Planning to Rent Out Your Motorhome to Create an Income Stream

Like increasing numbers of motorhome owners, renting out your RV when you’re not using it may be a clever way to generate income from your investment. The rental profits you gain can offset your asset's depreciation, contribute to your travel fund, pay for upgrades and even become a substantial source of passive income.

Capitalise on the demand for unique travel experiences by offering your motorhome as a mobile Airbnb through a peer-to-peer (P2P) rental platform. You’ll attract both domestic and international adventurers — and help increase occupancy.

In this blog, we discuss planning your motorhome rental business, choosing a rental rate, taking a test vacation and drawing up a rental agreement.

To turn your motorhome into a profitable venture, you have to set yourself up for business — which requires careful planning. We've created a step-by-step guide to help you plan how to hire out your motorhome.

Step 1: Take time to plan your P2P rental business

With its wealth of scenic campsites, New Zealand is recognised as one of the countries best suited to motorhome travel. It’s an ideal place to buy a motorhome and enjoy it when you want — then rent it out when you don’t.

Understanding the NZ motorhome rental market

To maximise your earnings potential, it's important to understand the dynamics of New Zealand’s motorhome rental market and tailor your offering to meet demand.

A growing opportunity

Demand for motorhome rentals in New Zealand is on the rise. According to the Ministry of Business, Innovation and Employment (MBIE):

• International visitor arrivals recently increased by 858 percent to over two million people compared to the year ending March 2022 — a strong rebound after the huge drop in tourism during Covid
  
  

• Total tourism spending hit $37 billion for the year ending March 2023 — a 39 percent increase from the previous 12 months.

This sharp rebound in tourism presents a strong opportunity for motorhome owners. But who’s driving this growth?

Your potential customers

Motorhome holidays in New Zealand appeal to a diverse demographic, from solo adventurers to couples and partners to groups of friends to families. These prospective customers vary in travelling styles — meaning that some:

• Seek fully equipped luxury RVs with all the bells and whistles
  
  

• Want sufficient comfort for a long holiday without paying top-dollar
  
  

• Need basic campervans to stick to their tight budgets on short road trips.

International RV renters are drawn to New Zealand’s outdoors — its impressive landscapes, relative isolation and reputation for adventure activities. They want the freedom and flexibility to explore remote areas.

International versus domestic customers

New Zealand has traditionally seen international tourists hire motorhomes and campervans from the local market. Visitors from Australia, Europe and North America are the main holidaymakers — ensuring that a large portion of the RV rental market is related to international tourism.

Domestic tourism by motorhome is also vital as New Zealanders increasingly choose to explore their own country in a recreational vehicle.

Rental durations for domestic and international travellers can vary significantly — from short weekend getaways to multi-week or even multi-month long road trips. However, local NZ hirers will be more likely to take shorter trips, while those travelling from far afield, like Europe, are more inclined to rent for weeks or months.

Seasonality

Seasonality plays a part as the proportion of domestic versus international renters can shift. For instance, international tourists typically rent more motorhomes during the peak summer period when prices are generally higher.

Kiwis rent a greater proportion of RV rentals in the winter off-peak months when prices are usually lower.

Seasonality can also vary by New Zealand region. For example, the Queenstown and Wānaka winter ski season sees an influx of Australian tourists who may be looking at hiring recreational vehicles.

It’s also important to be aware of school holidays when there can be spikes in demand.

The market dynamics of demand and supply

The New Zealand motorhome rental market features a variety of customer segments — each with unique needs and expectations. Understanding these segments and the current supply landscape is crucial for developing a successful rental strategy.

Demand in the NZ motorhome rental market can be segmented into:

• High-end — customers who are willing to pay for the comfort and convenience of a premium motorhome with luxurious amenities, often for extended trips
  
  

• Mid-range — families and couples wanting a balance between comfort and affordability for longer road journeys
  
  

• Budget — generally younger travellers and those seeking basic, budget-friendly campervans for shorter road trips
  
  

• Niche — customers with specific interests who want an RV geared up for things like surfing, pets or travelling off-road.

The New Zealand motorhome rental supply landscape features:

• Major rental companies — that dominate the market by providing fleets of standardised motorhomes
  
  

• Minor rental operators — with smaller fleets and sometimes offering niche recreational vehicles in regional areas
  
  

• P2P rentals — where individual motorhome owners connect with renters to hire out unique RVs and personalised experiences at more accessible price points, potentially from any location.

