Just bought a party RV in California and have questions

[Zebest]

First, I found this forum in google search, though I don’t have a skoolie I felt this forum could still be of great help to me.

I just bought a 1974 RV in Los Angeles Ca from a retired party bus business. I should have researched all the laws and rules before buying the rv but instead I am doing it backwards.

First and foremost I have searched post after post and still have some questions. I am in California.

I am hoping to rent this party bus out for bachelor / bachelorette parties.

This RV will have 10 passengers max, including the driver.

What insurance, drivers license type, anything else I need?

Thank you

[TheHubbardBus]

Good call buying an RV for a business you know nothing about. Even better asking legal advice on an internet forum dedicated to a completely different topic.

[john61ct]

OMG can you imagine the insurance you'd need?

Especially if those "renting" it are allowed to drive it!

What a nightmare.

Invest in top-notch lawyers dude. . .

[Sehnsucht]

Where do I begin? I'm not even going to bother outlining all the pitfalls. Instead, I'm just going to say trust me, don't do it. If I read one more article about a limo or party bus disaster... Just don't.

[Zebest]

Thank you for all the positive comments. I have researched it, just trying to get as much knowledge as I can.

I need commercial insurance which will cost approx $2200 a year.
Workers Comp $1500 a month, per employee
$1000 a year in fees.

Just trying to get input from as many sources as possible, looks like this forum isn't a good source.

Happy Thanks Giving you scrooges.

[john61ct]

If it's truly your dream all the naysayers won't slow you down.

Doesn't mean it's a feasible business model though.

Best of luck though. . .

[Zebest]

Honestly it wasn’t a dream, it was an idea. I have had a lot of them in my life. Including opening multiple businesses and selling them.

I will figure it out and make it work, was just thinking this forum would be helpful. I was sure wrong. I will be talking to insurance agencies next week, and the local CHP and dmv.

Such a shame of a response from these people,
Unbelievable really. Goodnight

[john61ct]

Make sure to focus on liability issues, for the actions of your customers & their guests.

Similar to a nightclub's, and why I suggest consulting a lawyer.

Keep the bus stationary for the customers to enjoy, only you and your employees actually drive it.

[Danjo]

There’s a company out there that’s advertising Airbnb style rental of RVs (what could go wrong?). I didn’t follow the link but it seemed as though insurance was included in the service they were offering. I would bet the insurance would be like loan shark interest level money.

[brokedown]

Good luck with your project, I just don't expect you'll find much help here. Despite knowing a lot about building a home on wheels, we don't have a large base of knowledge about commercial RVs.... While insurance is a common topic here, it's very different from the insurance you would need. And California is the state with the most strict regulations around vehicles.

I have seen many "party bus" skoolies on craigslist etc for sale which makes me think it's not a very successful business model... You don't sell the thing that makes you money. I haven't seen a traditional RV converted for that sort of use.

[Zebest]

Thank you for the more friendly messages.

I am going to make phone calls today and figure out the next steps to properly setup this business and RV for commercial use.

[Sehnsucht]

Okay, I have a little time now (its Black Friday so of course everyone's slammed with shoppers and no one's in receiving to unload pre-scheduled deliveries) so let me lay out my concerns and maybe it'll help save yourself a lot of headache.

1. Everyone had already said insurance... Insurance, insurance, insurance. You have a number of different types of insurance that will come into play, including general business liability, commercial vehicle liability, and if god forbid you let someone else operate the vehicle then there's property and AD&D third party waiver liability. This last one is basically like what you opt in or out when you rent a car or moving van. There's the replacement value of the vehicle, any damages to the vehicle, any damages caused by operating the vehicle, and the worst case scenario of causing death or permanent injury in the course of operating the vehicle. When you rent a vehicle to someone, there's now multiple parties for victims to sue. So yeah insurance is an enormous part of the equation.

2. The age of the vehicle is or should be a serious concern. A 45 years old vehicle is not going to be the most reliable anyways and especially not if you intend to make money with it. What happens when it breaks down prior to a gig? Or worse, DURING a gig? A dozen people on the side of the road and when the tow truck shows up they're not all going to pile back in. More planning, more insurance, more headaches.

3. You say its an RV - what kind? Was it commercial bus converted into an RV and now you intend to put it back into commercial use? Or is it some half-century old Winnebago that was stick built on bread truck frame and now you want to charge people for a nostalgic joyride? If its the latter, good luck finding any underwriter who wants to take that liability.

4. No matter what the vehicle capacity, if you intend to make money with it that makes commercial use. There will undoubtedly be some debate on this point but I don't like flying under the radar when it comes to flaunting regulations due to vague or marginal classifications. If you're making money, its commercial. Therefore, the insurance company has greater risk, you have greater risk, and if you don't have the proper licenses, permits, etc then you are legally exposed at any time, being it routine traffic stop or even while you're broke down on the roadside an an officer rolls up to offer assistance, discovers you're operating an illegal commercial vehicle, and impounds it.

5. If all that's not dissuading enough, why on earth would you choose to get into any type of gig economy business in California NOW?! In case you haven't heard, California has basically declared war on small businesses just like this and you think this idea will be worth pursuing? I'm sorry, I'm not trying to be mean but please have your head examined. You are heading upstream fast with this idea and the fact that so many voices are saying reconsider should be cause to, well, reconsider. We're not trying to be mean but the warning signs are there if you'll just stop and look around. If indeed you've launched other successful businesses then hopefully you've developed a nose for when an idea isn't fresh and boy does this one stink!

For what its worth, this community isn't about tearing down ideas. We're a little touched and we know it, all this turning buses into RVs - its impractical and a little crazy quite frankly. But hopefully the force of the collective dispassion for your idea carries enough weight to cause you to reconsider, save yourself a lot of headache, and maybe even appreciate that we didn't just pat you on the back and give you false expectations for what to expect.