Rental Income

Photograph of a family outside a caravan

One of the most frequently asked questions we receive deals with the amount of revenue an owner can generate from renting out or subletting their static caravan holiday home.

A large number of UK owners choose to rent their van to subsidise the cost of ownership using the income to help towards costs such as site fees and insurance. Very few owners in the UK buy static caravans to make a profit.

This is a very difficult question to answer as the amount of rental income you will generate depends on a number of criteria unique to each different owner.

A key issue that will determine the amount of rental income will be related to the time you, family and friends wish to use your static caravan holiday home. For example those who wish to use their static during peak season holidays such as Easter, Summer School Holidays and October half term will derive much less rental income than those who sublet for these periods. They however may be making substantial savings on the cost of their holidays compared to renting directly for the holiday park at normal rates.

Before purchasing a static caravan holiday home a buyer should be clear on their priorities of lifestyle benefits verse cost of ownership.

Purchase Price & Specification

Initial purchase cost is a key factor when considering the role of rental income in your ownership plan.

Obviously a larger the static caravan e.g. 6 berth rather than 4 berth will have a higher purchase price but will offer larger rental incomes. The same is true when it comes to specification of the static caravan.

Always remember to include finance payments in your calculations if you are purchasing the static caravan on credit.

Marketing, Reservations & Maintenance

It is also important to consider how you intend to market your static caravan and deal with maintenance and cleaning requirements.

If you rent out your static caravan you will also need to ensure all legal requirements for subletting are fulfilled e.g. annual gas testing.

Many larger parks will offer inclusive rental schemes that will take care of bookings and maintenance requirements. These programmes offer convenience and time saving but will reduce actual income as a result of the commission or fees charged.

Some owners choose to coordinate such arrangements themselves to save money, excepting that they will have to invest time into dealing marketing, bookings, sub contractors or even completing cleaning themselves if they live locally.

Whilst increased rental time will in turn increase rental revenue it is also important to consider wear and tear costs on your static caravan. We have received feedback from owners that have reported that some people on holiday do not treat the static caravan with the same respect as the owner and have suffered increased maintenance bills and the stress of having damage to their much loved holiday home. Remember if you do not handle the bookings yourself you have no control over who uses your holiday home. It is generally considered that increased rental time will increase annual running costs due to higher maintenance costs and this should be considered in your calculations.

To help you understand the differences in usage and the resulting rental income we have compiled the following 3 example case studies...

User 1 – Young Family of 4:

  • Purchased a new luxury specification 6 berth static caravan
  • Use Static Caravan in all peak season school holidays
  • Lend to friends & family for 6 weeks per year
  • Rent out sporadically off season to private individuals
  • Have maintenance and rental contract via the holiday park group

Income from renting: Low

User 2 – Retired Couple

  • Purchased a 3 year old 6 berth standard specification static caravans • Have a 2 week holiday with family & grandchildren in peak season
  • Have numerous off season mid week short breaks
  • Rent for remaining time
  • Have maintenance and rental contract via the holiday park group

Income from renting: Medium

User 3 – Young Professional Couple

  • Purchased a new 6 berth standard specification static caravan
  • Rent static caravan throughout the off & peak season
  • Only use for occasional weekends off season when visiting friends in the area only if no previous bookings are made
  • Coordinate cleaning, maintenance, contractors directly
  • Coordinate bookings via a website they had built

Income from renting: High

This page is for information purposed only. Take legal advice before purchasing.