Renting out cars has definitely become a popular way for people to generate some passive income.
After all, if you have a car which you barely use, why not make some money out of it?
If you are smart about the renting platform you choose, whom you rent your car to and how well you take care of it you can make several thousand dollars a year.
Let us take a look at some tips on how you can make money by renting out your car.
Choose A Good Car Rental Platform
There are many local and global online car rental platforms. Make sure you pick one which is reliable and do a thorough background check.
You should consider factors like,
- The type and amount of insurance coverage provided.
- Listing cost if any, subscription fees and any other costs.
- Location availability.
- Screening procedures and safety checks.
- Customer ratings.
Once you have reviewed all these factors you can go ahead with the best choice.
Currently the popular platforms are Turo, GetAround and Zipcar.
Make Sure Your Car Is Well Maintained
Every rental platform has their own safety and maintenance requirements which all car owners must meet before they can rent out their car.
Make sure your car is in good condition and perform all the necessary inspection procedures. If anything needs repairs or replacing like lights or seat covers, take care of it before your listing goes live.
Many people tend to neglect details like seat covers but it is important to keep your seats well protected whether you are renting out your car, truck or even a jeep. You can easily find high-quality seat covers for all Jeeps online.
If there are dents, visible scratches or bulges in the tyres, your car will get rejected and your listing will be taken down as well.
Do A Background Check On The Renters
You have to make sure the renter has a good record before you rent them your car.
With online platforms, you can’t personally get to know each renter.
In this case, asking for documents, license proof and other relevant information will help you gain more trust.
Set An Appropriate Rent
If you are unsure about the rent you should set, do some research about the model of your car and go through the rates of similar models.
Make sure your quote isn’t too high or low.
If it’s too high, customers will most likely turn towards other models.
If it is too low, you will struggle to make any profit by renting out your car.
It is possible to make more than $600 every month if you are smart with how you price and rent out your vehicle.
Avoid Renting Out Your Car Too Many Times In A Month
The more you rent out your car the faster it will get worn out or become susceptible to damage.
Make sure to give your car some rest between each rental.
Perform thorough inspections after a rental to make sure the car is in its best shape. You should keep track of your car’s mileage as well and make sure it doesn’t go overboard.
Set Ground Rules
It can be difficult to trust another person with your car especially if it’s one of your prized possessions.
In the listing , make sure to set rules about what the customer is not allowed to do. This can include smoking, drinking, drugs or anything else which you don’t deem fit. If any of these rules are broken and the car ends up being damaged, you will be entitled to receive compensation.
However it is better to avoid such situations so make sure you are clear about the rules and regulations.
Consider renting out your car only if you barely use it.
Things can get pretty complicated if you are unable to get back your car on time and you end up in a situation where you urgently need it.
Consider collecting payment upfront and take a security deposit so that you will be less prone to scams. You can also track the car with a GPS so you know the car is not being misused.