1.) Depreciation - Most of our owners use a 5 year depreciation schedule for income tax purposes. Many can take 52% depriciation during the first 2 years alone.
2.) Expenses - You'll be able to deduct insurance premiums, maintenance costs, extended warranty costs and any upgrades you might want performed to your motorhome. These items become business expenses.
3.) In some states you may be reimbursed for any Sales and Use tax you paid when you bought the RV. This is because renters pay transaction privilage tax on the rental.
How much money can my RV make?
The amount of income your RV generates from consignment depends on many factors. Based on the Size, floorplan, and number of beds, owners can make
as much as $20,000.00 per year off the rental of their RV. In addition to the income, there are many tax benefits to our program. We make no guarantee as to how much money our owners will earn, but remember this.. We dont make any money unless your making money.. So... We are going to do everything possible to generate revenue for you.
What about damage to my RV?
Hands down, this is the single biggest concern of RV owners. The long and the short of it is that the renter is legally on the hook for almost everything. The only exceptions are the normal wear items. Each renter is screened extensively. When we gather extensive information on potential renters, enter the information into our computer, and get answers to over 30 questions and record them, such as home and
work address, home and work phone numbers, social security number, driver's license number, auto insurance company, agent and policy number plus many more. When we take the reservation, we complete background checks of the potential renters credit
and driving record.
Delivering the RV: We conduct an extensive walk-through on the coach with the renter and use an extensive check list to ensure all systems and operability are covered. The renter must sign the Operating Instructions Sheet. In addition, we take several digital pictures of each unit just before it goes out. This precludes renters from coming back later and saying damage was pre-existing, or that something broke or got damaged was because we didn't tell them how to operate it. In addition, each renter is required to read and sign our Terms and Conditions. These terms and conditions were written to protect the RV, the owner of the RV and Paul's SE Arizona RV Rentals LLC. They clearly spell out what the renter is responsible for and the penalties involved if they don't adhere to them.
Every RV is clean, full of fuel (gas and propane) and water as well as extensively inspected before releasing it to the renter. The renter signs acknowledging that the RV is in good condition
and that they agree to return it full of fuel and clean. If they fail to do so, we clean it and or fuel it up and charge the renter accordingly.
Our Check In form clearly states that we have 10
days to inspect the unit before refunding the renters damage deposit. This gives us enough time to check the unit carefully for any hidden damages.
Of course these things are of no use if we can't collect from the renter if damage does occur. To make certain we will be able to collect, each renter must pay for the rental in advance plus leave a Damage Deposit. The renter also signs the contract authorizing us to charge any balance due on their credit card. With this credit card authorization, the customer can't successfully dispute our charges to their credit card company.
How about insurance?
When you enter your coach into our program, we must add it to our master insurance policy. You can drop your current insurance because our policy covers you, your coach, the renter and us. We keep a copy of the master policy on hand atall times and welcome our coach owners to go over it or speak with our insurance company to answer any questions they might
have. As a rule, our coverage is considerably better than an individual policy. The renter is responsible for the deductible (maximum deductible is $500).
The cost of commercial insurance depends on the value of the coach and whether it's a motor home or a travel trailer. The rates are slightly higher than an individual policy but the broader coverage is essential. Your individual policy won't cover you
or the coach if the unit is for hire. And most importantly your individual policy wont cover "Conversion" (basically theft) if it were to occur. The cost of commercial insurance premiums are deducted from your rental income each month and are accounted for on the Owners financial Statement which we provide quarterly.
Can I use my coach when I want to?
YES! It's quite simple. When you know you want to use the coach, call us and we'll reserve it for you just as though you were a renter. Better yet if your flying in from out of town, we will deliver it to you at the Tucson Airport. When you pick it up, it will be full of fuel, water and propane. We'll light the refrigerator and water heater for you and check all the appliances, generator,etc. All we ask is that you return it full of fuel, propane and cleaned so that it's ready to go out on the next rental.
If we have a reservation on your coach for the period you want to use it, we'll either move the renter to another unit, or offer you one of our other coaches (at a huge discount) or cancel the reservation. The choice will be yours and you always have the final authority.
What about Maintenance?
