What happens when a renter damages your RV | Is it worth it | July Update
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- Опубліковано 8 сер 2020
- Our RV was damaged by a bad renter! How we handled it and the process of filing an insurance claim. Also, an update on how it's going renting out our two RV's on Outdoorsy and RV Share.
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Thanks for being transparent with your experiences. Sounds like you need to keep the coupler lock on until you hand over the door key 😂
For sure, lol!
Great video. Way more information than I ever thought I would get. Keep up the good work.
Glad it was helpful!
Hi Matt, I'm sorry to hear that and congrats for the way you're approaching it. My family and I had a great time renting your trailer.
Thanks so much. And you were a fantastic renter btw, wish they were all like you!
We Airbnb our RV. We don't allow renters take it out. We keep it on property, and they rent it for a few days stay. 17ft camper, making 1700 a month on average. Less risk with damage and we can block dates we want to go camping. It's been working for us. Great tips!
That is great option, wish we had the land to do that!
I'm thinking to do that in my property, but I concern about my neighbor I only have 12 ft wide between my house and the fence .. any advice is appreciated..
This just helped me with my decision. East Tennessee
Hi Matt, I’m here in MN and am thinking of buying and renting an RV. I’m really learning a lot from your videos. Thank you and hope to continue learning before I make the move.
Thanks Josh! We are still learning as well, seem like every month, something new pops up. If you end up pulling the trigger on an RV, let us know what ya got. Good luck!
Awesome comprehensive video - thanks for taking the time to share your experiences!
Glad it was helpful!
We are in the process of buying a trailer that we want to rent out to offset the cost and I just wanted to say thank you for all the videos and updates you post. I've been watching them all and getting a lot of good info. So thank you for that!
Glad they help, and thanks for watching!
Thank you for creating this video. My mom just received her RV back from her renter and it's totally damaged. Super upset and trying to help her navigate this.
Bummer. What got damaged?
just bought a 2800BH.......been binge watching.....love you already.....
Welcome aboard!
I enjoyed the video, but you going over the numbers at the end earned you a sub. I don't subscribe to every channel that has videos I like, but I subscribe to those that have great content that is a value to me. Thank you sir.
I appreciate that!
@@DriveNorth I'm binge watching now. Great info, my friend.
Appreciate the 💯% straight forward detail on this info. Not sure I could emotionally handle 1 bad renter.
After a bad experience, you do start to wonder if it's worth it. However, after doing this for five years, I've been surprised how good the vast majority of renters are. We've only had to file one insurance claim so far. There have been a few minor things that got damaged, but the renter's were very quick and willing to just pay out of their own pocket. I've heard so many horror stories, so perhaps we have luck on our side!
Your videos on the 2400BH are very helpful. We are looking at one as our first new family trailer. This maybe a bit cheeky but i did have to pause this video on the opening credits for the rear stabilizer. Not that i havent left a site without the door fully latched before.
We are on year three of our 2400BH, and overall have been very happy with it! Lol with the stabilzer....we were actually just repositioing in that shot, that is why it wasn't up all the way. Although I did destroy that same stabilzer last summer making a u turn in parking lot with a steep incline! Thanks for watching.
The stories of rv renting 😢, first renter I had ripped off the awning stained the floor 2021 jayco class A ! I got 1,000 from insurance that covered almost the awning arm ,I just got my rv back 12 rentals deep ! Guy took out a tree ripped 20 foot by 4 inches 😢! Insurance wants to pay 5,000 for a job that first estimated 20,000 😢! It’s definitely a tuff industry ! I charge 450 a day as it’s a class A ! Pictures are definitely worth a 1,0000000 words
Yikes, rough start! Yes, really good pre trip pictures, and video are a must. Best of luck!
Thanks for sharing your story and sorry for the bad renter experience. Like you said, part of doing business. Stay positive
Thank you, I will
Very, Very helpful video. Thank you
Glad it was helpful!
Another good video. I can see the emotional attachment getting in the way of renting. But as a business tool it might be okay since you may use a different one when you go mostly full time. I am retired and am looking into part time where we plop down near one of the kids and hang out for extended stays. Thanks again for your video.
And thanks again for watching!
We’ve been renting our Grand Design for the last two years on RV Share and Outdoorsey. It’s been an adventure for sure. Its amazing how people will treat your rv and then get upset when you charge for what they’ve damaged.
