Do you have a car that often sits unused? Would you like to earn some extra cash with it? You can rent it out. There are many people who often look for rental cars. It can be a passive source of income to help cover the maintenance costs, monthly payments, or just earn have extra spending money. In this article we will cover how to rent out your car to others, so read on if you are interested.
Why rent out your car?
There is more than one reason people rent out their cars.
You make extra cash. Your car can cost you more than $8,000 per year if you drive about 10,000 miles: you can check out the statistics of the costs here. You might also still be paying for your car to financial institutions (make sure you are not breaching the contract when renting out the vehicle in this case). When you rent out your car, you can earn at least several hundred dollars a month: many people get over $700 every month.
Your car does not sit unused. Cars are designed for people to use them. If they sit idly for a long time, problems might arise. When you rent out a car, you avoid this risk.
You may qualify for tax reductions. If you rent out your car, it can be treated like a small business. It means that you can get tax reductions. Just remember to track all your expenses diligently.
Of course, renting out your car has its disadvantages too. You have to manage the requests, which takes time. You will have to check and clean the vehicle between renters. People will use your car constantly, and there will be more wear and tear. Also, accidents might happen. Although insurance should cover you, it is still a hassle to deal with them and fix the car.
How to rent out the car?
The best way to rent out a car is with a company, not by yourself. Of course, you could post an ad on Craigslist, but we do not recommend it. In some places, it can even be illegal for you to rent out the car yourself.
The most popular app for renting out cars is Turo. There is also HyreCar, Getaround, etc. Each company has its requirements set: for example, you cannot list a car on other platforms if you want to list it on Turo. Usually, the mileage has to be under 130,000 miles or so in most companies.
You can also post an ad for your car on XRental. Our motto is allow partners make money, so we will not try to rip you off. Of course, we have requirements too: the car must be in good condition so that the renter is happy. If your vehicle has bald, worn tires, we would not be able to guarantee a good experience for the client, so we do not accept such cars. Otherwise, we would be happy to have you as a partner. Contact us if you would like to list your car for rent and earn!
How much can you earn?
This question is often the most important for many people. Of course, it depends. For example, renting your car by the hour can earn you much more money, but you also need to give it more time. Even every day can be too much: many people choose three days as a minimum duration. It also depends greatly on your location. Some cities, especially large ones, have more people that want to rent a car. In such high-demand cities, popular cars are most in-demand, such as Tesla. In places with lower demand, the vehicles mustn’t be as popular. It also depends on your car: the better it is, the more you can earn.
Companies that let you list your car on their platforms take a fee, often for both listing and insurance. For example, Turo takes from 15 to 40% of the amount you receive. If your insurance would cover your car when you rent it out, you could refuse the company’s insurance and earn more.
To give you some numbers, let’s compare the most popular car-sharing companies. On Turo, the average host makes about $550 per month. It’s similar on Getaround, on which a host seems to make $500 a month on average. Of course, you can earn more. Getaround says you can make $10,000 a year. HyreCar claims that you can make up to $12,000.
Check out our article on how much you can earn when you rent out your car in Dubai.
Tips for renting out the car
There are several things you can do to attract more renters and earn more extra cash. First, make sure your car rental ad is appealing. Have good photos. Take a picture of your car from the front and side. Ensure the vehicle is clean. Also, create a good, clear description so that renters know what they are getting.
Before setting the price, research what is the price for other vehicles in your area. It will help you get an idea of what the price should be. Also, be very responsive: do not let requests sit unanswered. People will simply look for other cars then. Be as helpful as possible when answering. Also, make sure that insurance covers your vehicle when it’s in the hands of renters.
To ensure rentals are smooth and you have as little trouble as possible, remember several things. First, take many pictures of the car for yourself as you can, such as 60 or so. Include objects such as side mirrors, seatbelts, etc. Pictures will help you recover money if renters damage something.
Finally, remember to clean the car between guests and to maintain it well. Fix any arising issue as soon as possible. It will both make your guests happier and help avoid accidents. And do not leave any personal items in the car: it’s simply not cool.
Perhaps you also own a parking spot? Maybe you are not using it much? You can also rent it out for extra cash! Check out our article on renting out parking spaces.