P2P rentals fill a specific niche by offering a level of variety and personalisation that major hire companies simply can't match.

Individual motorhomes often have unique layouts, designs and customisations. Owners can share their local knowledge, offer itineraries and provide tailored services. It’s about offering individuality, flexibility and a personal touch that enhances your overall travel experience.

The P2P platform can also fill a supply gap during peak seasons when some major rental operators are fully booked.

Understanding the market dynamics of demand and supply is the foundation for deciding who to target.

Determining your target market

Knowing who your target audience is will guide you in choosing the right channels to reach them effectively. Take steps to:

• Analyse demand — research your region’s current tourism trends and rental demand to determine whether specific seasons or events attract certain types of renters
  
  

• Understand your ideal renter — consider aspects such as age, group size, budget and travel style, and decide whether you’re targeting families, couples or individuals, as each has different preferences and needs
  
  

• Identify a niche market—perhaps your RV is built for off-grid travel, set up to be pet-friendly, or equipped with high-end furnishings and appliances to attract luxury-seeking travellers.

Your motorhome’s features and amenities should align with the needs of your chosen target market. For instance, if you intend to rent your RV to families with children, it will need multiple beds and a spacious living area — possibly with entertainment options like a TV or onboard WiFi.

Your obligations as a rental owner

Renting out your motorhome comes with responsibilities beyond providing the vehicle, such as the specific legal requirements you have to meet.

As a motorhome rental operator, you must comply with the Land Transport Rule: Operator Licensing 2017. The most important aspects of this law involve:

• Keeping a register — maintain a record of your motorhome and the people who rent it
  
  

• Written agreements — use a signed, written rental agreement and provide a copy to your renter
  
  

• Agreement explanations — be able to explain the agreement to the renter if they have any questions
  
  

• Driver licence verification — ensure all drivers have a valid driver license for driving your type of recreational vehicle
  
  

• Offering insurance — you have to offer insurance coverage to the hirer for the rental period.

Besides what you’re legally accountable for, there are other key responsibilities you need to know about when renting out your motorhome, which include:

• Meeting the Consumer Guarantees Act — your RV has to be maintained in good working order, accurately represented in advertising and repaired promptly

• Ensuring your motorhome is prepared well — with a full fresh water tank and empty grey and waste water tanks, a charged house battery and an adequate supply of LPG

• Highlighting any on-road resources about how everything works — including troubleshooting tips, step-by-step system operations guides and emergency contacts

• Complying with New Zealand privacy laws — for collecting and storing renter information

• Conducting a comprehensive handover to familiarise the renter with operating your motorhome — to explain safety features, emergency procedures, driving instructions and how systems and appliances work.

To help you meet these obligations as a P2P rental owner, it’s important to carefully create procedures for maintenance, security, insurance, rental agreements, handovers and drop-offs.

By establishing these robust procedures, you'll ensure compliance and create a smooth and professional rental operation — enhancing customer satisfaction and building trust in your business.

Step 2: Work out your daily rental rate

Setting a competitive daily rate of hire is essential for attracting renters and ensuring your recreational vehicle generates enough consistent income.

How much you earn from your P2P rental motorhome will depend on your daily rental rate multiplied by the number of occupancy days. For example, if you choose a flat rental rate of $200 a day and hire out your motorhome for 50 days over the year, you’ll generate $10,000 of revenue.

Finding the right price

Pricing your motorhome competitively is crucial for attracting renters and maximising your return on investment. To help decide on a pricing strategy to fit your target market:

• Look at seasonal demand fluctuations — depending on your region, summer may be overloaded with sun-seeking beach tourists, or winter could attract those looking for the freshest snow
  
  

• Think about regional price differences — touristy areas like Queenstown may push prices up if demand isn’t sufficient, whereas it can be hard to hire out your campervan from an isolated area like the East Cape
  
  

• Check online third-party platforms — to see the going rates for similar model RVs.

Deciding what rates to charge depends heavily on the recreational vehicle you’re offering.

Campervans and motorhomes aren’t the same — a campervan is usually a converted van modified to include amenities for living. A motorhome is a recreational vehicle with a habitation unit built on a truck chassis.

Rates for renting out a campervan

Determining a competitive daily rental rate for your campervan requires careful consideration of its age, condition and features.