RV Share is a pretty good place to rent. With them you have to remember that the renter and the person renting out the rv are BOTH customers of rv share. So their kinda caught in the middle. We only charge 650 dollars for a deposit and that’s not enough. All in all we have made some money and been able to meet some really nice people. We do keep a book of every renter and there is a black list. Anyone doing this my advice is to document everything you can so if you get in a situation it’s a little easier to deal with.
Good points. Documentation is key and doing a walk around video before each rental really helps. We upped our security deposit up to 1500 and it hasn't reduced our bookings. What model are you renting out?
It’s a 24BHE. It’s a 2020.
Sounds like you have a pretty good hold on your rental business 🎉
Thank you
Just checked out your channel. ATV rentals, looks like a good side hustle too
COVID helped my business. 2020 was the best year that I have ever had. People wanted to rent and not stay in motels/hotels.
Do you think 21 will be just as strong?
Thanks! Really learning a ton from your videos as I consider renting out my toy hauler. Question, Could you have denied the rental at the time of pick-up?
That's a great question and I don't a definitive answer. If they didn't have a pre approved driver or vehicle that wasn't capable of towing the rig, I suppose. Otherwise if they haven't violated any policy yet I think you are obligated to honor the booking. I'm not sure what would happen if you denied the renter at pickup, perhaps the platform could suspend your account?
Hey there! Thanks for the great content! I would love to talk to you and pick your brains a bit about RV rental. We started renting our class C and are considering buying and renting more than one.
Feel free to go our website and and reach out with any questions you have in the contact us box. I'd be happy to respond.
Thank you for your videos! They are very helpful.
Do you have a gps tracker in your rv’s? If so, which one would you recommend?
Yes, we use Trac4 and have been pretty happy with it.
YOU can request a supplement. They will initially low ball the first estimate (it costs them nothing) 99.9% good shops request a supplement so you can also.
Great suggestion!
I've been wanting to rent an RV but I just don't trust the $500+ security deposit. Just feels like it opens the door up for false damage claims. I'm not savvy enough about RVs, I'm concerned that even if I take photos there may still be angles where the other party could submit a false claim (e.g. AC functionality, something the drawers, etc.). It's just not worth the stress of taking 300 photos and video of AC functionality with thermometer in hand, etc. to lower the odd of fraud. Additionally just the stress of fighting a false claim is not something I really want to be a part of.
We upped our security deposit to 1500 and that helped with piece of mind. An honest walk around with the renter showing them the RVs imperfections beforehand helps too. It's not without it's risks though. That being said, we just finished up our third season and only had to file one claim.
@@DriveNorth Well that takes away the renter's piece of mind. I would rather buy an RV and risk losing 5K if I don't like and immediately sell than take my chances on these RV rent sites with high security deposits and high nightly fees.
Great video very helpful you said something about a face book group for people that rent out their RV could you tell me what group that is thanks
facebook.com/groups/1643826728976604
I love you videos
Thanks!
Your videos are incredibly helpful! If you get "bad vibes" from someone when they show up to pick up your RV, how do you handle that? Can you cancel their reservation??
Thank you! I wish you could bail out when you get bad vibes, but you do have a contract with them, so you are kinda stuck. It's best to weed out the bad ones during the communication process from when the book to before they pick up. I could have canceled this one based on the fact that they did not bring a truck without the right hitch. Hindsight, I wish I would have.
Was wondering the same thing
If you cancel their reservation, you should pay for their gas and time they spent to drive down there.
Wow!
Thanks
Great videos Matt. You had mentioned your deposit was too low. What is your current deposit on your rig. Do you also have a cleaning fee, delivery fee, etc. As I am recently retired, I am considering buying a Bunkhouse travel trailer. However it will be an older rig, but in really good shape. Also if your having someone pull the rig with their tow vehicle, a blow out happens, who is responsible for that? I would assume RV share has road side assistance for something of that nature. Sorry for all the questions but I appreciate being educated through others that have been there done that.
We've since changed our security deposit to 1500 and it hasn't deterred rentals. We only charge for cleaning if it is excessively dirty which rarely happens. All rentals come with road side assistance, and if there is damage to the trailer during a blow out, that would be covered by insurance. We've only had one flat during a rental, but the renter was pretty handy and just changed it himself. The tire just needed a plug, so we didn't charge him for it. Best of luck with your bunkhouse!
well done
Thanks
Thank you for sharing your experience. Did you form a business entity like an LLC for your RV rental business?
I didn't for 2020, but will be for 2021. Thanks for watching
Thanks for sharing. Looking at the numbers so far it doesn’t look like a good investment. If u add in repairs and cleaning and your time probably in negative cash flow. Hope i am wrong and it work out for u guys.
