Motorohome Investment Plan

Your MotorHome will be professionally managed and marketed by an established Canadian company, Toronto Camping Centre Inc.

As the owner of a specific MotorHome, there are no restrictions on personal use. You can enjoy your holidays with your family and friends at a leisurely pace and visit points of interest throughout North America. Toronto Camping Centre acts as your MotorHome manager in that we promote, maintain, clean and report all aspects of the use of your MotorHome directly to you. You simply call us and request that your Recreational Vehicle (RV) be ready for the dates reserved, and we treat you just as you are … the owner!

Our over 20 years experience with renting MotorHomes makes this all possible, and what’s more, all your rental income is earned tax-free. You pay 13% HST on your purchase, but you claim the HST back as an input tax credit as you are now in the business of renting MotorHomes. You may also claim back all the HST on your business expenses, such as repairs, parts, insurance, etc…..

Income Tax Consideration
Normally, rental income is added to taxable income, however, RV owners are permitted to reduce taxable Rental income down to zero by the use of depreciation. This depreciation is calculated at 30% per annum on a declining balance, with 15% allowed in the year of acquisition. Your net result is that all Rental income is free from income tax after allowing for deductible expenses such as depreciation, maintenance, insurance, financing interest and license fees.

Owner Use
The owner can reserve the use of their MotorHome in any season; however, use in High or Mid season will reduce the Rental income proportionately.

Operational Responsibilities
For our fee, 40% of the daily rental rate (including mileage and generator use), Toronto Camping Centre is responsible for marketing to the general public, as well as movie production companies and tour operators using various media. We are also responsible for invoicing, receivable collections, billings and providing customer contracts using our reservations system. As well, we provide demonstrations on the use of a MotorHome to our Rental clients. In addition, our professional service and maintenance staff complete a thorough vehicle check-in and out and cleaning of your RV, advertising, providing replacement parts and accessories, and assisting renters with any on-road concerns.

Owner Responsibilities
As the owner of the unit, you will receive from Toronto Camping Centre 60% of the daily / kilometer / generator rate collected (calculations and an invoice will be supplied by TCC) plus applicable HST. Following the transaction, TCC will pay the owner quarterly, in March, June, September and December. You are responsible for any bank payments if the RV is financed, license plates, renewal fees and insurance.

Repairs and Maintenance
The cost of maintenance and repairs is deducted from income, however, the RV is covered by a manufacturers 3 year / 60,000 km warranty, during which TCC will arrange for any warranty repairs that are required. Most owners purchase optional full-coverage warranty, which will protect your investment up to 7 years or 120,000 kms. Of course, any damage caused by renters will be repaired by TCC and billed directly to the insurance company, with the renter being fully responsible for the deductible portion, not the owner of the MotorHome.

If the idea of letting a few rental clients pay the majority of your annual costs of owning appeals to you, simply ask one of our Sales Representatives for more information.

Example:
A typical unit purchased for Rental use:

2011 Impulse 31C (sleeps 6-8)