There are ways to make passive income without investing any money, and renting out your things is an excellent way to do just that. The idea is simple – you have stuff other people need, and they are willing to borrow it from you for cash.
How Much Can You Make renting out your stuff? According to FatLama.com, which is a site that allows you to rent your things online, you can earn “up to $3,000 a month renting out your stuff.” Their highest earner actually makes $6,726 /month according to their home page.
It’s never been easier to be put in touch with people interested in renting your things. The internet is crawling with startups and established platforms that allow you to rent peer-to-peer securely and easily. This guide covers everything you need to know when renting your things online, from ideas as to what you can rent to making this income stream as passive as possible.
How to Make Passive Income Renting Your Stuff [Guide]
One of the best parts of renting your things is that you already have them! There is no need to invest any extra money in order to get started.
Renting Your Things: No Need to Invest Money
Does renting out tools and stuff actually work? Many people are making decent passive income renting their things. A good quality camera can make you $100/day. Bikes can earn around $40/day. Drones rent for up to $90/day (DJI Phantom Pro). The potential to make money by renting your things is excellent, especially if you have multiple listings.
Most importantly, giving it a try is easier than most people think, and it’s not as risky as you would imagine. Thanks to peer-to-peer platforms that take on the verification process, transactions and customer reviews, you can rent your things with more peace of mind than ever before. Most platforms are free to join and only take a commission on each rental.
That is why renting your things is one of the easiest ways to make passive income without the need to make any extra investment. You don’t even have to do much, if anything at all. Here are some basics to make an income by renting your things to people who need them, and some steps you can follow.
Ideas For Things You Can Rent Out to Make Passive Income
Here are some ideas of things you may have around your home that you can rent out. We have some detailed guides for some of these things specifically (ad placement on your car, renting your bike and storage for example). Click on the links to learn more if you would like a more detailed guide.
- Ad placement on your car
- Bike/Electric Bike
- Collector car (for movie shoot)
- Fences (for events etc.)
- Fine art
- Fishing gear
- Games and consoles
- Golf Equipment
- Gym Equipment
- High-end clothing
- High-end shoes and bags
- High-end wedding dress / evening-wear
- Jewelry / Luxury goods (watches etc.)
- Parking Spot
- Party supplies
- Recording studio
- Scooter/Electric scooter
- Sound and light systems
- (DJ Equipment)
- Sports equipment (kayaks, paddleboards, skis, snowboard etc)
- Swimming pool
- Tent/Camping equipment
- Tools & Machinery
- Tractors & Farming
- Vending Machines
Pro Tips When Choosing What to Rent Out
To make decent passive income from renting your things, you should make a select list of things you are going to rent out. Here are some pointers that can help you out.
- How often do you use the item? For instance, if you use your power saw on a daily basis, then renting it out is probably not the best idea as it can affect your work. But if you are taking a holiday and know that you will not be needing it for some time, then why not make it available to someone who needs it. Just make sure that you do not rent something that you will actually need over its rental period, as you cannot contractually demand it back before the agreed time is over.
- Rent your things under conditions that ensure you are protected. Some of the people renting your stuff will not always be careful with them. So, your fancy dress might come back with a stain or tear, and it would obviously not be fair for you to bear the cost of such mistakes. Therefore, whenever renting anything, ensure that you are protected or are not too deceived in case things don’t work out as expected. On some sites, the borrower is charged the market value of the item in case they fail to return the item, which is quite reassuring. But one thing is certain, do not rent things that have sentimental value to you. If they come back in any condition that is not satisfactory to you, you will be disappointed and have a bad experience on your hands.
- How much return on investment (ROI) can you make? Some items make more money than others. For example, renting a blender is very low ROI compared to renting a high-end drone. Do some research once you have the items you would like to rent in mind. Search for them on the platforms and see how much other people are renting them for in other cities around you.
2. Sign Up With The Right Peer-to-Peer Rental Platform
There are a lot of things people can rent, but many sites choose to specialize in a few items. For instance, there are sites that will deal exclusively with bikes. We have a guide for bikes specifically, check it out here if you are interested in renting a bike. Other platforms handle clothes only. Some are made for renting your parking spot (guide here). So, depending on the items you are renting out, choose the best site in that niche and sign up.
We have listed a couple sites here, but there could be more. If a platform does not offer any services in your area, carry out a quick Google Search. There probably is one.
|Advertising on Car||Read our guide for full list|
|Bike||Read our guide for full list|
|Parking Spot||Read our guide for full list|
|Storage Space (Home)||Read our guide for full list|
The process is fairly similar for most platforms. If you already use the peer-to-peer platform AirBnB you will be familiar with the process. You may will probably have to provide some information about yourself and your items. Try to be as accurate as possible as the company will want to confirm some of this information so that you don’t misrepresent your product or its value.
