far exceeds supply and that’s not likely to change anytime soon.
The cost of a state-of-the-art motorhome can be difficult to justify if you only use it a handful of times a year.
But if you can rent out your motorhome for several hundreds of pounds a week, you'll quickly recoup the cost of your original investment and more.
The more features your motorhome has and the better maintained it is, the more you can charge and the greater demand there will be for it.
A motorhome is a major financial investment. Most motorhomes will depreciate in value over time so renting them out can help to offset the purchase cost.
Offset the Costs of Upkeep and Motorhome Insurance
It costs money to insure a motorhome and keep it in good condition. Renting it out could cover the costs of insurance, upkeep, and any repairs.
Speaking of insurance, you will need to make sure that your insurance policy covers you renting it out and think about adding some additional cover for any special features or personal possessions.
Getting involved in the motorhome rental economy is a great way to meet new friends who share your interests in motorhomes and travelling, while also making money from your investment.
There’s the added benefit that lots of people who rent your motorhome will be looking for an alternative to foreign holidays who will enjoy being involved with an environmentally friendly community.
The financial benefits of renting out your motorhome are attractive.
However, several factors will affect how much money you can earn:
Any revenue you earn from renting out your motorhome needs to be reported as taxable income, but all of your operating expenditures, repairs and any interest on the vehicle's loan are tax-deductible.
You can also claim for expenses such as bedding, crockery, and even your own travels to motorhome exhibitions.
The reality is unless you are making significant profits you’re unlikely to pay any taxes on your motorhome rental income. Always check with your accountant to be sure.
If you plan to hire out your motorhome, it's vital to contact your insurance company to make sure that you’re fully covered.
Even if you're just renting to a friend or family member on an informal basis, you should still contact your insurance company to let them know.
It is possible to rent out your motorhome yourself, but there are lots of professional companies that will handle the process on your behalf for a small fee.
They'll help you to find renters but, in most cases, you'll still be responsible for cleaning and preparing the vehicle before renting it out.
When you use one of these companies, you can specify how much you’d like to charge and let them know whether there are any stipulations.
So long as you’re happy with the idea, renting out your motorhome can be a fantastic way to earn some extra money.
It’s not difficult to do and the profit can be excellent. You might even decide to buy several motorhomes and make a lucrative business out of it!
If you’re interested in buying a motorhome we can help. Please give our friendly team a call for more information.