So far I think it's working out. We do have a decent amount of income comin in (after repairs/maint) and will have our rig paid off in 2-3 years. Thanks for watching
Great videos! This is helping us make a decision with our RV. I do have a bit to go until I can wrap my mind around using our $200,000 RV as a business and removing my personal feelings. My husband keeps telling me that if it’s sitting, it’s only costing us (we just started a homestead so we may not have as much time to use it).
Anyway, my big question is how does this all work with taxes? We live in TN so obviously it may be a bit different but I had not even thought past federal tax until I was reading info on Outdoorsy about all these other taxes. We do not have a state income tax, however I have no idea about lodging taxes or things like that.
I don’t expect anyone to know exactly what I would have to pay but just any guidance or experience with it would be so helpful to us in making this final decision.
Thank you so much again!
What great is that you can deduct a lot of things when you are renting out your rig, including depreciation, insurance and interest on payments. Last year we took in $7700 net with one RV. After calculating in expenses and deductions, our tax burden was next to zero. Your must have a class A perhaps? What area will you be renting it out in?
@@DriveNorth Yes we have a 2022 Georgetown kt7.
We live in Winchester, TN right near Tim’s Ford Lake and state park. There are RV parks popping up all around us. We are only going to rent either on our property or we will bring to a campground and set it up. Haven’t even decided on the radius yet.
My husband is all for it but I’m a bit nervous. I’m getting there.
He’d prefer to jump in fully and allow folks to take it out - I need some more time to sit with that.
Try RV easy or outdoor. I heard a lot of good things said about them .
Thanks, I'll check that out.
Considering doing this. We live in Brooklyn and don't have the space to keep one.
Yes, having the storage space if a big factor.
Hi,
Appreciated your video. If outdoorsy’s reimbursement for damages is less than the total damages, would you go through your insurance for the remainder? I assumed you would still carry insurance on your RV, correct? Thank you
Outdoorsy should cover all damages related to an accident as they did with ours. The exception would be if damage was done that could not be filed under an insurance claim, like awning or interior damage. That would come out of the damage deposit. You can not use you own insurance for anything that happens during a rental.
I love your content ❤ it’s a little hard hard to hear 😊
Thank you. I've upgraded my mic, so hopefully future videos will sound better.
We are new owners of a new 2021 Grand Design Imagine 23BHE. We love our camper. Are you concern renting out your trailer during this pandemic? Especially the beddings and bunk beds being used by somebody else.
We are not concerned. We are young, healthy, and have no risk factors. Most of our renter's seem to be of the same demographic and don't seem overly concerned either. We still give it a good disinfecting between rentals though. Enjoy your 23BHE!
How do you know if the underside is damaged? Maybe film that too. Do you film the people too and have them verbalize the condition?
I film a walk around prior to the rental but I don't actually film our customer interactions. They do sign off on anything we add to the return forms though, or they can dispute it through the platform. We've never had someone actually do this however. As far as the underside, I do a quick visual inspection prior to signing off on the return.
The wife and I are tossing around the idea of buying and renting out a camper as well. Are you located in the metro or outlying area? Do you deliver to people or do they always come to you?
We live in a 2nd ring suburb of Minneapolis and I've noticed nearly all our renters live withing twenty minutes of us. I think renting out in a rural area would be tough. We get a lot of requests to deliver but I don't have the time/flexibility with my job to do it. Where you located?
At 3:55 I woulda been like what camper? Your at the wrong house.
LOL
Hey Matt, Joshua here. I'm also thinking of buying a travel trailer just to rent out. As this is just for business, I wouldn't care about using it myself and therefore would want to rent it out as much as possible. Is there a way to rent it out more than just on weekends?
For sure, we get all kinds of rentals. Check out my "Is it worth is series" to see more.
Hi! I'm really interested in buying and renting a rv. Were there any unexpected costs to doing this that you didn't realize when you first started?
Hello! Asides from the cost of the initial accessories, we've been surprised that we are going through several sets of sheets, a few screen repairs, and lots of cleaning/washing supplies. I'll be adding all that to my spreadsheet soon. I cover some of the initial stuff we bought in this video: ua-cam.com/video/llxPe8nKE_k/v-deo.html
Did the insurance cover the missing chair? I may have missed that part.
That is what the security deposit is for.
Can you find a mobile RV REPAIR /Body fender guy.he might be good to keep on a retainer.
Good call!
I was wondering why you haven't included depreciation cost as part of expenses?
For 2020, the spreadsheet was more of a snapshot. For 2021, I'm going to add it in.
