Owner
      Back to home
      1. Help Center
      2. Noovo Owner Rental Program
      3. Owner

      Rental Success: A Rental Case Study of Noovo Lite Campervans in Their First Year

      Rental Performance Insights for Noovo Lite Camper vans.

      Introduction

      In 2024, a fleet of four Noovo Lite campervans during their first year of rentals demonstrated the incredible potential for generating income through short-term rentals. This case study focuses on the consolidated performance data from all reservations for these four vans, examining revenue outcomes under two distinct operational models:

      1. Owner-Operator Model: Owners manage operations and retain a higher percentage of revenue.

      2. OffGrid Full-Service Management Model: OffGrid handles all operations, providing a hands-off experience for owners.

      Performance Overview

      Total Net Revenue Across All Reservations (Jan–Sept 2024): $141,619

      This figure represents the combined income after accounting for rental revenue, add-ons, discounts, credit card fees, and third-party marketplace fees.

      Program #1: Owner-Operator Model

      Overview

      Under this model, owners handle day-to-day operations, including cleaning, check-ins, and renter communication. OffGrid charges a 20% booking fee on net revenue, the owner keeps 80%. Add-ons provide an additional income stream, with owners keeping 80% of the add-on revenue as well.. Add-ons include early check-ins, late returns, Starlink rentals, e-bike rentals, delivery fees, and other premium services.

      Revenue Breakdown

      • Nightly Rental Revenue: $120,000 (combined total for the four vans).

      • Add-On Revenue: $21,619 (average add-on revenue per van: $5,405).

      • Total Revenue: $141,619 ($35,404 per van).

      • OffGrid Booking Fee (20%): $28,324 ($7,081 per van). OffGrid reinvests in marketing and operations to keep bookings flowing.

      • Owner Earnings (Net): $113,295 ($28,323 per van).

      Advantages

      • Higher Revenue Retention: Owners keep the majority of net revenue.

      • Add-On Control: Owners profit directly from add-on services such as Wi-Fi rentals and camping gear.

      • Operational Control: Personalized management allows owners to ensure top-notch service.

      Challenges

      • Time Commitment: Managing cleaning, check-ins, and maintenance requires significant effort.

      • Operational Responsibility: Owners bear the responsibility for smooth operations.

      Example Outcome

      • Net Revenue for Georgie: $35,000

      • Owner Earnings After Fees: $28,000

      Program #2: OffGrid Full-Service Management Model

      Overview

      In this model, OffGrid takes on all operational responsibilities, including cleaning, check-ins, and renter support. Owners receive 50% of the night rental revenue only, ensuring a passive income stream. Additionally, OffGrid retains all revenue generated from add-ons, including early check-ins, late returns, Starlink rentals, e-bike rentals, delivery fees, and other premium services.

      Revenue Breakdown

      • Nightly Rental Revenue: $120,000 (combined total for the four vans).

      • OffGrid Management Fee (50%): $60,000 ($15,000 per van)

      • Owner Earnings (Net): $60,000 ($15,000 per van).

      • Add-On Revenue (Retained by OffGrid): $21,619 (average add-on revenue per van: $5,405).

      Advantages

      • Passive Income: Ideal for owners who prefer a hands-off approach.

      • Professional Management: OffGrid ensures consistency and quality in renter experiences.

      • Time Savings: Owners can focus on other priorities without managing day-to-day operations.

      • Enhanced Add-On Revenue for OffGrid: OffGrid maximizes additional income streams through premium service offerings.

      Challenges

      • Lower Revenue Retention: The 50% management fee reduces the owner's share of income.

      • Add-On Revenue Exclusivity: Owners do not retain revenue from add-ons or premium services.

      Example Outcome

      • Net Revenue for Sandy (Nightly Rental Revenue Only): $30,000

      • Owner Earnings After Fees: $15,000

      Key Takeaways

      1. Revenue Potential:

        • Both models provide strong income opportunities, with peak revenues occurring during summer months.

        • Add-ons like camping gear and Wi-Fi enhance total revenue.

      2. Operational Preferences:

        • Owners seeking higher income and hands-on involvement benefit from the Owner-Operator model.

        • Owners prioritizing convenience and time savings prefer OffGrid's full-service management.

      3. Seasonal Optimization:

        • Ensuring van availability during peak months significantly boosts revenue potential.

      Conclusion

      This case study highlights the flexibility and profitability of renting out four Noovo Lite campervans during their first year of operation. Whether choosing the Owner-Operator or Full-Service Management model, owners can unlock substantial income streams while catering to their operational preferences.

      For those interested in maximizing their campervan’s earning potential, OffGrid offers tailored solutions to meet diverse needs. Contact us today to explore your options!