Renting Out a Static Caravan – How To Make Money From A Holiday Home
How To Rent Out A Static Caravan. Buying a static holiday caravan in the UK has always been popular, but since the COVID pandemic owning a caravan has become more popular. It is not just owning a caravan that has become the current UK holiday trend, it’s also the number of people who are looking to rent a caravan for a UK family holiday.
With the rise in the cost of living, people are looking for more affordable holidays, and one way to reduce the cost of a holiday while still having a great time is by renting a caravan in the UK. Caravan holidays are very affordable, but one way to make them more affordable is by finding a static caravan to rent with a family member. By doing this, you are splitting the cost.
Static caravan ownership is one way to have as may holidays in the UK as you want. No longer do people have to worry about where or what to do for the weekend, or where to go when they have time off work. Buying a caravan, can solve that problem, but it is not cheap.
Owning a static caravan can be a great experience, but it can be costly. There are lots of things to think about which I cover in the article here ‘Buying A Static Caravan’. To reduce the cost of owning a caravan many static caravan owners start their own static caravan rentals business.
Starting a UK caravan hire business makes a lot of sense to reduce the cost of owning a caravan. There are lots of people who are looking for static caravan rentals for a family holiday and according to industry experts, there is no sign of the UK staycation industry slowing down. However, to make a success renting a caravan out to holiday makers it’s important to understand how to rent out a static caravan.
Read How To Clean A Static Caravan
It is not just static caravan owners who start up a static caravan rentals businesses to cover the cost of owning a caravan. Some people buy a static caravan with the whole intention of offering caravans rent for financial gain. But there is one common problem that people have, and that is not knowing how to rent out a static caravan or the legal issues behind it.
Each year thousands of people either hand back their static caravan to their finance company or sell their caravan due to not being able to afford it, or failing to find enough people who want a static caravan holiday. That is why I have put together some tips on how to rent out a caravan.
How to Set the Price for Static Caravan Rentals.
Buying a static caravan can be expensive but running it can be even more expensive. When you add site fees, caravan insurance, electric, gas and other running costs you could be looking at around £5,000 a year. Although it’s a great lifestyle, not everyone can afford that kind of money, and that is why renting out a static caravan can be a really good idea.
Renting out a caravan is not just about helping to pay for site fees and the running costs of a static caravan, it is also a great way to make a profit from your holiday home. You are most likely thinking, what is the legality of renting out a static caravan, and how much should you charge as well as should you ask for a deposit and how much should that deposit be? This guide will explain all.
How To Rent Out A Caravan – Legally
There are many legal and safety issues that you need to follow when looking to rent out a holiday home. Below are the important issues that need to be followed, and these issues are what people renting a caravan would expect.
- You need to obtain a gas safety certificate. This must be obtained each year. However, most sites already have it as part of their contract that all caravan owners must product a gas safety certificate each yea.
Note: This certificate must be displayed within the caravan.
- All caravan owners renting out their caravan must have a portable appliance testing certificate (PAT). This is an annual requirement. However, most parks also require all static caravan owners to have this if they are renting out their caravan or using it for pleasure.
Note: All electrical items within the caravan must be tested which includes DVD players, toasters, coffee machines, and toasters.
- Fixed Electrical Installation Certificate. Your static caravan electrical system must be tested every three years to receive a fixed electrical installation certificate.
- You must have a working smoke alarm fitted inside your caravan
- A carbon monoxide alarm is required if you are considering renting out your static caravan
- All static caravan owners who are renting out their caravan are required to have a fire extinguisher and a fire blanket installed within the caravan.
Read How To Spot Damp In A Static Caravan
How To Rent Out A Static Caravan How Much Should You Charge?
When caravan owners look at renting out their holiday home one of the biggest problems they face is how much should they charge. A lot of people have different opinions on how much to charge for renting out a static caravan so we thought it would be important to speak to professional business people to get a better opinion.
One of the reasons why so many people fail at renting out their caravan is down to not having the right price structure in place.
First of all, it is important to look at the running cost when renting out a static caravan. You need to consider the following:
Electricity. How much electricity will the holidaymaker use?
How much gas are they likely to use?
Cleaning the caravan, how much will this cost?
Offering A Static Caravan To Rent – Compare Large Holiday Park Operators’ Prices
The main competition when renting out your static caravan is the holiday park themselves. So, it is important to look at their prices and what they charge for a similar caravan as yours. Although there will be hundreds of other owners looking to rent out their caravan, make sure you first focus on the holiday operator.
If you are not going to provide park passes, then you will have to take this into account of your rental price. You will have to work out how much on average your guests will have to pay to buy passes from the holiday park operator.
Once you have looked at the prices of the passes, and then looked at the prices of similar caravans then you need to look at undercutting the holiday park. Our business experts have said if you want to really compete and increase how many weeks of the year your caravan is rented out, then you need to undercut the caravan park by on average £70 depending on the time of year.
The Problems Caravan Rental Owners Face
One of the biggest problems for caravan owners when looking at how much to charge for their rental static caravan is the Sun Newspaper £9.99 holidays. These special offers have caused serious problems for caravan owners. Many rental caravan owners have seen a drop-in rentals due to these offers.
Another problem is the holiday park themselves. Some holiday park operators offer some incredible prices and offers, so it is important to compete against them. One way to compete is through offering a great service and generating repeat customers.
