How to Start a Camper Rental Business

Start a Camper Rental Business by following these 10 steps:

1. Plan your Camper Rental Business
2. Form your Camper Rental Business into a Legal Entity
3. Register your Camper Rental Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Camper Rental Business
6. Get the Necessary Permits & Licenses for your Camper Rental Business
7. Get Camper Rental Business Insurance
8. Define your Camper Rental Business Brand
9. Create your Camper Rental Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Camper Rental Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Camper Rental Business?

When developing your business plan, you will need to consider how many and what style(s) recreational vehicles you plan to offer. The bulk of your investment will go towards the purchase of those rentals. Depending upon age, type, size, and features, each unit can set you back anywhere from $20,000 to over $300,000. Additionally, you will need damage and liability insurance, marketing materials, an intuitive website, and a dedicated storage area for when your units are not in use.

What are the ongoing expenses for a Camper Rental Business?

What are the ongoing expenses for a camper rental business?

Your rental campers are the linchpin of your business. Therefore, maintenance and repair will represent a large part of your business’ ongoing budget. Your business plan should include the following ongoing expenses:

• Preventative maintenance - inside and out
• Cleaning in between rentals
• Insurance
• Storage
• Advertising
• Partnership fees

Who is the target market?

Your marketing efforts should focus on individuals and families who enjoy the outdoors and are looking for a more luxurious experience than what tent camping has to offer.

How does a Camper Rental Business make money?

A camper rental business generates revenue through rental fees collected from each client. Fees vary depending upon a number of factors, including size and type of camper and number of days rented.

How much can you charge customers?

Rental fees vary depending upon a variety of factors, including type, size, and style. Most organizations charge a nightly rate, with special packages for longer stays. RV rentals typically offer limited free mileage and an average of $0.35 per mile once the mileage limit has been met. Industry leaders encourage startups to research competitor pricing and carefully consider all ongoing expenses when setting their fees.

How much profit can a Camper Rental Business make?

The top platforms report an average weekly booking of $1,300. Rentals booked through those platforms pay camper owners 25%, yielding between $300 and $400 per week. Entrepreneurs venturing out on their own will need to work harder to reach potential customers but will earn 100% of all rental fees, minus ongoing expenses.

How can you make your business more profitable?

To maximize profits, business owners should continually look for new ways to improve their services and expand their rental fleet. Those looking for long-term growth would also benefit from launching and managing their own rental website that helps other camper owners with the rental of their units.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Camper Rental Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a 3D printing design business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This type of business venture is ideal for the individual who owns or is considering purchasing a camper and would like to recoup a portion of associated costs. Owners should possess a basic knowledge of the mechanics of campers, as well as national and state park camping rules and regulations.

What happens during a typical day at a Camper Rental Business?

As a camper rental business owner, your primary focus will be on customer service. Your day-to-day activities will include acquiring new clients, booking return customers, ensuring your rentals are maintained on online rental platforms, responding to inquiries, putting together quotes, finalizing booking details and contracts, and collecting payments. Additionally, you and your team are responsible for routine maintenance and addressing any issues that may arise while the renter is out on the road.

What are some skills and experiences that will help you build a successful Camper Rental Business?

The ability to communicate with individuals from varying backgrounds is critical to the success of a camper rental business. Customers will look to you for guidance regarding the type of rental that best fits their needs. Your customer service, however, does not stop once a contract is signed. Many will rely on your knowledge of camper traveling, state and national park regulations, best travel routes, and potential issues that could arise during their travels. Additionally, a basic knowledge of the mechanics of your camper would prove beneficial.

What is the growth potential for a Camper Rental Business?

According to a recent study, over 35 million people rent campers each year. This number is expected to increase significantly in the years to come, making this the ideal time to invest in this business venture. Entrepreneurs looking to expand will need to reinvest their earnings back into the business, purchasing additional camper options for potential customers.