Today, I will be going over a perfect step-by-step guide to maximize your car’s earning potential through a rental side hustle. This side hustle brings high profits with very little work. Not only can it offset the costs of the car, renting out your vehicle can unlock a steady stream of income. Let’s go through the essential steps and the legality of this business, going over how you have no risks and a very successful car rental business.
My brother for example had purchased a tesla model Y, he then moved to Las Vegas Nevada in which he figured that since he lives on the strip he wouldn’t necessarily need his car as much.
After realizing that he decided to rent out his vehicle at a rate of $150 a day. Fast forward he is actively accumulating $1800-$2300 a month with very little work. The work consist of driving to the airport and dropping the vehicle off to the customer and than taking the bus back home.
Key Findings
- Average Turo Host makes $1000 to $1500 Per Month.
- Rental apps provide Full Insurance coverage, no risk.
- Gas Efficient and Luxury Vehicles are the most optimal to rent.
How to Prepare Your Car
Preparing your car is crucial in order to have a thriving business, before listing your vehicle on Turo you’ll need to ensure that it is in fact in top condition. The last thing you ever want is a customer getting into an accident because you have not done a thorough inspection. Address any maintenance or repair needs, and ensuring all you have all the right documentation, such as insurance and the title. A clean, well maintained vehicle not only attracts more potential customers but also helps build trust and secures positive reviews.
Determine Rental Rates
Setting the appropriate rates is vital for attracting potential customers while making a decent amount of income. For example we are going to go over the normal rate of certain vehicles in the city of Los Angeles.
- 2023 Range Rover $250/day
- 2015 Bentley GT $207/day
- 2023 BMW Xm $230/day
- 2021 Mercedes G $276/day
- 2018 BMW 5 series $61/day
- 2015 BMW M4 $85/day
- 2020 Tesla Model 3 $65/day
- 2020 Honda Civic $70/day
Here are the typical rates for the most popular vehicles in Los Angeles. Keep in mind that pricing may vary across cities. Here is a realistic goal of renting your vehicle and that having it rented for two weeks per month, multiply the daily rate by 14. For instance, a 2020 Tesla Model 3 can be rented for $65 per day, resulting in a total of $910 a month.
Choosing the Rental Platform
Let’s discuss the different rental platforms you can use. Popular platforms like Turo, Getaround, or local sharing services. You may even personally list up your vehicle to rent through craigslist and social media sites, the downside with that is paying for additional premium insurance.
Turo: Pros & Cons
Pros:
- Wide Reach: Turo is by the most popular and widely recognized platform, attracting the largest user base, overall increasing the likability your vehicle will be rented.
- Flexibility: You have total control over your rental terms, adjusting the pricing, availability and your own vehicle restrictions.
- Insurance Coverage: Turo offers liability insurance coverage, which provides protection for your vehicle saving you money and a headache.
Cons:
- Service Fees: Turo Charges relativity high fees on each rental, which can deeply eat in your profits.
- Competition: Due to this platform being the largest, it comes with high competition, affecting your rental bookings and competitive price matching.
- Local Regulations: Depending on your location, there may be additional regulations that were imposed on Turo Rentals specifically, so it’s important to double check your city rules.
Getaround: Pros & Cons
Pros:
- Instant Booking: Getaround offers a feature known as instant bookings in which allows renters to book your car without your approval, which increases rental frequency.
- Pricing: Getaround utilizes pricing algorithms in which adjusts your rental rates based on the demand, making sure you’ll be making income regardless of the market conditions.
- Total Access: Getaround has a device installed in your vehicle, it allows keyless entry and remote access, making the whole rental process more convenient for you and the renter.
Cons:
- Limited Availability: Getaround is currently not available in the entire United States. In specific states such as Oregon does not have the platform. This may restrict your ability to rent out your vehicle.
- Car Requirements: The platform has requirements that must be met in order to rent out your vehicle.The year of the car, and age of the individual. They may even have to show there driving record to know if they’ve been in multiple accidents.
- Insurance: While Getaround provides insurance, there may be certain limitations and are not sought out to be similar to Turos insurance. There may be certain limitations and deductibles that will unfortunately impact your protection.
Create the right Listing:
You will need to stand out from your competition, because the rental competitors are continuing to rise every year. You’ll need to be slightly more competitive by showcasing your cars best features maybe you have a modification, tinted windows, nice paint job, or some nice rims.
Include the highest quality photos, and accurate descriptions. Be sure that when you take pictures of your vehicle it is placed in a nice scenery for example at the beach or under bright lights. Be very transparent and communicate with the renters, add any additional perks or services to attract renters.
Monitor Performance and Adjust:
It is important to regularly evaluate your rental performance. Optimizing and understanding statistics is crucial to scale your business even further. Understanding how to read the metrics such as booking frequency, and customer satisfaction will only improve future results. After knowing which vehicle performs best you may want to add another car into your portfolio and to further increase your overall revenue.
To Conclude
In conclusion, renting your car for income is a great side hustle. Not only is it rewarding but it provides security in your payments. By following these essential steps and implementing specific strategies that we have talked about will bring you a lot closer to achieving your goals. Get ready to turn your vehicle into a lucrative asset, by generating a steady income and potentially a full on operating business.