How much do you vet people before they rent the RV? Can you refuse them based on lack of experience? How many are renting it who have never used one before vs seasoned pros?
We do have a bit of back and forth communication before the RV heads out. There have been a few that have been weeded out. Most people who rent have camping experience, but there are newbies that rent too. Having a good walk through video to send out really helps.
So when you have an insurance claim like this, does it affect your insurance like it would if you crashed a car?
No, the custmer is always paying for the insurance, so the rates stay the same.
Do you think it’s profitable to do it where I would set it up myself or do you find that a lot of people tow it themselves?
I think there is money to be made for delivery. I have a lot of people ask for it, but I just don't have the extra time to do it.
What if the renter does not pay, then you take her to court and she loses, but still doesn't pay what can you do? Also according to the rules, when you meet a renter and have a bad vibe can you refuse to rent to that and last but not least, did you lower the rent to the other customers who get a trailer that is scratched and dented.
Good quetions. Hopefully we never end up in court! I'm not sure, but I suppose the court could order that wages be garnished. I don't think you can cancel on a vibe as you both entered into a contract for the rental, and we took care of some of the cosmetic things, so we did not lower the rental.
If I wanted to rent your Grand Design how do I ensure it is yours I am getting through one of the two sites? 2400BH or 2800BH?
Hi Stephani, ours is a 2400BH. Here is a link for it with outdoorsy with a $50 discount coupon if you are interested. www.outdoorsy.com/invite/m9covu/renter
Do you get any reimbursement for your time and lost rental time? Did someone else have it booked and did you have to cancel another booking because of the damage etc.? These are the things I'm wondering about.
No reimbursement for time and lost rental. I have a friend who had to cancel a couple of future bookings due to a major repair. One of the risks of this kind of side hustle.
What happens if your rig went to the shop and not available for rent? Are you responsible to find a replacement?
That actually happened to a friend of mine who rents out his RV. Sucks for the person who booked, but their booking gets canceled and they are on their own. I would try to make up for it and offer a discont on a future rental if we ever went through that.
I know im late here, new to rv share. With this bad experience, did your insurance rate go up? for either personal insurance or The RV share insurance cut?
Since the insurance is paid for by the renter through the platform, our personal insurance is none the wiser.
I have been in the RV rental business for 41 years. Being in control of your own insurance is much better than being dependant on a company that provides insurance only when you have a rental and depending on them to do the right thing. You have no control and if you do not jump through their hoops, you do not get compensated.
That's good advice
@Royce what insurance company do you use?
Hi Matt. I sent my Impact 300 toyhauler on a rental in November and it came back damaged. I filed the damages with RV Share and they transferred to Travelers Insurance agent Sophia Lomonaco. This woman has been no help in getting my camper repaired. The renter claimed he had pictures showing the damages previous but has yet to send to them. After talking to an attorney, I will be sueing RVShare, the renter, and the insurance company.
That sucks! What kind of damage we talking about?
what are cold expenses? If you don't calculate repairs, Do you have full comprehensive insurance?
By cold expenses, do you mean start up costs?
@@DriveNorth No Costs each month without financing a trailer. Insurance, rv storage, cleaning supply, etc...
Yikes!
Indeed
I make 4k in two weeks. I read a comment saying that’s a lot for 3k. I assumed a month not a whole year. wow 😬
nice
What are the expenses you pay? Why is it -$142 on black out months and -$383 on regular months?
Expenses listed are only RV payment and Insurance. It went from $142 to $383 because that is when we added a 2nd rig. It's negative because I was making payments, but had no rentals. In my next update video, I'll be adding in actual expenses.
hello how do you determine how much you charge per week per month etc??
I look at what other similar RVs go for and base it on that. I started out on the lower end, but have upped it with demand.
Maybe include this clause to contracts: “ Under Penalty of Death....”
LOL
It takes all kinds
👍
Are you doing depreciation when doing taxes each year? A camper is over $5,000, so I'm curious about doing straight line depreciation and what not.
Yes, that if factored in, but I don't have the specifics as our accountant does it all. I'm not done with 2020 taxes, but our tax burden for our first year (partial year) was zero with depreciation and expenses added in.
Once you do meet with your tax preparer and you come up with a depreciation factor would you be able to post that in a upcoming video. Interested as my wife and I are thinking of renting out out TT. Thank you for these videos very interesting ride for sure!
@@MrGursk12 Our accountant has us using the double declining balance depreciation method.
@@DriveNorth Thank you for the Reply Good information.
@@MrGursk12 Welcome. Good luck out there!
