Can You Really Earn $2,000/mo Renting Out Your Campervan? -

Van Life: Tips

Can You Really Earn $2,000/mo Renting Out Your Campervan?

By Austin Remey | May 13th, 2022

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A VanCraft Campervan doesn’t just offer freedom of travel, it can also offer financial freedom for those with an entrepreneurial drive. Renting through sites like Outdoorsy and RVShare make the booking process easy and give you access to millions of interested renters. Below, you’ll find a comprehensive investment analysis for purchasing a VanCraft Campervan as a rental asset.

Why Is A VanCraft Campervan The Perfect Rental Asset?

All VanCraft campervan systems are fully self contained and self-sustainable on solar & reusable mechanical energy. That means, there are no black or gray water tanks to service, no loud generators, and no need for over-priced campground plug-ins.

VanCraft’s systems were designed to be as user friendly and durable as possible – in order to make the rental experience as frictionless as possible. Maintenance-free systems save you time and headaches.

VanCraft campervans are built with a “no compromise” attitude towards materials, which means no cheap MDF board and chinese plastics that are found in many RVs.

Both models of VanCraft’s Sprinter campervans fall below the 24′ RV size threshold, which means no annoying HOA, campground, or event size restrictions. 

VanCraft chose the Mercedes Sprinter chassis for many reasons, but chief among them was the useful life (400K+ miles) and fuel economy (20 mpg+) of the diesel drivetrain, both of which are best-in-class. 

If you’re not sold yet, just take a look at these beautifully simple and functional layouts. Nothing about a VanCraft campervan is an afterthought – from the cozy interior design elements to the off-grid systems, every component has been thoughtfully chosen and positioned with the end consumer in mind.

VanCraft Has already proved the rental model for you and worked out the kinks

Someone smart once said, “The wise learn from the mistakes of others. It’s the fool that wants to make their own mistakes.”

VanCraft Campervan Rentals has spent the last six years and 2+ million rental miles listening, learning, testing, tweaking and working towards building a perfectly balanced campervan, to serve a quickly growing consumer base. The result is a tried-and-true Sprinter campervan that is durable, functional, comfortable, and very aesthetically pleasing. 

VanCraft has decided to pull back the curtain and use internal data and industry insight to provide an investment analysis for a VanCraft Campervan.

7 Day Colorado Road Trip

Buying Your Campervan: The Terms

The below analysis is based on a brand new Short Wheelbase Sprinter campervan ($120,000 price) financed over 20 years at 5%. All things being equal, the Long Wheelbase option would have very similar returns based on the price premium and rental rate premium, which you can see for yourself using the financial model download link below.

Profit & Loss Simplified: Year-in-Review

This is a high level overview of revenues, expenses, and cash flows, based on the pro-forma analysis below. Keep in mind, these number don’t include real asset depreciation, which will be covered in a bit.

Cash flows for renting out a camper van

Profit & Loss Simplified: Year-in-Review

This is a high level overview of revenues, expenses, and cash flows, based on the pro-forma analysis below. Keep in mind, these number don’t include real asset depreciation, which will be covered in a bit.

When it comes to this type of investment, it’s important to look at the “whole picture”, rather than just the annual snapshot. You are managing a long-term depreciating rental asset (both a pro and a con), so it’s important to make sure your lifetime cash flows (asset acquisition value, asset disposal value, and net cash flows) are used to calculate the comprehensive investment returns. 

Based on VanCraft’s internal analysis, investor’s returns were found to be maximized over a three to five year holding period; therefore, the below financial analysis is structured as a five year pro forma. Before you look at the proforma, let’s talk about a few important factors that will impact investment performance – Deprecation and Taxes.

A VanCraft Campervan Is a Very Tax-Efficient Investment

By utilizing straight-line depreciation over the five year useful life of the asset, you can eliminate the majority of your income tax liability! That means less money in Uncle Sam’s pocket and more money in yours.

A Campervan is a depreciating asset – let’s talk about it.

Your campervan’s value will go down every year; there is no way around it. The good news? Your returns will more than justify depreciation. The depreciation write-off is going to save you big on your tax bill every year.

A Campervan is a depreciating asset – let’s talk about it.

Your campervan’s value will go down every year; there is no way around it. The good news? Your returns will more than justify depreciation. The depreciation write-off is going to save you big on your tax bill every year.

Tax Savings from renting a camper van

So How Do Taxes & Depreciation Impact My Income?

Your (pre-tax) income will be impacted by income tax and asset depreciation based on the accompanying adjustment schedule. This should give you a much more realistic (and conservative) projection of adjusted net returns.

Graph showing the value of the camper van over time

Based on the pro-forma analysis, your $24,000 investment is projected to turn into $82,000 over a five year period.

table showing the ROI of owning a campervan VS other rental investments

When compared to more traditional investments, Campervan rental returns show great potential.

Renting your campervan is more passive that you might think

The trade-off for higher ROI is a larger time commitment; however, at less than 10 hours per month and an effective wage of $150/hour, it’s pretty easy to justify the time investment.

how much you make per hour from renting a camper van

The 5 Year Pro Forma Analysis For an Investment in a Camper Van

The data driving this Proforma were derived from VanCraft’s ongoing rental operations, retail prices for materials, industry estimates, and industry data. This blend of data provides a unique and realistic view into the inner-workings of a small-fleet rental operation. You can download the model and adjust the drivers to create different scenerios.

Pro Forma for owning a camper van as a rental asset
Camper Van set up at night

Why doesn’t VanCraft mind encouraging competition?

The Class B rental market opportunity is bigger than you might think. With more than three million monthly visitors to the top three RV rental platforms, the market is growing faster than ever and doesn’t show any signs of slowing. With this in mind, the majority of new RV renters are choosing Class B Camper Vans over traditional RVs.  Dig into the public filings on companies like Winnebago and Thor industries, and you’ll see than Class B Campervan manufacturing numbers are skyrocketing (Winnebago FY2021 Class B unit deliveries +62% y/y), while their full size RV counterparts are losing share (Winnebago FY2021 Class C unit deliveries +11% y/y).

Furthermore, VanCraft wants to share their campervan products with as many people as possible – both directly and indirectly. Their team is not only passionate about travel, but also stoked about entreprenuership. After all, VanCraft was born out of a small garage, seven years ago, and has since grown into a thriving company with three operating segments, locations in three states, and a global reach. 

Lastly, it’s a great way to help spread the word and market their brand and product. VanCraft is primarily a manufacturing and sales company, so they just ask that you let your rental customers know about them if they’re in the market to buy an off-grid campervan. 

Are You Ready To Take The Next Step?

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Step 1

Contact VanCraft Sales

Contact Us

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Step 2

Choose Your Campervan

VanCraft’s inventory

Step 3

Get Pre-Approved For Financing & Place Deposit

Keys

Step 4

Take Delivery of Your Campervan

money

Step 5

List it & Start Making $

rent a campervan and get off grid

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Interested in making your trip a reality? Rent or Buy a campervan today.

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