Older, partially equipped campervans at the lower end of the market rent for as little as $50 per day. In contrast, modern, well-equipped models can command significantly higher prices — especially during peak season.

Factors that influence daily rental rates for modern campervans include:

• Age — for instance, newer models in great condition can usually demand higher rates
  
  

• Amenities — features like solar panels and a modern entertainment system can increase the campervan’s rental value
  
  

• Seasonality — peak season demand, such as during summer, allows for higher rates, while off-peak rates tend to be lower
  
  

• Location — popular tourist destinations may support higher rental prices.

It's important to research current market rates from reputable rental companies and P2P platforms to establish a competitive price point. Even basic campervan rentals can exceed $200 per day outside the peak season, highlighting the need for accurate market research.

Find out about campervans available in New Zealand.

Rates for hiring out a motorhome 

Compact motorhome models less than seven metres long occupy the middle ground in the RV rental market in New Zealand. Compared to campervans, they offer:

• More internal space — to move about and relax
  
  

• Fully-equipped kitchens — with fridge-freezers, gas hobs and even ovens
  
  

• Bathroom facilities — often with a wet space to shower and dry space for the toilet, basin and shelving.

Besides length, the factors that have the largest impact on what rate you can charge are your motorhome’s age and how highly specced it is. Then, the season has the biggest bearing on daily rental prices — with a significant difference between peak and off-peak.

Estimating the daily rental rate you may be able to charge during high and low seasons is challenging because there are so many variables. During off-peak times like winter, rental rates for a mid-range or high-end motorhome hire may range from $100 to $250 per day.

Peak season throughout the summer months will see daily rental rates climb, and you may be able to charge between $250 and $500 or more.

At the top of the rental RV market are larger six berth motorhomes and spacious integrated models imported from Europe that accommodate four or more people. At seven to eight metres long, these motorhomes could exceed $500 a day during peak season.

Their size, number of beds and available seatbelts make them popular with families wanting to tour New Zealand in a sufficiently large RV.

Learn more about motorhomes available in NZ.

Step 3: Take your RV on a test vacation

After purchasing your chosen rental motorhome and kitting it out, take it for a holiday before listing it. Aim to spend at least a week away to get an idea of what potential experiences your future customers may have.

Observe anything that annoys or frustrates you, and look for ways to fix those issues before renting out your motorhome. Also, take note of how you may be able to enhance the rental experience, such as:

• Refining which storage areas are best for certain items
  
  

• Figuring out the best places to put adjustable lights for different needs and situations
  
  

• Listening for any rattling sounds that can be annoying while driving.

Step 4: Draw up a comprehensive rental agreement

A crucial part of preparing your motorhome for hire is defining what’s acceptable and what isn’t. This is when a clear and comprehensive rental agreement is paramount.

How to create your rental agreement

Prioritise using templates from organisations with motorhome rental experience, as they are most knowledgeable about the risks involved. However, once drafted, it may be wise to have your rental agreement checked by a lawyer.

New Zealand Rental Vehicle Association

The Rental Vehicle Association (RVA) provides standardised rental agreement templates specifically designed for the NZ rental vehicle industry. These templates can provide a solid foundation for your hire contract and cover essential clauses and legal requirements.

Becoming an RVA member grants you access to their comprehensive rental agreement template and provides other benefits designed to support rental operators.

P2P rental platforms

P2P hire organisations like Camplify offer terms and conditions that govern the rental process — including insurance, liability and cancellation policies.

While these terms provide a framework, it’s important to create your own comprehensive rental agreement to cover all specific details. Consider combining a robust rental agreement template such as that offered by the RVA with some terms and conditions from various platforms like Camplify and Quirky Campers.

Understanding rental terms and conditions is also important before drafting your agreement.

The renter’s responsibilities

Clearly outline the hirer’s obligations towards your motorhome concerning cleaning and damage — and set clear conditions for use. For instance, you could specify that your renter must:

• Only drive on sealed roads and campground accessways
  
  

• Maintain a smoke and pet-free environment inside your motorhome
  
  

• Promptly report any mechanical issues or damage immediately to ensure timely repairs
  
  

• Refuel the gas tank and LPG bottle — and dispose of all waste appropriately.

Effective communication is one of the keys to renting successfully. After clearly outlining these expectations, you need to communicate the value of your motorhome to potential renters.

It’s never too late to begin your motorhome ownership journey — with an eye towards renting it out. Find out all about the costs of buying and owning a motorhome.