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Are you fed up with seeing your campervan sitting on the driveway? Imagine the joy of not only enjoying using your campervan but earning extra income that will help towards the running costs.

There is a way you can enjoy not only using your campervan but renting out and easing the cost of a campervan owner.

Let me walk you through how easily you can maximise your campervan and earn.

On average, you can earn £95 – £205 per night renting your campervan. Depending on the model, size and season. Renting your campervan will give you extra income, covering finance costs, maintenance, and help to finance your own personal travels. You can offset any expenditure against income and will be required to complete a self-assessment by 31 Jan each year and pay any taxes due.

Since 2020 campervan rental has increased drastically. Finding rental campervans or motorhomes during the main season is very hard. They need to be booked on average 8-9 months in advance.

You can rent your campervan privately, but I recommend joining an established company. They will market your campervan rental and insurance protection for a small fee. Reducing any stress if there are any problems. However, it is essential to consider the legal requirements you need to follow to avoid getting into trouble with HMRC and HP Company if your campervan has a financial balance.

What type of campervan rental business should you have?

When embarking on your entrepreneurial journey, it’s crucial to carefully consider the type of business structure that best aligns with your goals. Understanding the legal requirements associated with operating as a Limited Company or a Limited Liability Partnership (LLP) is essential. By doing so, you can ensure compliance with regulations and avoid penalties imposed by Companies House and HMRC.

For sole traders, there will only be penalties for late filing of tax returns and payments by HMRC. There are legal requirements. However, you will not have to register with Companies House, complete Confirmation statements, or have our accounts audited. Although I do recommend hiring a good bookkeeper and having an Accountant submit your tax return. This will avoid any errors, and they will be able to advise you of costs you can and cannot claim.

Submit yearly Confirmation Statement to Companies House	Limited Liability Partnership	Sole Trader
Register business name at Companies House – A memorandum of business type and directors will need to be submitted.	Register business name at Companies House – A memorandum of business type and directors must be submitted.	Register as self-employed with HMRC by 5th October following the end of the tax year in which you started your self-employed business.
Audited yearly by a professional body (Qualified Accountant)	Audited yearly by a professional body (Qualified Accountant)	Keep full detailed accounts
Submit yearly Confirmation Statement to Companies House	Submit yearly Confirmation Statement to Companies House	Submitted self-assessment to Inlane Revenue Deadline – 31 Jan for return and any tax due July – a payment on account (estimate of future tax liability)
Corporation tax	Corporation tax
Keep full, detailed accounts	Submit yearly Confirmation Statement to Companies House

Types of businesses for a campervan or motorhome rental

With over 20 years of experience as a bookkeeper and Management Accountant, I’ve witnessed numerous companies encounter costly setbacks due to inadequate business foundations.

Recognizing the significance of a robust business framework, I emphasize the importance of thorough research and seeking professional advice when exploring campervan rental business opportunities. Understanding the distinctive aspects of various business types and their associated legal obligations allows you to embark on your entrepreneurial journey with unwavering confidence.

Avoiding failure and fostering growth necessitates establishing a solid footing. By equipping yourself with comprehensive knowledge and complying with legal requirements, you lay the groundwork for a prosperous venture.

Legal requirements of a campervan rental business

You need to follow specific requirements for setting up a campervan rental business. This will include researching and speaking to professionals. As well as understanding how to keep records and store people’s information.

Hire Purchase Agreements – If you have a remaining balance on HP, you need to check the small print, and other may be a cause stating the vehicle is for private usage only, not commercial.
Vehicle Insurance – When it comes to insuring your campervan or motorhome, there’s an important detail to consider if you plan on renting it out. You’ll likely be asked to declare whether you’ll be renting the vehicle. If your current insurance policy doesn’t allow this, can it be adjusted to cover rental and private usage? If your existing policy does not accommodate rental use, many campervan rental companies offer insurance options that specifically caters to this purpose.
Road Tax and MOT – Ensure Road Tax and MOT are up to date to avoid invaliding any insurance.
Safety Maintenance – Ensure that your campervans meet safety standards and are regularly maintained. It may involve obtaining safety certificates, conducting regular inspections, and keeping detailed maintenance records. Prioritize the safety and well-being of your customers by providing well-maintained vehicles. Always ensure that any gas and electrical appliances comply with safety regulations.
Data Protection – You will be protected if you rent your campervan via a reputable campervan hire company. However, it is important that you are familiar with data protection laws and regulations, such as the General Data Protection Regulation (GDPR). You will have private information of the people renting your campervan, which needs to be stored securely and destroyed when no longer required.
Licensing and Permits – Check with your local council that you can operate and campervan rental from your home. Compliance with your local council is important to run a successful campervan rental business.
Business Bank Account – You will need a business account if you are setting gu a limited or LLP business. You can use your normal bank account if you are a sole trader. However, I advise you not to do this as it can become messy. You cannot use the money for everyday expenses. Having a separate business account will allow you to track your incoming and outgoing correctly. You must provide a business plan and proof of identity for money laundering.

