Since the 1960s, campers have been a popular method for families to travel and explore the beauties that our nation has to offer. However, until recently, recreational vehicle travel was restricted owing to the high expenditures of buying and maintaining a camper. With the advent of peer-to-peer camper rental companies like RV Share and Outdoorsy, visitors may now hire the size and type camper that best suits their requirements without incurring a high price tag.
Table of Contents
Follow these ten steps to start a camper rental business:
Plan your Camper Rental Company
Create a legal entity for your camper rental business.
Tax Registration for your Camper Rental Company
Create a Business Bank Account and a Credit Card
Create an accounting system for your camper rental business.
Get the Permits and Licenses You Need for Your Camper Rental Business
Purchase Camper Rental Business Insurance.
Create a brand for your camper rental company.
Make a website for your camper rental business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to launching your Camper Rental Business has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a Camper Rental Company?
When creating your business strategy, think about how many recreational vehicles you want to sell and what style(s) you want to offer. The majority of your money will go into purchasing such rentals. Each unit may cost anywhere from $20,000 to over $300,000, depending on its age, kind, size, and features. You will also need damage and liability insurance, marketing materials, an easy-to-use website, and a dedicated storage location while your units are not in use.
What are the recurring costs of a Camper Rental Company?
What are the continuing costs of running a camper rental business?
Your rental campers are the foundation of your company. As a result, maintenance and repair will consume a significant portion of your company’s continuous budget. The following continuous costs should be included in your company plan:
Inside and out, preventative maintenance
Cleaning in between rental periods
Insurance
Storage
Advertising
Partnership costs
Who is the intended audience?
Individuals and families that appreciate the outdoors and want a more sophisticated experience than tent camping should be the focus of your marketing efforts.
How does a Camper Rental Company earn money?
The rental fees received from each customer produce money for a camper rental firm. Fees vary based on a variety of parameters, including the size and kind of camper hired, as well as the number of days rented.
How much money may you charge your customers?
Rent varies according to a number of characteristics, including kind, size, and style. Most establishments charge a nightly fee, with special packages available for extended visits. RV rentals often provide limited free mileage and charge $0.35 per mile when the mileage restriction is reached. Startups are encouraged by industry experts to examine competition pricing and carefully evaluate all continuing expenditures when determining their rates.
How much money can a Camper Rental Company make?
The leading platforms indicate a weekly booking average of $1,300. Rentals booked via such networks pay camper owners 25%, resulting in a weekly income of $300 to $400. Entrepreneurs that go it alone will have to work harder to attract prospective clients, but they will receive 100% of all leasing payments, less continuing expenditures.
How can you increase the profitability of your company?
To optimise revenues, company owners should seek for innovative methods to enhance their services and extend their rental fleet on a regular basis. Those seeking long-term development may profit from developing and administering their own rental website, which assists other camper owners with the rental of their units.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your Camper Rental Business is sued, forming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Create a credit history for your firm, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
Certain state permissions and licences may be required to run a 3D printing design company. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Camper Rental Company
As previously said, collaborating with an RV share/rental platform is an efficient approach to reach a larger audience. While you will have to pay your partner a share of your rental payments, prospective clients are more likely to rent from someone who is supported by a recognised organisation. Owners of camper rental businesses are also urged to build a website, promote on social media, and distribute information at local campsites and parks.
How to Keep Customers Returning
As with any company, it’s critical to provide high-quality service and goods with each rental. Each apartment should be clean, well-kept, and well-stocked with necessities like linens and utensils. Special offers such as discounts for long-term rentals and referral and repeat customer discounts can tempt consumers who are weighing their alternatives. Positive feedback from previous clients is also an excellent marketing approach.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.