$500/Month Passive Income Renting Your Car [Beginner Guide]
Instead of letting your car sit around collecting dust, you can rent it out using the Turo app. Many car owners are making well over $500 a month renting their cars using this great platform. If you would like a piece of this great passive income source, then you are right where you need to be. Your car can become a passive income source for you if you don’t use it on a regular basis, and Turo makes this process especially easy for beginners to rent their cars.
Can you make passive income renting your car? You can make passive income from renting your car on popular car rental apps like Turo. Cars are a necessity and generally renting a car is less expensive than hiring a taxi for long distance travel. Many YouTubers boast about making well over $1,000/month on Turo renting their car which is not bad at all considering it’s not time demanding.
Best of all, renting your car through Turo is easy, especially for beginners. So, this is a passive income method you can try out fairly quickly if your car is available for rent. Below are some steps to making an income worth hundreds of dollars passively by renting your car on Turo.
How to Make a Passive Income Renting Your Car
A car is a pretty big expense. Fortunately, with a service like Turo, you don’t have to helplessly watch your car drain your finances in gas, repairs, maintenance, and insurance. This site lets someone else help offset or even cover these costs so that owning a car turns into something that actually provides you passive income. Don’t let your car make a “dent in your budget” 😉
We are going to take Turo as an example but there are many other apps around the world that allow you to rent your car out peer-to-peer. You could check out Drivy in Europe for example. Do a quick search in your area for more peer-to-peer car rental services.
1. Ensure Your Car Meets Turo’s Criteria
Obviously, Turo requires that you meet certain standards before you list your car on the site. For instance, you might need to have your car registered in certain States. Additionally, your car should not be too old. The company does not accept cars older than 12 years.
Furthermore, the car needs to have less than 130,000 miles on it before you list it, and it also needs to meet the company’s insurance requirements. Other requirements you have to meet include the fact that you have to be at least 21 years of age for some countries, and 25 in the UK. The car also needs to meet the auto insurance standards Turo has in place for those who want to rent out a car through the platform. Make sure to read their fundamentals before signing up.
2. Register on Turo
3. Compelling Photos & Detailed Descriptions
This is a pretty serious step, as low-quality pictures will not help you promote your car properly on the site. There are even cases of Turo offering to have a professional photographer come and take photos of your car. But if you can take good quality snaps yourself, they can work with them.
You really should stage your car. Display the car in its best possible condition and is parked in a nice spot. Make sure it is spotless on the inside and out before taking photos. Cell phone photos with a new phone on a sunny day will be perfect. Take photos with the sun behind you or they will be overexposed.
Generally, the more detailed your car’s description as you list it on Turo, the better. For instance, offer details about its gas consumption, availability of four-wheel driving capabilities, how nicely it handles, presence of Bluetooth and so forth. Luckily, you should not have a problem offering these details as the site will offer you some guidance on what to put down.
4. Determine the Car’s Rental Price
This is the fun part, but nonetheless, it’s just as important as many other steps in this process. Instead of coming up with price figures in your head based on how much you want to make off your car in a month, you can have a look at similar listings and set a comparable price. You can offer a slight discount to increase your car’s demand. Also understand that prices may change from time to time, so, be sure to adjust the prices accordingly to avoid missing out on good income opportunities.
Once someone rents your car, you will get a notification on your phone through the Turo app (make sure to download it, log in and accept notifications). You can even send them a message, and you will have a chance to address any concerns they might have about the car through the app. But this should not take a whole lot of your time, and it will hardly have an impact on anything else you do throughout the day. From there, you will get cash in your account through Turo for your car rental service. The platform will take a percentage on your rental (generally around 25%).
Pro Tips for Renting Your Car
You can screen your renters, and it’s a great idea to do so, especially if you are renting an expensive or luxury car. For example, you can contact them by phone or via FaceTime before accepting their rental request. Make sure they understand your expectations. Just know that you can decide who rents your car.
Set a minimum amount of rental days to ensure you make get more money for your time. Even if you don’t have to invest much time, it may be more of a hassle to rent your car and have it returned on the same day. You can set the minimal date to 3 or more days if you want. Long term rentals allow you to hand off the work and make more money.
Many Turo car renters recommend not renting your primary car. That’s because it can limit your car’s availability, especially if it is necessary for you to be able to get around or commute to work. Ideally rent out a secondary car that you do not use as often. It’s possible you are buying a secondary car with the mindset that you could rent it for cash on Turo from time to time. If so, then you might as well get a car that will offer you the best car renting experience on this site.
For instance, some cars are in higher demand on Turo, especially when these types of cars are common in rental car businesses, which makes it easier for the renters to know how much to pay for them. Examples include the Toyota Prius, Ford Mustang, and the Chevrolet Corvette just to name a few. Note that demand for certain cars can vary based on your location.
How Passive is Renting Your Car on Turo?
There are risks involved in renting your car to strangers. You never know if they may damage it or attempt to steal it. Make sure to check out the liability and insurance packages offered by Turo or any other platform you may use. For instance, if any damage happens to your car, the platform’s insurance may cover it.
As an extra precaution, you should have clear images of your car before you rent it so that you can have proof of damage to give to Turo if the car is returned with some issues that insurance might not necessarily cover. This can help you get reimbursement for the damages your car suffers. Make sure to read the platform’s policies and decide if it is right for you before signing up. You can also contact them for more details if you have any questions, or consult a legal professional in your area. This video covers some more of the risks involved with renting your car on Turo or other platforms.
ROI (Return on Investment)
What happens if you crash a Turo car? If the renter gets into any issues with the car, they can tell you, Turo, or the police about it. The liable party that needs to pay for the damage on car depends on insurance coverage. Turo’s insurance, your personal insurance, or the renter’s personal insurance might cover the damages. Make sure to read the platforms policies before signing up. Learn more here.
How do you maximize Turo? To maximize your return on Turo, you can offer a better price or even a discount for first-time renters. You can also add extras like zero delivery fees and flexibility in your delivery location. You can also offer to clean the car for your clients at an extra fee after the trip and so forth.
How does Turo deal with insurance? Turo insurance is applicable in the USA and in Canada. All cars rented out on Turo are automatically insured in Canada through Intact. Make sure to read Turo’s insurance policies for more information. Learn more here.
How much money can you make renting your car on Turo? According to Turo, an Acura ILX 2018 can rent for 340 per month if rented 9.6 days per month in LA. In the same area, a Lincoln Contenential 2018 can make $594 if rented 9.9 days per month. And a BMW M6 Gran Coupe 2018 can make $1,254 if rented 11.6 days per month in LA. Learn more with Turo’s Calculator.