Like renting your home or apartment on Airbnb, renting out your car will make you a part of the gig market. A supplemental income in hand is not very bad, is it? Furthermore, if you live in an area with ample public transportation, odds are you do not use your car on a daily basis. So, renting it out can be a good means of earning a little extra cash.
There are companies out there, such as Turo, Getaround, and Hyrecar, that can help you rent out your car. However, there is a checklist that you must consider before proceeding with renting out. What are the possible drawbacks of renting out your car? How much can you make if you rent your car out?
Way.com outlines how you can turn your car or truck into a new source of income with a comprehensive guide on how to rent out your vehicle and what you should look out for while renting your car out.
Running a benefit and risk analysis before venturing into something new is always advisable. Here are the possible risks and benefits of renting out your car.
You can choose to either rent your car out on your own or through rental platforms that will help you display your car's availability for rent.
Not every car or every car owner can rent out their car. So, one must check if the car meets the required criteria before renting out their car.
Auto insurance: Confirm if your car insurance meets the minimum requirements of your state and the rental company. In addition, if you are opting for peer-to-peer car-sharing services, check for supplementary protection plans.
Age, mileage, and title history: Every car slotted for renting out should be within the designated age and mileage limits. Similarly, a clean title history is essential without any trace of being a salvage car or a total loss.
Car value: If you own a car with a high value, ensure the value assigned is high, then check if its value matches what will be assigned in the chosen platform.
Notifying your insurance company
Inform your car insurance provider about renting out your vehicle. For instance, some car insurance policies may prohibit commercial uses like car sharing. Therefore, notifying your provider about this can help you understand the possibilities and requirements and avoid unexpected cancellations.
Registering with the rental service
Register your car on the rental platform once your car meets the eligibility criteria and your insurance is in order. You should provide the necessary details as mentioned.
Provide detailed information about your car.
Upload photos or allow the rental service to handle this step.
Specify the dates of availability.
Attend training sessions provided by the service.
Opt for the service's insurance options for coverage during rental periods.
Monitoring rental requests
Upon receiving a request, you can approve or decline the rental. However, if you have accepted the order, coordinate the pickup and return details directly with the renter.
Inspection and documentation
Conduct a comprehensive inspection of your car each time it's returned. Document any damages promptly to report issues to the rental agency for necessary action.
This will help streamline the process of renting out your car. In addition, it will also ensure compliance with the rental service's requirements.
Turo, HyreCar, Getaround, Uber, and Lyft are the common platforms that can be used to rent out your car.
Here's a comparison of the most popular rental platforms.
Car Sharing Apps
Which one should you opt for?
However, you can also use Uber and Lyft to rent out your car. For instance, both these apps partner with HyreCar to rent your car. Therefore, after listing it on HyreCar, if your car meets the Uber/ Lyft standards, it becomes eligible to be rented out.
You can certainly rent out your car independently without going through car-sharing platforms. However, if you are taking this route, it requires a few extra steps
First, finding potential renters will require extra effort as you will need to find them out on your own, instead of on a rental platform.
Secondly, check whether you have enough coverage as you oversee the rental process. Similarly, you'll require rental insurance coverage to proceed with the process.
Furthermore, draft a rental agreement or contract with a legal professional outlining the rental terms and conditions, giving clarity and protection for both parties involved.
Even though you'll have more control over the process and the clients, it requires constant attention regarding marketing, insurance, and other legalities.
There are some key differences between car sharing and car rentals:
Pickup: Car sharing offers neighborhood flexibility, while rentals have designated locations.
Vehicles: Sharing provides diverse owner options, while rentals offer standardized fleet choices.
Cost-effectiveness: Sharing shines for short trips, while rentals fare better for longer journeys.
Renting out your car is a feasible way to make some extra money, especially if you have a car that you seldom use. However, it involves paperwork, prompt insurance payments, and regular inspection after every ride. Furthermore, among the different platforms available, you should choose the one that aligns with your needs and demands as the car's owner and matches the value of your vehicle.