Renting your static caravan as a holiday home

If you are the owner of a static caravan, as much as you’d like to visit your holiday home as often as possible, there will be times when it’s just not feasible to do so.

You may have thought about what to do with your static caravan when you’re not there enjoying it. Perhaps you already let friends and family stay there during periods it would otherwise be left unattended, and are happy sticking to that arrangement.

On the other hand, with staycations on the rise, now could be the perfect time to generate some passive income from your static caravan. If you want to begin renting out your static caravan as a holiday home, here’s what you need to know.

Get permission from the caravan park site owner before renting

Before making any decisions on renting your caravan out, you’ll need to check it is permitted by the site owner. While you own the caravan, each park will have different rules and regulations relating to lettings.

Some holiday parks can manage the entire rental on your behalf for a fee. This does take a lot of pressure off, as they will look after promotion, bookings, and insurance for you, but their commission can eat into profits.

But if you choose to rent out your static caravan independently, not only do you have the potential to pocket a bit more of the cash, you’ll also have more flexibility and control when it comes to making other decisions.

How much can you charge to rent out your static caravan?

Deciding how much to rent out your static caravan for will depend on a number of factors.

Renting during the peak season, especially during the summer holidays, bank holidays, and Easter break, will mean you can charge a premium. Out of season and weekdays, less so. You’ll likely need to adjust the cost of renting out your static caravan based on seasonality rather than having one set price all year long.

Location is important. Many people will be looking for a seaside getaway with their family, or will use the caravan park as a base while exploring local attractions, so bear this in mind and look at not just what other caravan owners on your park are charging, but also nearby caravan parks, local hotels, B&Bs, and private holiday home rentals.

Another thing to consider is how much other static caravans on your park are being let out for. If your caravan is newer, or has better facilities than other available properties, you might be able to increase the cost a little, as long as you can justify it to potential guests.

You will also need to factor in the cost of utilities when renting out your caravan, such as electricity and gas.

Finally, you may need to increase or decrease the cost of renting out your caravan based on when facilities at the park are available or likely to be in use. This includes things like swimming pools, golf, and other outdoor leisure activities.

Paying tax on your static caravan rental

Renting out a static caravan means that you will be generating an extra income. And unfortunately, that most likely means you will need to pay tax.

You must inform HMRC when you start renting out your caravan when certain thresholds are met to ensure you are being taxed correctly. The good news is that some of your business expenses may be tax deductible.

If you’re not sure if you need to pay tax, or want to know how much tax you’ll need to pay, it’s a good idea to speak with a tax consultant.

Promoting your static caravan as a holiday rental

When promoting your static caravan, don’t scrimp on the details.

Think about who the park is best suited to. If it’s a park on the luxury end of the scale that caters towards an older demographic, would a family with young children enjoy staying there?

Take time to write a listing that really sells your caravan and its location. Beyond providing the basics such as the number of bedrooms, include details such as the appliances and other features of your caravan that make it stand out, as well as the park facilities, the local area, and the distance to tourist attractions.

Take photographs of both the interior and exterior (the latter preferably when the sun is shining)! Make an effort to tidy up before taking photos, and perhaps consider a video walkthrough of the caravan to give people a better idea of the space and facilities on offer.

There are plenty of sites where you can advertise your static caravan for free. Facebook Groups is a good place to start, as well as Gumtree.

There are also specialist listing sites such as Camplify, Static Caravan UK, Rent My Caravan, Airbnb, and booking.com but be aware that all of these platforms charge a fee to advertise your property or take a cut of the booking fee.

If you are planning on making renting your static caravan into a business venture, you might even consider setting up a website and setting aside some money to spend on ad platforms such as Google Ads and Meta Ads to reach a wider audience while having more control over how much you spend on advertising.

Managing bookings and payments for renting out your caravan

If you do decide to go down the route of using a specialist listing site, you probably won’t need to consider managing bookings and processing payments when renting out your static caravan, as this is included in their fees.

However, if you are not going to utilise these platforms to advertise your static caravan, you’ll need to come up with your own booking system, and decide how to accept payments.

Using a free online calendar, such as Google Calendar, provides a simple solution for managing bookings, and can be accessed from your computer or mobile phone so you can respond to questions about availability quickly.

Asking for a security deposit upfront is never a bad idea, as this ensures that your tenants respect your caravan while also covering the cost of having to make repairs or fund replacements as a result of accidental damage more quickly.

How you collect the payments is up to you, but make sure you keep records, preferably electronically and backed up, and choose a method of payment that is secure and reliable, such as a bank transfer or PayPal.

It’s worth bearing in mind that when you are managing bookings yourself there are scammers out there, so be careful about sharing any financial information or details about the property until the booking is confirmed.