One thing you did not touch on. If you have a bad feeling about a renter, can you just sa no?
You both signed a contract, so I would say no, unless you something solid to cancel the deal. Having the wrong tow vehicle could be an example.
I'm the type that will find every flaw and point it out.🤣 Not paying for other peoples mistakes!!!
It's actually a smart thing to do......as long as you are not that guy who then complains about everything else later!
Can you explain the $383 expense for almost every month?
That was the monthly payments on our campers.
Maybe I missed it but...
What happens to the deposit? Is it applied to any deductible? How much did you raise the deposit to? Why?
Plus... if you are fully booked and making only 3k a year net, on a 30k camper, that suggests a 10 year payback. Will it last that long? If it doesn't last longer, then it is not a money maker, but a liability overall. A liability albeit with a good cash flow.
We upped the deposit to 1500. We figured that would cover most damage that falls short of an insurance claim, an awning for example.
Our current plan is turn over our rigs every 3-4 years while they are still is good shape and have decent value. While it's not enough for me to quite my day job, so far it's been a financial gain and we have not used a dime of our own money for our "RV life".
Thanks for watching.
@@DriveNorth So...
You use the deposit instead of putting in an insurance claim?
I’ll never rent out my personal trailer. I’ll have dedicated trailers for rental.
we would like to get to that point, but for now, the extra income both provide is necessary.
How many days a year are you booked?
I'll be doing a year end tally in an upcoming video.
Other than damage, I’d also be concerned with some renters possibly bringing in bed bugs.
Yuck
@@DriveNorth it’s something you should be thinking about and checking for after each rental
Yes I’d be highly concerned about bed bugs too.. & fleas. Pets are a big part of most peoples camping experiences. It takes 1 flea or bed bug and boom- infestation that costs tons of $ to get rid of.. ewww the thought is def gross. But a very real reality that could happen. I’ve known of people who’s pets have fleas and they don’t seem to care.. they live with it for whatever reason. Doesn’t bother them etc.. it most definitely bothers me and I’d def factor that into the possible damage list & I’d prob just plan to set off a flea bomb after each rental. Also bed bug spray. Thanks for the vid!! Very informative!!
Did you put your camper in your business LLC or your personal name?
It's in my name only. To be fully protected under an LLC you need to have commercial insurance too and that is very expensive.
So what happens if the deposit doesn’t cover the price of the damage?
Insurance will cover accidents, security deposit will cover other damage like interior and awning issues. If those damages exceed the security deposit, you could be out of luck. That's why it's important to have it set high. We have ours at $1500.
@@DriveNorth Thank you so so much!
Seems like a lot of work and stress for $3K
Not always easy, but so far I think it's been worth it.
That’s significant somewhat passive income for only 2 units.
How is it looking now money wise??
So far tracking similar to last year. Only a couple of open weekends for the rest of the season..hoping for no cancellations.
Nice I'm looking to get a class c, ill keep you posted
Matt, is your rental business under a LLC?
Not yet, but I plan to.
Ok. I am really contemplating this but after reading so many horror stories it does make me nervous.
Maybe it is just me but there is enough money out there to entice my to rent my camper !!
It's not for everyone
how much you pay for your rv
25K, but that was pre covid...these are closer to 40k now!
ouch
👍
All these red flags, but still had them rent it?
We did have a signed contract with them before the rental, so that complicates things
What about depreciation? Your not using two campers at the same time, so you had to shell out big bucks. You probably lost money when you factor that in.
It's a factor, but depreciation also helps offset taxes.
I am a trailer renter do not rent from Outdoorsy the insurance will not cover the inside of the trailer. damages done to our trailer was not covered and outdoorsy did not make the renter cover the chargers. please don't fall for the outdoorsy scheme.
Yes, this is something to me mindful of. That is why we have our security deposit set at $1500.
I can see taking care of ur stuff but ur renting it they see as not theirs
That was my fear, but I've been surprised at how well folds have taken care of our rigs over the two + years of doing this. This one renter was the exception, not the rule.
I just wonder could you refuse them after you got the wrong vibes....
You probably could, but then they would be refunded the whole rental cost.
All 6 of those renters downvoted I see..
Haha.....nice insight!
Ain't no way on God's green earth I'd rent out a camper to anyone. People will never take care of your things as good as you will care for your own stuff... people are to negligent...
It's not for everyone
U talk to much
"Too much"
Unless I was speaking to someone named much, then "you" would be correct.
there is what you call a black box to track your RV
Yes, we have looked into some sort of GPS trackers. Next season perhaps.
ouch
Indeed