Understanding consignment Rates for RV Rentals: Essential Tips for Profit Sharing Agreements

Question: VentureVoyager asks:

I'm curious about the going rate for managing someone's RV rentals where the owner is completely hands-off. What's the typical profit-sharing arrangement in such cases?

Comments:

EfficientManager:

We initially agreed on a 50/50 split with the RV owners, but as our portfolio grew to over 10 vehicles and the workload increased, we renegotiated to a 60/40 split in my favor. Managing numerous rentals demands significant time and effort, and the revised terms better reflect our input and responsibilities.

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DetailOriented:

In my setup, the nightly rental revenue is split 50/50. However, I retain 100% of the fees for delivery, cleaning, and preparation. This arrangement compensates for the direct services I provide beyond just managing bookings.

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FlexibleNegotiator:

There's really no one-size-fits-all in this business. Each agreement is tailor-made. For instance, I once brokered a deal where both parties started with different expectations but eventually found common ground that suited our mutual interests. It’s all about finding a balance that makes everyone content

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RepairWise:

A 50/50 split might seem fair at first glance, but consider all the behind-the-scenes work—like repairs and customer service—which can be quite intensive. Perhaps a higher percentage would better acknowledge the extensive effort required to keep everything running smoothly

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InsuranceSavvy:

We stick to a 50/50 division too, but it’s more nuanced than it sounds. For instance, we also split the cost of insurance purchased outside the platform and account for the 3% credit card transaction fees on the owner’s share of the gross. This way, we ensure all incidental expenses are fairly distributed

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CampsiteCasey:

I remember when I first started co-hosting RVs. One of my early deals was a straightforward 50/50 split. It seemed great until I encountered my first major hiccup—a broken water heater during a peak rental period. The repair was expensive and time-consuming, and it made me realize the importance of considering all potential costs in the co-hosting agreement. This experience taught me to factor in maintenance and unexpected repairs in the negotiation phase, ensuring that my efforts and risks were adequately compensated.

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Wrap-Up: Every comment sheds light on different aspects of the co-hosting arrangement, from the importance of considering additional fees and maintenance costs to the necessity of flexible, fair negotiations. Whether you're new to RV rental management or looking to refine your existing agreements, these insights can help you establish a profitable and sustainable partnership.

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