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Is renting a caravan a good investment?

Are you considering buying a caravan rental investment? Perhaps you’re asking yourself – “Should I rent my caravan to holiday makers?” If so, you’re not alone, as this is a common question people ask when looking into purchasing a static caravan rental investment. Renting your caravan can be a great idea as it can help offset your running costs, allowing you to make caravan ownership more affordable and even turn a profit!

So if you’re asking yourself “should I buy a caravan rental investment”, read on where we have answered many questions people ask regarding this subject.

  • If I rent my static caravan or lodge will it incur additional wear & tear?

Possibly. Your static caravan or lodge will be uses more so is bound to incur extra wear & tear. You would need to weigh up if the additional income is worth the additional wear & tear. Renting your holiday home in the peak season can bring in between 500 – 3000 per week so can be well worth it.

  • Can I be in control of bookings?

You will always have an element of control over your bookings. You may manage the bookings yourself giving you full control or allow the park to manage your rentals for you. If the park manages your lettings, you would usually give them certain weeks per year to let and keep the remainder for yourself. Holiday parks offer a range of sublet management options so we would advise to request more information from the park you are interest in.

  • Will my caravan investment be insured against damaged or missing items?

Insurance is your responsibility and you would need to ensure the insurance company is aware that you are subletting. Most insurance companies offer full and comprehensive insurance which is perfect should you wish to rent out your caravan as an investment. This can include:

  • Accidental damage
  • Malicious damage
  • Contents insurance
  • Public liability
  • Can I use the caravan when I want to?

Usually yes. You would notify the holiday park the dates you require for your own use at the start of the year. Some parks require certain dates to qualify so we recommend you make enquiries. Obviously if you are managing your own bookings its entirely up to you when and if you book your static caravan or lodge.

  • How do I get used to someone else using my static caravan?

Unfortunately, if you go with a caravan rental investment, this is something you would need to get your head around. The great income you will be earning from renting your holiday home comes with the trade off that others will be enjoying your holiday home also. Perhaps let out in chunks e.g. Only for July & August allowing you to use for the rest of the time.

  • Will I have to pay tax on my caravan rental investment?

Yes, you will. Any income you may make must be accounted for within your annual tax return. If you run the holiday home as a rental business, there are many tax breaks associated with running your static caravan rental business which are well worth looking into.

  • Will people want to rent my static caravan?

Yes, people will definitely want to rent your static caravan. Obviously, you will need to present in good order and if you let privately, set your pricing tariff correctly to attract people looking for good value. The staycation holiday is growing in the UK and at certain times of the year there is a huge demand for holiday lets.

  • Will my holiday park allow me to rent my static caravan out to holidaymakers?

Many parks only permit your family & friends to use your static caravan and do not allow commercial lettings of any kind. This is because they want a park which is for owners only which can have its benefits. However, there are many parks which allow you to sublet your static caravan either privately or through the companies in house letting scheme.

Are you looking to buy a static caravan on a park which allows subletting? Here at Parklink we have done all the work for you and grouped these parks together in one place! Click here to view all parks which allow subletting of some kind. Parks offer various options when it comes to subletting where some allow you do sublet privately and others you have to undertake exclusively through the parks letting scheme. Please contact your park of choice for further details.

Thanks for reading!

Also, why not read our other blog titled ‘Renting out your static caravan or lodge’ – Pros & cons – Click here!



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