How to decide on rental rates?

Understanding the correct rental rates for your campervan is crucial to ensuring a successful rental campervan business. It’s essential to strike the right balance, avoiding undervaluing or overcharging for your campervan or motorhome. Pricing too low may not fully cover your expenses, while setting high rates could deter potential renters.

You need to consider several different factors before renting your campervan or motorhome.

Understanding your campervans expenses

Before you set up your campervan rental business, you need a full understanding of the outgoing costs. These will be the set costs you must cover, whether monthly or yearly.

Hire purchase of loan payments
Yearly service and maintenance
Insurance
MOT
Wear and tear of tyres, engine and other mechanical issues
General repairs
Safety measures of electrical and gas devices
Council permits fees
Storage fees when not in usage

Market research for campervan rental business

Market research is essential, providing a solid foundation for your campervan rental business. Providing you with the necessary information to understand competitors, establish competitive rental rates, and develop targeted marketing strategies. Or in-depth knowledge of using established companies to market your campervan rental.

Investing time and effort in market research helps you make informed decisions, reduce risks, and maximise opportunities.

Competitors – Researching your competitors lets you identify their strengths, weaknesses, and unique selling points. Enabling you to differentiate your campervan that appeals to customers. Completing full research of competitors enables you to make important decisions
Rental Rates – Setting rental rates is crucial to your business’s success. Market research can help to evaluate the rental rates in your area. Considering factors such as vehicle type, amenities, seasonal demand and reduced rates or discounts during out-of-season. Ensuring your rental rates are balanced between competitiveness and profitability. Ensuring that your rental rate is attractive to customers.
Target audience – Understanding your target audience will provide you with insights into understanding your customers. Such as their needs, booking behaviours, travel and patterns. Allowing for easy engagement of potential customers.
Identify gaps in the market – Investing time and effort in market research helps you make informed decisions, reduce risks, and maximise opportunities. It enables you to identify potential gaps in the market, anticipate industry trends, and adapt your business strategy accordingly.
Financial planning – Understanding the trends, rental rates, marketing costs, running costs and commissions if you rent on an established website will help you plan financially. Allowing you to forecast the financial situation of your business.

For your market research, use Google, Facebook groups and speak to other owners. Visit forums, and ask as many questions as you can. Create surveys to receive good insight and interact with people. Trade shows are another good source of research. Research campervan rental websites and speak to representatives to ensure you have in-depth knowledge of what they offer and the financial implications.

If you have not purchased a campervan yet, but want to start up a campervan rental business, it is important to have a checklist when searching. Our article will walk you through all the different considerations. Including the different types of motorhomes, which will guide you when you are researching how much you can rent your campervan out for. As well as where to check for stolen, write off when buying a second hand motorhome or campervan.

Promoting your campervan rental business: Do it yourself!

By establishing a solid online presence and implementing effective systems, you can confidently promote your campervan rental business and provide a seamless experience for your customers.

Establishing a solid online presence is key if you’re considering promoting your own campervan rental business. It’s not just about advertising your campervan; you must also actively promote available dates on platforms like Facebook and Instagram. However, managing your online presence can take time and effort, and you may receive inquiries late at night. So it would be best to have a shut-off time in the evenings.

Having worked with a campsite and glamping company, I assisted them in setting up their website and Facebook page and implementing promotional strategies. I learned that staying connected and responsive, even outside regular hours, was crucial.

Creating a dedicated Facebook page or having a website equipped with automated payment and confirmation systems can streamline the booking process. Transparent terms and conditions will ensure you are prepared for unforeseen circumstances. Remember, you must arrange suitable vehicle insurance coverage tailored for renting.

Unveiling campervan rental websites: Rent your campervan effortlessly

Promoting your campervan for rental on an established website will help start your journey. For a small fee, on average 10% an external agency will provide you with their expertise. Allowing you to promote easier, receive bookings faster and reduce stress.

Greater visibility
Already has an audience
Experienced staff to maintain the website
Higher experience with SEO
Advanced search options
Secure payment facility
Tried and tested Terms and conditions
Your advert will be vetted and amended if necessary
Repeated customers
Fees include marketing costs
Offer breakdown services and insurance
Will hold a security deposit on your behalf
Automatic payments to yourself on the collection of campervan
Inbuilt booking calendar
Automatic email set-up

Self Promoting vs outsourcing campervan rentals

When promoting your campervan rental, you can either handle the promotion yourself or outsource it to a specialized agency (website).

