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How have you forecasted expenses (and income)?

crixlet
Day-tripper

I'm about to get into hosting, and am looking to do some projections on costs associated with RV rental for our Ford Transit camper van.

I've done some research on my local market to assess the average rental price, # of reviews, etc, so I have a ballpark idea of what to charge.

I'm wondering if anyone has a spreadsheet or a list of common expenses that they can share with me for running their RV business.  Insurance, cleaning supplies, maintenance, etc. 

2 REPLIES 2

Dave-n-Kitty
Weekend warrior

This is by no means an exhaustive list. I won't include MY numbers since your camper is a different type than mine:

  • Annual registration
  • Annual insurance
  • Monthly payment
  • Parking/storage
  • Cleaning supplies
  • Wear out parts (locks, handles, keys, fasteners)
  • Sinking fund (roof, carpet, appliances, tires,lube)
  • Preventative maintenance
  • Laundry
  • Pre/Post Season deep clean
  • Tow vehicle maintenance
  • Exterior cleaning
  • Propane?
  • Sundries - disposable plates/flatware/toilet paper/paper towels/red Solo cups...

 

greatadventures
Day-tripper III

Since you have a drivable, the BIGGEST expense you have to deal with is one that SOOOOOO many people don't even think about, and that is depreciation.  This business is a fight against depreciation.  You need to calculate for your specific vehicle your cost per mile driven so that you understand how much you need to make just to overcome the cost to operate.  Use the NADA Guides to calculate how age and mileage affect your vehicle's value.  For example, on our two Class Cs (one Winnebago and one Forest River, both on Ford platforms), NADA assumes a base annual mileage of 10,000 miles.  So, whether it's driven or not, your value is going to go down every year, and as long as you only drive 10,000 miles, the value won't drop more than the standard annual depreciation.  BUT, if you drive OVER 10,000 miles a year (which you WILL if you're renting aggressively - we do about 25,000/year), your value is going to go down quicker.  We've calculated that we average $0.14 of value reduction for every mile driven over 10,000 miles/year, based on NADA guides.  That's SUBSTANTIAL. This is why it's ABSURD to me when owners only charge $0.25/mile for mileage overages - after you factor in maintenance costs, etc., they're literally losing money, but because they're not thinking about depreciation or including that in their calculations, they still think they're making money.  It won't be until it comes time to sell and they lose their shorts that they realize they were being foolish.  All of our financial projections include realistic depreciation figures, based on actual numbers for our specific model, pulled from NADA.  Please do not skip this step.  It's the difference between a profitable business and massive losses, and I hear very few people raising the issue or including it in the discussion of business expenses.  P.S., this is not really an issue for towables.  But for drivables, it's critical.