Letting or renting out a static caravan can be a fantastic way to make extra money. It’s what many people call ‘passive income’, which means that, by merely providing a service, you can generate money without having to lift a finger. Of course, letting out or renting a caravan will mean that you need to ensure your home is of a liveable standard. What’s more, there is more than a little paperwork you are going to need to consider for a long term static caravan rental.
With that in mind, here is our complete beginner’s guide to long term static caravan rental. If you’ve already invested in a static caravan at a fabulous park of your choice, it’s time to start looking into making money from it. At the same time, you’ll be providing fantastic holiday opportunities to thousands of people travelling up and down the UK.
Let’s assume, therefore, that you are right at the start of the process. If you haven’t yet found the right caravan to let, there are going to be a few things on your checklist which you will need to prioritise.
For example, you’re going to need to set yourself a healthy budget. Static caravans can vary in terms of upfront cost, which means it makes sense to set yourself a wide financial boundary.
Do also consider the following while shopping around:
Never be afraid to inspect a static caravan thoroughly. This should be especially important if you are buying second-hand. Buying new, while likely more expensive, should carry less risk. The choice is always yours.
As you can see from the wide array of parks we list for at SellMyGroup, there are many different UK sites you can install your caravan at. You, ultimately, get to choose the most convenient spot. You may wish to set up your static home somewhere close to your own property. However, if there is a specific corner of the country you’d particularly like to come back to, it makes sense to play to your interests. After all, when your caravan is not being rented, you can always use it as your own holiday home!
Do always make sure that a park is willing to allow for static home lets. Many park operators will have rules and regulations which you need to follow, and you are going to need to adhere to certain fees and insurance requirements. It is crucial; however, you make sure your ideal park will let you rent before you arrive.
You should also look carefully at the facilities on-site. Just because a park is based in a favoured area, doesn’t mean its amenities are likely to be 100% convenient for you or any potential tenants. Look for on-site security, shared facilities and local attractions. Consider, too, the noise pollution and light pollution in the local area. Is the park likely to be a good vantage point for people who want to explore the wider area?
Before you consider anything else, do make sure that your caravan is covered by a thorough insurance policy. Not all basic caravan insurance carriers will cover you for letting. Therefore, it will be worth comparing and contrasting with other firms.
You should also think about setting up public liability insurance, too. This means that you will be fully protected against anything untoward which occurs on your property. For instance, these policies will ensure that you are protected against tenant injury, or even worse. It may not bear thinking about, but it is a small price to pay for your protection.
Always remember that you will be responsible for fixing problems and upgrading services. As a landlord, you will owe a duty of care to anyone who stays in your property. This is why investing in insurance coverage is so crucial.
By letting out a static caravan, there are several legal requirements you will need to adhere to. You will be operating as a landlord, which means that you will be personally and legally responsible for safety provisions.
Do make sure to plan ahead when you wish to use your static caravan for you and your family, if at all. Planning will let you clearly lay out when you want bookings to cease, and when you’d like them to start up again.
It may be tempting to reserve yourself a block of time in the spring and summer; however, this is likely when you will see the most trade. Be willing to reserve yourself a week or two in peak season, but just be wary that it will eat into your potential profits. To protect these, consider staying in your caravan during the off-season.
It’s a good idea to make sure that your caravan is well-stocked and liveable before you start letting! Consider providing bedding, tea and coffee, soap, towels and other useful items. Think of items and facilities most people expect from holiday homes when they first arrive!
Do also make sure that, if you have a TV installed, your property is covered by a license. Otherwise, you will be breaking the law, and you may face large fines. Check your home can benefit from Wi-Fi, too. Home internet is now a standard that most people expect! Some parks may provide internet to residents as standard, so again, make sure you check in plenty of time.
Consider who is going to clean and prepare your property for the next visitor, too! Establish clear rules for checking in and checking out, as well as those which you expect throughout a tenant’s stay. You want to ensure your home is always ready for the next person to enjoy.
Once you are legally set up and ready to let, it is time to start managing your bookings. While it is tempting to manage your bookings on your own, why not let a park management agent handle the finer points of administration for you?
Before you set up bookings, you should, of course, set reasonable rates. Consider factors which are likely to impact on the amount you can charge for rental. For example, bigger caravans will generally charge more per guest. What’s more, the condition of your static home and the facilities available will influence your rates.
It makes sense to research your market. Consider what similar caravans are being let for in your region. Consult a park agent or lettings agency, too. They will be able to help you fine-tune the right charges for long-term static caravan rental.
Do also bear in mind how much running your caravan will cost you from month to month. Don’t undercut yourself. You want to be able to make a profit, but at the same time, you don’t want people to turn their noses up – or take advantage, either.
You’re also going to need to file self-assessment tax returns with HM Revenue and Customs for any money you make from rental during a tax year. However, you may be eligible for reliefs and waivers on applicable tax, so make sure to discuss your case with a financial advisor.
The final and most crucial step of long-term static caravan rental is, of course, advertising it to potential tenants. But where do you begin?
Start by taking plenty of photos – ones which honestly depict the facilities and location of your static home. Beyond this, make sure to take down an itinerary of everything that comes included. When people look for caravans and homes to rent, they want to know as much detail as possible. It will save them from asking awkward questions later on!
It’s important to lead with an experienced name in caravan letting and sales. SellMyGroup can help you advertise your holiday rental through your chosen park. You will have access to thousands of eager visitors and engaged holidaymakers. Advertising your static home doesn’t have to be difficult – but why not ask for help?
Ultimately, long term static caravan rental is a great way to earn money on a passive basis. However, do be aware that there are plenty of legal points and pieces of paperwork you will need to navigate before you get set up! Take a look at the fantastic parks available to you across the UK, and choose a pitch where you can look forward to welcoming visitors again and again, year after year. For further reading, see our article on ‘What to Remember When Buying a Holiday Home’.