Quite simply, were sticklers about maintenance. In most cases, our maintenance procedures/intervals are far more strict than the average RV owner's. When a motor home enters our program, we enter maintenance data into our computer. For each category of maintenance, we enter how often we want to
perform the maintenance task on your RV. We also are required to date and mileage that the task was last performed so the software can track how many miles are put on the RV. Each time a renter picks up the RV, we record the actual mileage and the generator hours, as well as tire guage depth. When they return, we again record these items . When the unit has
3,000 miles since last oil change, 20,000 miles since last transmission service, 100-150 hours of generator use, or 9000 miles since last tire rotation the computer automatically prompts us to let us know it's time to service the RV. When prompted, we will change the oil & filter, check the transmission fluid, radiator coolant, brake fluid, batteries and tires for proper wear. We also track such items as Fuel Filter Replacement, Anti Free/Coolant replacement, and windshield wiper blade replacement.
Are renters allowed to smoke in my coach?
No! We don't allow smoking in any of our rental units. There is far too much risk that the upholstery or carpet could be damaged and many people are sensitive to the smell of smoke. Not to mention the possibility of fire. Every renter must sign the contract that clearly states that there is no smoking allowed in the coach. If they choose to ignore this rule, they will forfeit their entire security damage
deposit and the coach can be fumigated and professionally cleaned to remove the after-effects from the smoke. This charge is purposely high to
so as to deter even the most stubborn smoker from doing something stupid.
Who is allowed to drive my coach?
Only the renter and those persons designated at the time the reservation is taken. Each designated driver (mimimum age 25) will be required to give us their full name, address, date of birth, drivers license number & state and expiration date. We then verify the licenses are valid prior to departure. The primary renter understands that they're the responsible party and will be charged for any
damage or repairs due to negligence.
What happens if the coach breaks down during rental?
The renter is told that they can repair anything that breaks up to a limit of $50, however they must provide a receipt for reimbursement. If the repair is for more than $50.00, they MUST follow the explicit instructions contained in the manual we provide them, and if the coach does not contain an extended warranty, they must call us for approval and instructions. Our Terms and Conditions clearly spell out the procedures that must be followed and our limits of liability. Our liability is limited
to the reimbursement of necessary repairs not caused through the negligence of the renter and does not include any other expenses the renter might incur. Our contract specifically states that operational failure of such things as the refrigerator, generator, air conditioner, etc. do not constitute a breakdown and no reimbursement will be
forthcoming. Also, we've contracted with a national road service company. They provide 24 hour/7 day per week assistance to the renter.
Once the unit has been repaired and returned to us, we will make the determination as to whether the breakdown was due to mechanical failure or negligence on the part of the renter. If we determine it was due to negligence or misuse, we will charge the renter for the repair. If it's simply a mechanical failure of a part not covered by an extended warranty, you the owner will be charged for the repair as part of normal maintenance.
What if my RV doesn't rent?
How often your unit rents depends largely on what it is. Smaller travel trailers rent well for weekends, Holidays, and extended vacations. Motor homes and tent campers are by far the most sought after rentals. Due to the great year round climate in Arizona, demand is far greater than our supply. We
expect averages between 10 and 21 days of rental per month (depending on season and RV Type). While we can't guarantee the number of rentals your unit will
have, we are located in an excellent market where rentals occur 365 days per year. At some point we will limit the number of RV's in our fleet. We
are committed to our coach owners and will not allow our supply to dilute owners income.
How and when do I get paid?
Owners revenue checks are mailed on about the 15th of every month. Owners are paid for
all rentals that returned and closed out during the previous month. The computer software generates owners statements which consists of pages that indicat the charges or credits for that month, the renters names, dates, miles driven, generator hours and of course the total amount due the owner. Although we send payments monthly for revenues earned, accounting statements are mailed quartely along with invoices for services rendered.
LISTING YOUR RV WITH US
If you're interested about including your RV in our rental fleet and joining other satisfied owners
who have realized the financial benefits of consigning their recreational vehicles to S.E AZ R.V. Rentals
RV Consignment Program, e-mail us or telephone Southeast Arizona Rv Rentals at: 1-888-459-4621, or 520-459-4628.
Copyright © 2008 Southeast Arizona RV Rentals All rights reserved.
Revised: July 30 2008
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