What is RV Consignment?
Consignment is the process of hiring someone else to sell or rent out your RV for you. If you use an RV consigner to sell your RV, you'll likely pay an upfront fee. The fee may be a percentage of the RV sales price or a flat rate. Rental consignments are a little different whereas the fee is usually a percentage of the rental price charged to a renter.
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With RV rental consignments there are three parties involve in a transaction, the Owner of the RV, the RV Rental company (or manager), and the renter (person using the RV). The owner and manager will enter into a contract that allows the manager to market and rent the RV to potential renters. For this service, the manager will keep a portion of the rental amount and forward the balance of the amounts to the Owner.
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Why Consignment?
Most owners that enter into rental consignment contract want to earn money from their RV while it is not in use,. while retaining the right to use the RV for personal use. This money can be used to pay for storage fees, insurance, or loan payments. It is possible to earn enough money to to cover all the expenses and turn a profit.
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Each RV consignment contract is personalized to the individual owner. The contract will spell out the commission rate, storage options, insurance options, and maintenance, inspection, and repairs. As the owner of the RV you will have a say in where the RV can go and what restrictions you would like on the renters. You can also specify how the RV is to held in storage when not being rented (open lot, covered, garaged) and who is authorized to perform maintenance.
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What is the payout structure?
The payout structure can vary depending on the number of services the manager is providing. The typical structure is that the nightly rental rate is split 50/50. Extra fees that are associated with maintenance and wear and tear would go to the owner. Fees that are associated with the business of renting the RV would go to the Manager.
Example: A customer rents the RV for 1 week at a weekly rate of $1,800. Additionally there is a mandatory cleaning fee of $200, so the renter will be paying $2000 + Tax and insurance. The RV is returned and there are extra charges for excess miles driven ($75) and excess generator hours ($30). The renter also fails to refuel the RV ($100 charge) and refill the propane tanks ($40 charge). In all, the Renter pays the manager $2,245. In this example The owner would receive $900 rent, $75 extra miles, and $30 excess generator hours totaling $1005. The Manager would receive $900 rent, $200 for cleaning, $100 for refueling, and $40 for refilling the propane totaling $1240.
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Why choose North Alabama RV as my consignment Manager?
Flexibility, Experience, and Trust.
We are owners too. We treat every RV as if it were our own and give them the same care and upkeep we give our personal units. Being a small business and not associated with any national chain gives us the flexibility to work with each owner to find a comfort level the owner can live with. All our contracts are customizable and each RV will have it own set of rules based on the owner's wishes. In addition to our our marketing and promotions, we list with other marketing platforms to bring in the most rental inquiries possible. During major events and holidays, all our units are engaged and earning money for their owners. We equip each RV with a GPS so we always know where they are and how fast they are travelling.
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We have all 5-STAR ratings on every platform for every unit.
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Questions?
This is a very simple explanation of RV consignment and I sure you have more questions. If you are interested in making money with your RV, simply call, text or email me and we'll figure out together if RV consignment is a good option for you.
256-694-6772