Well, thanks to peer-to-peer lending, you can rent out almost anything you own with minimal effort.
Here are the best apps for renting out stuff you already own and earning some serious passive income.
1. If you’re looking to loan your car …
You can list your car, receive rental offers, meet with your renter, and hand over the keys. Both Turo and Getaround offer you $1 million in liability insurance. The companies also cover the driver with roadside service.
If you have commercial auto insurance and waive Turo’s coverage, you could receive 90% of your driver’s payment. There are no fees for listing your vehicle — only if you rent it out.
Turo helps you calculate how much money you could expect to earn. If you rented out a $20,000 car 15 days a month, for example, the website said you’ll make $6,501 a year.
Not a fan of lending your car to a stranger? Another way to earn money without much effort is to advertise during your daily commute.
2. If you can offer your parking spot …
Maybe you need your car to get from point A to B each day. In this case, you could still earn some extra cash by renting out a parking spot.
If you have enough room out front or next to your yard, consider apps such as SPOT and AirGarage. Besides approving of your parking guest, you could name your price and even make the spot available for a period, from a day to a year.
AirGarage charges a 3% fee on each reservation for processing your guest’s payment. If you’re curious how much your parking spot is worth, try AirGarage’s estimation tool.
3. If you’re open to getting houseguests …
You probably know all about hosting on Airbnb by now. It’s the online community that allows you to rent out your property — from a spare room to your whole place — to guests across the globe. In exchange for free listings and $1 million in property and host coverage, Airbnb charges a 3% service fee on each reservation.
If you’re not comfortable with having strangers stay in your home, you could opt for short-term rentals. Using apps such as Splacer or Peerspace, you could rent out part of your home for purposes such as parties, conferences, and photo shoots. They come with the same level of insurance but charge higher fees of 15% per reservation.
4. If you have recreational vehicles to rent …
If you found yourself financing a recreational vehicle (RV) or boat once upon a time, you might welcome a way to turn these toys into some extra cash when you’re not using them.
Campanda, Outdoorsy, and RVshare are competing for your RV listings. They have adopted similar insurance offerings, security deposit measures, and fee structures, so you might lean on other factors when deciding where to list your ride.
One differentiating factor could be the audience for each site. Do some testing by acting as the renter. You might search for renting options in your local area to get a sense of demand and competition.
No mode of transportation is too slow to rent out. Spinlister said you could make up to $500 a month by listing your bicycle, surfboard, snowboard, or skis.
5. If you’re looking to lend your clothing …
Selling clothing is one way to make serious cash, but what about those pieces you’d like to keep? Like, say, your wedding dress. Borrowing Magnolia would be your go-to if your dress is less than 5 years old and cost more than $1,000.
Consider renting out other valuable garbs on websites such as Style Lend. Like other platforms, you could create free listings and pay a fee (20%) on each transaction. You’ll also need to box and ship items as borrowers rent them.
To avoid wasting your time, survey a site’s inventory to ensure you have the designer clothing, shoes, or accessories that’ll attract renters. Style Lend, for example, recommends that you list your items for 5% to 10% of their original retail cost. Do the math to ensure your profits would be worthwhile.
Take stock before you start renting out your stuff
But they’re not all created equal. Before you choose a site for your listings, consider these three factors.
1. Evaluate your insurance needs
If you happen to own a considerable amount of camera gear, for example, you might peruse the policies of ShareGrid or KitSplit before renting out the gear. ShareGrid requires gear owners to buy insurance up to the replacement value of their gear.
Other platforms, such as Airbnb, offer free in-house insurance policies. Consult your insurance agent to see whether it’d be wise to add more coverage.
2. Account for IRS taxes
Income earned by renting out your stuff is generally income taxed by the IRS. As such, expect to receive a tax form from platforms tallying your profits.
Plan for this tax burden by:
- Setting aside a percentage of your income to pay the IRS at a later date
- Increasing your rental price to grow your take-home amount
- Consulting a tax professional who can advise on how to handle this extra income
3. Compare platforms side by side
Finally, it’s wise to compare peer-to-peer renting platforms side by side. Judge each by asking the following questions:
- What are the fees per listing and per transaction?
- What is the insurance coverage like?
- What is the process of receiving and returning a security deposit?
- What are their user reviews like?
Hopefully you find a few sites worth your listings so that you can get started earning extra cash without driving around complete strangers.
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