Paying for advertisements can be costly and involve a steep learning curve. Or you can promote for free on social media platforms, which you need to engage with people continuously—highlighting availability frequently. It is a slow process and can be frustrating at times.

On the other hand, outsourcing to an established campervan rental company can significantly increase your campervan’s visibility and rental potential. Their expertise and existing customer base can save you money in the long run. While a fee of 10% may initially seem steep, the quick returns on your investment make it a worthwhile expense.

How to attract renters for your campervan?

Whether marketing yourself or using an external agency, understanding your target audience is critical. It will help you to create a compelling listing for promoting your campervan rental business. You need to ensure that the advert stands out against your competitors.

Before creating your advert, read competitors; this will give you key insights on how to write the advert. You want it short and informative, as customers will get bored and move on to competitors. In contrast, you want to provide as much information as possible.

Using an external agency website, they will review your advert and may have questions. They will ensure that it is SEO-friendly and promote your campervan rental. It is in their interest to ensure they have the best advert possible.

Photos – 15-30 high-quality photos that set the scene of your campervan in a natural environment. Allowing the customer to imagine themselves in your campervan. Remove clutter, but show photos of a dressed table, bedding area, and sitting around a campfire a night. Highlighting as many different areas as possible.
Headline – Catchy heading that draws the potential renter.
Description – Create a clear, compelling listing detailing who the campervan would be ideal for if the sleeping area converts to a dining area. What special features your motorhome has? What would you be looking for when searching for a campervan to rent?
Features – Including the number of berths, seatbelts, fuel type, and vehicle weight, as some customers will not legally be able to drive and transmission.
Amenities – Oven, fridge, microwave, toilet, shower, Stove, Solar panels, radio, tv, Wifi, sink, Table and chairs and heating.
Extras – Provide the opportunity for potential renters to hire a BBQ, awning, bike rack, or kayak.
Restrictions – An important key factor is ensuring that you place restrictions. Such as no smoking, no festivals or pets.
Cancellation Policy – This has to be strict, and you will lose money if the customer cancels on the day or the day before travelling. You may not be able to replace the booking and lose money. On average, cancellation is for a full refund within 48 hours of booking. Reduce the amount refundable within a strict number of days before collection of the vehicle.

Managing bookings and rental logistics

When managing bookings for your campervan rental, it’s crucial to consider the logistics involved, especially if you’re promoting the campervan rental privately. Having a well-established booking system is essential for a seamless rental process. If you choose to work with an external agency, you can utilize their booking system if you’re not accepting bookings through your website.

To prevent conflicts, you can block specific dates on your calendar if you receive bookings through social media or for private use. However, if you have your website, you’ll need a booking system that integrates smoothly with the agency’s system. It ensures no double bookings and allows you to direct renters to the agency’s website for a hassle-free experience.

If you’re considering promoting your campervan on multiple external agencies, an excellent system to consider is Bookalet, starting from £129 plus VAT. I’ve used Bookalet in the past and integrated it with external agencies and a private website to avoid duplicate bookings. Bookalet automatically updates the external websites or your website when bookings are received. This level of automation is crucial for efficient booking management.

You can use Google calendar, or a paper diary when promoting yourself to track bookings, but you will need to ensure that the renter has full confirmation, including Terms and conditions, confirmation of deposit, when the balance is due and what to do leading up to the collection. Communicating with your renters is key as you want them to recommend your campervan business and be a returning customers.

Screening customers before accepting deposit

A vital part of owning a campervan rental business is screening all customers. Whether you rent your campervan via an external agency or yourself, here are the reasons why you must ensure that all customers are vetted and verified.

Security and safety – Verify their identities and gather the necessary information to ensure the safety and security of your campervan. This includes checking their driver’s licenses, conducting background checks, and confirming their driving history.
Insurance coverage – Some insurance policies for campervans require certain criteria to be met by renters. By screening potential renters, you can ensure they meet the requirements. Enabling the maintaining insurance coverage and protecting you from potential liability.
Legal requirement – It is also important to ensure that their licence clearly shows that they can legally drive the weight of your campervan. Depending on when they obtain their licence will determine if they can drive a vehicle above 3500kg.
Campervan protection – By gathering as much information as possible, you can avoid potential damages, theft, or misuse. If customers have previously rented with an external agency, they can view their historical records. Ensuring you have a reliable and responsible customer is vital.

Above all, you want peace of mind that your campervan and equipment are safe and in good hands. By completing vital checks and verification, your campervan business will thrive.