You will also need to have a cancellation policy in place which details the circumstances when a refund is or is not permitted, either partially or in full.

Setting the rules for stays at your static caravan

Laying down ground rules for guests staying in your static caravan is crucial.

At a minimum, you should inform guests before they stay of what is and what is not acceptable. This could include things such as whether pets are allowed (many people will want to bring their dog with them on holiday), whether children are allowed (some sites are adult only), and what the rules are around gatherings and parties. This will need to extend to not only what you deem acceptable, but also what the park rules are.

Provide details of your check in policy, including how they will access your caravan and what times they need to arrive and leave.

Additionally, you should outline what responsibilities lie with them, and you. If you are willing to go the extra mile, provide cleaning supplies, toiletries, and basic food items to make their stay a little more comfortable. Confirm things like who will dispose of rubbish and recycling, and what your expectations are for them to leave your caravan clean and tidy, such as loading the dishwasher before they leave. If there are areas in your caravan or certain items that you don’t want guests to access or use, be clear about this too.

It’s a good idea to leave a copy of the rental terms and conditions of staying in your static caravan where the guests can easily locate them and refer to them at your property.

While not essential, it is recommended that you have a legal document in place to establish clear expectations and protect the rights and responsibilities of both parties involved. Although you can find templates for rental agreements online, it’s important to note that legal documents should be tailored to your specific situation and UK law. Consulting with a legal professional is advised.

Keeping your static caravan and its occupants safe

When renting out your static caravan, it’s important that you have everything in place to keep both your holiday home and its occupants safe.

You need to obtain an annual landlord gas safety certificate, ensuring your property undergoes a yearly gas safety test. The certificate must be visibly displayed within your caravan.

For electrical items, such as heaters, kettles, and toasters, you must conduct portable appliance testing (PAT) annually to ensure their safety. A fixed electrical installation certificate is required every three years, which involves testing the caravan’s electrical wiring system.

The park owner or manager may already have recommended contacts who can help you with gas and electrical safety checks and certification.

Installation of a smoke alarm and a carbon monoxide alarm inside your caravan is a legal requirement, as is having a fire extinguisher and fire blanket.

Provide information on what your guests need to do in the event of an emergency, such as a fire, storm, or flood in the park, including the meeting point for evacuations.

You might also want to provide a safe or bike locks to give your guests extra peace of mind that their possessions will be safe when they are away from your caravan.

Maintenance and emergency repairs

No matter how careful you are, or how careful the people you rent your caravan to are, accidents can, and will happen.

When you are not on-site, it can be more difficult to arrange for someone to repair or maintain your static caravan.

To keep things as stress-free as possible, provide your guests with a list of emergency contacts. For any bigger mishaps that require your intervention, have contact details for an electrician, plumber, gas engineer, and general handyman, as well as the contact details of your insurer so you know repairs and maintenance can be carried out quickly and to a high standard.

When it comes to keeping your property up to a high standard, after every stay, a professional cleaning company should be coming in to make sure your static caravan is sparkling before your next guests arrive, if you are not able to do this yourself. Similarly, if you have an outdoor area that is not the responsibility of the park to manage, a gardener should check in on things every so often to keep the exterior looking its best.

Check that you have the correct insurance

It is essential that you have a static caravan insurance policy that allows you to rent out your property. Without it, any damage caused by the party you have rented to will not be covered.

Note that when renting out your static caravan, there is likely to be a higher excess for damage caused intentionally by anyone staying there.

If in doubt, speak with a specialist static caravan insurance provider, like Compass, who can advise on which policy is suitable.

Public liability insurance is another consideration, as this protects you if someone is injured, or their property is damaged while staying at your static caravan.

I am already a policyholder – can Compass insure my caravan when it’s being rented out?

If you are already a static caravan holiday policyholder with us, good news! Compass can cover your static caravan if you choose to rent it out, providing you follow all of the rules your park may have in respect of renting.

During the periods that your static caravan is rented out, some of the covers provided under your Compass policy will be affected. For example, there is a higher excess for malicious acts or vandalism if this is caused by someone hiring the unit from you. Additionally, unless there has been violence or force used to gain entry or exit of the unit, we don’t cover theft from authorised users.

We also provide cover for loss of rent if your structure is uninhabitable as a result of loss or damage covered in the policy, however, there are some limits and conditions to this cover.

To ensure that you have the correct cover in place, we advise you to get in touch with us before renting out your static caravan.

Comprehensive static caravan insurance at a competitive price

Whether you are looking for static caravan insurance to cover just you and your family, or are considering renting it out to guests, Compass can help. Get a quote online in minutes, or speak to our friendly UK-based team today.