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Renting Out a Static Caravan

Buying a static caravan to rent out

If you own, or are thinking of buying, a static caravan as a holiday property, it is worth considering whether you also want to rent it out when you are not staying there to bring in some extra income. There are advantages to doing so but also legal, insurance, practical and financial aspects to consider before deciding renting out your static caravan is right for you, so read our guide to help you make your mind up.

If you don’t yet own a static caravan and want to buy one as an investment, start with local research about the price you can charge for rental – competitive pricing for static caravans is hugely influenced by season and location.  Also consider the size of caravan you want to purchase – a larger one will attract more business, particularly for families in peak season, but does increase maintenance costs.

The rental income you can gain will be much lower if you, friends or family want to use the static caravan throughout peak times such as school holidays, half terms and Easter. However, you will of course save considerable costs on your own holidays if you enjoy them in your holiday lodge, rather than needing to hire one each time at premium rates.

Consider these factors and if you will be able to both enjoy your holiday home and cover your costs from renting.

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Does your park allow you to hire out your static caravan?

The first thing to check if you want to hire out your static caravan is to check your holiday park agreement to see if you can do so. Some locations allow you to hire to friends or family but not for a profit, so ensure you are able to hire out your static caravan commercially.  

Other parks may only allow you to hire out your static caravan if they manage the bookings and charge you a fee for doing so, though this does means they will help with inventories, screening tenants and maintenance.

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Renting out your static caravan successfully

If you can establish your static caravan as a popular place to hire, you can set fixed periods for hire to ensure you minimise periods when it will be left empty, and ensure other fixed periods when you can use it for your own holiday.

Options could be to offer full-week stays, or Monday to Thursday slots at a cheaper rate as well as a higher-price offer for Friday to Sunday weekend breaks, to make yourself available to a range of guests.

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Facilities for guests when renting out a static caravan

Consider the costs of providing bedding, electrical, cooking and cleaning equipment for your static caravan guests. You may also want to offer toys, games, or information about local activities, restaurants, emergency contact details etc to improve their stay – and encourage them to return.

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Laws regarding renting out your static caravan

Remember that when you are renting out your static caravan you count as a landlord for your guests, so are obliged to comply with certain regulations to protect your guests from harm.

You must have a professional gas safety check for your static caravan every year and display a ‘Landlord’s Gas Safety Certificate’ inside your holiday lodge. Similarly, your static caravan’s electrical wiring system needs to pass a test every three years to maintain a fixed electrical installation certificate.

Ensure your static caravan has a working smoke alarm which you test regularly, as well as a carbon monoxide alarm, fire extinguisher and fire blanket. Display a fire safety notice and what your guests need to do if there is an emergency.

It is also a good idea to carry out portable appliance testing (PAT) for electrical items such as TVs, DVD players, kettles and toasters to keep your guests, contents and property safe from electrical faults.

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Costs of renting out a static caravan

Some caravan parks offer maintenance and cleaning services, to ensure your holiday lodge is ready for your guests, but this does come at a cost and will therefore reduce your rental income. 

The more bookings you have, the greater your running costs will be throughout the year, so it is important to factor them into your business plan.

The more frequently you rent out your static caravan, the greater the wear and tear it may suffer.  There will also inevitably be the odd emergency to deal with, such as the boiler breaking down. Make sure you are insured for such incidents, and also that you have someone nearby to respond to them quickly.

As well as ensuring you have holiday lodge insurance, it may be sensible to have a security deposit against damages.

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Paying tax on rental static caravan income

Any rent you gain from hiring out a static caravan will count as taxable income, so you will need to inform the HMRC for self-assessment tax. See more details on the UK government website.

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Am I insured to rent out my static caravan?

If you are planning to hire out your holiday lodge for rental income, talk to your static caravan insurer to make sure you are covered for this, as it may not be included as standard.

This could help protect your static caravan and contents against accidental damage by your guests, or loss of rental income and emergency alternative accommodation for guests if it suffers insured damage that makes it uninhabitable. Check your policy documents for details.

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Static caravan insurance from Towergate

As a specialist insurer of static caravan insurance for 20 years, we’ve worked with our customers to understand what they want from their insurance. We’ve developed our product to offer a flexible approach to insurance, giving customers the ability to select additional products to meet their needs. 

Get a static caravan insurance quote online or call us on 0344 892 1413.