In addition to making the process of renting your things easier, these companies offer other benefits as well. For instance, they vet the borrowers to ensure that they are legit people who are not likely to take off with your stuff. Through such checks, people with a history of petty theft are unlikely to end up getting their hands on your things.
3. Don’t Forget Your Insurance Policy
Many platforms offer insurance as part of their business model. They usually offer you some insurance options that can protect you in case the borrower fails to return the product, returns a damaged product, or brings back the wrong product.
However, some platforms just put people in touch and offer no support or insurance. Since you are giving out your stuff to total strangers, it is always a good idea to protect yourself by getting insurance, or by choosing a platform with good coverage, just in case. Be sure to read the platform’s policies before signing up.
4. Setup Your Rental Process to be as Passive as Possible
The most time-consuming parts of renting out your things will get your account verified, creating your listings and then managing them.
- Getting your account verified: This may take a couple days when you sign up. The platform may request to verify your identity using your social media accounts or drivers licence. It’s not that time consuming but it may slow down the process. To speed up the process, try to fill out your profile as well as possible. A more complete profile will also be more compelling to potential renters.
- Creating your listings: This entails taking pictures and writing a compelling description. It may take you some time if you are renting higher-end or more complex items like an RV. Make sure to add all information about the product, the condition, and specify if there are any defects or signs of wear to protect yourself against any fault by the renter.
- Managing your listings: This will take the most of your time – updating availability, answering people’s questions, meeting with them before and after the rental. However, there are some ways to reduce the time it requires.
- Here are some ways you can make managing your listings more passive:
- Availability: Prioritize renting items that you will not be using at all for a certain period (ex. Items you won’t use all Summer). That way you will not have to update your listings so often.
- Answering People’s Questions: Every time someone asks you something, add it to a FAQ section in your listing. That way if someone else has the question, they will get the answer before asking you again.
- Managing Rentals: You can put your items pad lock system (code) somewhere accessible on your property. That way, they can just come pick up the item and drop it back off without you needing to be present.
How Passive is Renting Your Things?
If done right, earning some money off your rented items can be very passive (see our suggestions above). If you won’t be using something for an extended amount of time, then peer-to-peer platforms can keep putting you in touch with people who need what you have to offer. You could even pay back the cost of the item and start making a profit from your rentals.
The startup costs for this business is very low. I you already own the item you are renting out, then you don’t have to spend a dime extra to start making money.
All things considered, renting out your things for money is pretty easy. Once you decide which items you are going to rent out, you only need to sign up with an appropriate peer-to-peer rental platform and offer your items to people who need them, in exchange for cash. These companies handle everything from vetting the people seeking these things to collecting the payments and passing them on to you. So, all in all, renting your things for money is pretty easy.
Renting things does not require a whole lot of time. You will just need to take time to setup your profile, create your listings and then manage them. Follow our suggestions above to make this more passive and reduce the time you would need to invest. In that case, the item will simply be rented out to those who need it and you will get paid for your services as you go about your life.
Of course, there is some risk involved. Not everyone renting things will be trustworthy. Some may misuse your things or even lose them. That is obviously a risk if the things had some sentimental value beyond the cash benefits you were enjoying (avoid items with sentimental value). But otherwise, with the right rental company, any loss or damage will usually be insured and you should get compensated for your loss.
There could be some seasonality issues related to renting your items if your item is seasonal. For instance, if you are renting out your bike, you can expect more action during the summer when the weather is more permissive for bikers. But over the winter, rentals may slow down or even come to a temporary stop. But for things that are not affected by seasons, you can expect an all-year income off your items, within reason.
Renting your items is not scalable. Once you rent out what you can, you will have reached the limit of scalability. But if you are just looking for a way to supplement your revenue (and not replace your 9-5 with this and make it into a salary) then this is a great supplemental passive income source.
ROI (Return On Investment)
The ROI on this passive income method can be pretty good, especially if you rent high-value items that are also in high demand. You can make hundreds of dollars off an item and still have it retain its value. The low initial investment required (if you just use stuff you already have around your home) also provides potential for high ROI.
What kind of things can I rent out? There is practically no limit to the kinds of things you can rent on peer-to-peer rental platforms. You can rent:
- Electronics (tablets, cameras)
- Sports equipment (surfboard, gym equipment, fishing gear)
- Power tools
- Ad placement on your car
- Bike/Electric Bike
- Parking space
What if I don’t get my things back? On most peer-to-peer rental platforms, if a renter does not return items they rented, they have to reimburse the owner for the item’s fair market value. Therefore, choosing the right platform to rent your things on is important. These companies screen the renters, and can even report them to authorities if they steal other people’s things.