Maintaining and upkeeping your campervan

Ensuring the campervan is checked for safety and general maintenance is critical for each rental. Maintenance includes checking screen wash, oil, tyre pressure, wear and tear of types, and all amenities work correctly and safely. If there are any repairs, these need to be addressed quickly and efficiently without delaying your next booking.

Ideally, allow a couple of days between each rental. This will also allow you time to ensure that the campervan is in a rental-ready condition. As well as maintenance and safety checks, it is also important to allow time for cleaning and upkeep. People expect a high level of cleanliness. They do not want to see dust, dirty fridges or cooking.

To ensure that nothing is missed, create a checklist. Highlighting the vital points and a tick-off once complete. Also, take your campervan out for a short trip to check that it is driving correctly.

As well as having a checklist for maintenance and cleaning, I recommend ensuring that your campervan is fully equipped with safety essentials in case of breaking down. Ensuring not only the safety of your campervan whilst the renters wait for the breakdown service, but also for the safety of the renters.

Providing excellent customer service

Having excellent customer service for your campervan rental is essential. Provide specific times that you can be contacted and an emergency number outside of hours. Communication with or potential renters is essential and will help promote positive reviews.

Create a handbook manual for your campervan. Detailing how each part of the motorhome or campervan works. From emptying waste water, connecting new gas bottles if needed, to operating the hob or oven. When the renter collects the campervan, go through everything and demonstrate how everything works. Being shown can often be an easier way to learn. You can also have demonstration videos to Wapp over to customers on arrival.

During your communication with the renter. Find out if they have booked a campsite and the location. Research the area they will visit and compile a list of places to visit. If they are not staying in one place, find out their route and provide them with some alternative stopping locations where they can pitch for the night.

Being as helpful to the renter as possible and going above and beyond will increase your review scoring either on an agency website on social media. Ask people to leave reviews for you, don’t be shy about asking. Positive reviews increase business, and you want recommendations and returning customers.

Choosing the right campervan rental platform for your business

Choosing the correct campervan rental platform is essential as you want to ensure it will increase renters via its outreach. The performance f the platform also needs to be considered, and it has high-quality reviews and performance. It can harm your campervan rental business before you start if the reputation is poor.

Outreach and performance – Understanding the outreach the platform has is vital. You need to ensure that it has worldwide coverage. This will provide information on how they market their business and their branding. Reasearch online reviews for the company, and join Facebook groups and ask who they recommend.
Structure – Check to ensure that their structure is good. Check their commission rates and how payments are made. Are the commissions a standard percentage or a flat rate? Companies vary; however, going with the cheapest is not always advisable.
What do they offer – Compare rental companies’ platforms and rates. Check the layout for adverts and how much information you can add to your listing. What is included in the fees, and how strong are their verification processes for customers and terms and conditions? How much do they hold as a breakage fee per customer? Another priority is their support network. You want to be able to contact them urgently is needs must.
Insurance policies – For an additional fee, external campervan rental companies will already have insurance which will cover the rental of your campervan. Including additional cover for liability on average up to 1m. This can cost, on average, £500, although reading the small print before taking it out is important.

Preparing your campervan for rental: What upgrades to you need

Preparing your campervan for a rental is crucial in ensuring a positive experience for you and your renters. Although upgrades can significantly enhance the appeal and functionality of your campervan, attract more potential renters, and increase your rental income.

Research other campervan rental listings, and compare your campervan to theirs. You may consider some upgrades as essential. However, they may not be required.

Before you commence any work, list everything that needs to be completed and get a budget. List the important to least important. Some upgrades may be completed over time as income grows from your campervan rental business. You can set aside money towards the improvements.

Cleanliness and aesthetics – Thoroughly clean inside and out making it look well-maintained and appealing. This will leave a lasting impression on campervan renters. If the upholstery is marked, either replace or clean. Include a few decorative touches to create a welcoming atmosphere.
Safety features – Install safety features such as smoke detectors, carbon monoxide alarms, fire blankets, and fire extinguishers. If you have existing ones, check that they are in date and have a charged battery.
Storage – Add additional storage to maximise space and convenience for the renters. Consider adding a roof rack and roof box for storing the table and chairs.
Upgrade amenities – improve kitchen appliances such as fridges, that is more compact, oven, and hob. Consider adding a portable stove for outside cooking.
Technology upgrades – Everybody loves technology. Upgrade and install plenty of USB charging ports, Wifi routers, entertainment systems, and smart TVs.
Solar panels – Installing solar panels will allow renters to camp off-grid and enjoy an authentic campervan experience. It is a more sustainable renewable energy, offering a quieter experience and less reliance on traditional methods. They are low maintenance and cost-saving over time.

How to rent your campervan for extra income