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How to Rent Out Your Car In 2024 [Step-By-Step]

Learn how to rent it out through peer-to-peer car rental platforms. We'll cover the basics, including which platform to choose, tips for listing, and what to avoid.

Key Takeaways

  1. Choose a peer-to-peer rental platform like Turo, HyreCar, or Getaround.
  2. Prepare your car by cleaning and maintaining it, and documenting its condition.
  3. Manage your rental business with clear communication, competitive pricing, and efficient booking management.
  4. Understand legal and tax implications, including income declaration and necessary permits.

Understanding Peer-to-Peer Car Rental

Peer-to-peer car rental offers a unique blend of affordability, flexibility, and convenience, setting it apart from traditional car rental services.

Unlike conventional rentals with limited fleet options, peer-to-peer platforms like Turo, Getaround, and HyreCar provide a wider range of choices and allow for more flexible rental periods.

This model facilitates direct rental transactions between car owners and renters, often resulting in a more personalized and cost-effective experience.

Brett’s Take: Thoughts From an Expert

While renting out your car can generate some good income, it is not entirely passive. It requires time for answering renter questions, pickups and dropoffs, cleaning, refueling, and maintenance.

Before you start renting out your car, take the time to understand the commitment so you know what you’re getting yourself into.

Also, take the time to research the local market and how it will impact your rental prices and demand for your vehicle.

Talking to other rental hosts in your area will give you a good idea of what you can charge, and how often you can expect your vehicle to be rented for.

Preparing Your Car for Rental

As a car owner preparing your vehicle for rental, there are several steps to take first.

Those can include maintenance checks, cleaning, and documentation. Carrying out these steps ensures you attract the right renters.

Here’s what a well-maintained and clean vehicle should check:

  • A vacuumed carpet, wiped down windows, a nicely scented interior, and a shiny exterior.
  • Oil level, battery health, and the engine air filter should be in optimal condition.
  • There shouldn’t be any alignment issues when driving the car.
  • Verify the condition of your tires and their inflation levels.

Your car is prepped and ready—now, it’s time to list it on one of the popular car rental platforms that we go through below. We’ve also included tips on creating an attractive and honest listing.

The Best Ways to Rent Out Your Car (Overview)

Our Pick

Best prices and platform

Our Pick

Great selection of high-quality vehicles

Also Great

Budget alternative that is also great

We’ve included an overview of our top picks below. For detailed information on each pick, scroll down.

  1. Turo
  2. Hyrecar
  3. Getaround
1.  Turo

1. Turo

  • Easy account setup, user-friendly platform
  • Flexible earning potential. You can choose your own commission plan
  • Cost-effective savings on insurance
Read More

With personal car rentals, Turo is the way to go. It’s the top car-sharing company nowadays due to the ease of setting up an account with them. Turo has a thorough review system too, with over 14 million users.

How much you will earn as a renter on Turo will depend on the plan you choose. That could vary on average between 60-90%.

They also offer significant savings on insurance expenses to reduce the financial burden on you.

Even better, the pick-up and drop-off experience is smooth with Turo, ensuring a personalized approach.

The drivers handle it all together—as a renter, you only need to leave your car behind in a parking lot or garage.

A basic list of requirements – to name a few:

  • Meet insurance requirements set by Turo
  • Upload vehicle insurance and registration
  • Set up a profile for your branded-title car
  • The car should be no more than 12 years old and has covered less than 130,000 miles
  • The market value of your vehicle should be at minimum $200,000
  • Put up photos that show your car is in excellent cosmetic condition
2. HyreCar

2. HyreCar

  • Customizable pricing and flexible commissions
  • Gig rental flexibility and peace of mind while renting out your vehicle
  • Nationwide reach means potential for significant earnings
Read More

As with Turo, you can determine your pricing beforehand with HyreCar as well.

Depending on which plan type you choose, the car-sharing service will take a percentage as commission.

Gig rentals with HyreCar are rather flexible. Users choose how long they can rent a vehicle, with the choice to extend the rental times.

This feature can be beneficial for car owners, too. HyreCar also offers peace of mind through rideshare insurance.

On average, renters through HyreCar stand to make around $12,000 per year in additional income.

The service has a wide reach as well. It’s available nationwide, across multiple cities in the US.

Some standard requirements for HyreCar include:

  • Your car must be 15 years old or newer
  • HyreCar accepts only 2-door or 4-door cars
  • Provide vehicle insurance, registration, and proof that the car has a clean title
  • There shouldn’t be any physical damage, missing pieces, or commercial branding
3. Getaround

3. Getaround

  • Scalable, allowing hosts to manage one car or an entire fleet
  • Great business management support and assistance
  • Large user base. 1.5 million users in America, and growing in Europe
Read More

Getaround is a risk-free car-sharing app that allows you to upload anything from one car to a whole fleet if you like.

In other words, you can create a strong-standing rental service business in no time.

The Getaround team helps manage your business with you along the way, too.

You can set your own hours, work remotely, and not worry about fixed costs. There’s no admission or exit fee, either.

With Getaround, you get to connect with around 1.5 million users. The rental service is growing exponentially, now expanding in Europe as well.

A few eligibility requirements are:

  • Model is 2007 or higher
  • The car has covered less than 200,000 miles
  • Should seat at least 10 passengers
  • Have up-to-date tax, insurance, registration, and maintenance
  • Must have power door locks on both the passenger and driver’s side

Insurance and Liability Considerations

All peer-to-peer rental platforms provide auto insurance policies that’ll provide security for renters and drivers alike. The coverage of this insurance type will differ from one platform to another, though.

Some insurance models include liability protection and would extend to cover damages to your vehicle during the rental period. Others provide additional liability coverage as well with some limits and exclusions.

To protect yourself as an owner, make sure to review the insurance policies set by the platform. Contact your insurance provider too, as coverage for peer-to-peer rentals varies from one state to the other.

Pro Tip

Documentation of your vehicle’s state before and after renting will help if disputes arise. So, take clear photos of the car’s interior and exterior beforehand.

Managing Your Rental Business

If running a rental business is on your mind, choose a platform that’ll allow you a seamless experience and a user-friendly interface to work with. For instance, certain car-sharing apps offer tools that can help you manage your bookings effectively. 

Maintain a clear and open line of communication with your renters, too. Be as detailed as possible when giving out information regarding key handoffs, vehicle use, and emergency contact info.

Research the rental market beforehand as well. You need to set competitive prices and consider factors, such as the make and model of your car—and the unique features that each one has to offer its renters.

Legal and Tax Implications

Any extra income you make when renting out your car is still taxable. To maximize deductions, however, you can keep track of certain expenses. Those include maintenance and repair costs and insurance coverage.

As such, keeping thorough financial records helps immensely when disclosing the income you make off of renting your car. As for legal considerations, the required permits and licenses will depend on your state.

We recommend having a professional legally draft up a renting-out contract or agreement that your renters should sign beforehand.

Frequently Asked Questions

Who’s in charge of keeping the car clean?

You as the owner are in charge of making sure the car is clean and well maintained before every trip. However, you’re not responsible for renters trashing your car after their reservation.

There’s usually a fee that can be tacked on by the car-sharing company for the damage to an owner’s vehicle if they get an incident report about it.

Is gas an extra charge?

Gas for the trip you book is included in the main rental fee.

If your renter goes over the expected mileage, they’ll have to pay an additional fee to cover the gas and maintenance costs.

Other than that, some people may just see it as a courtesy to fill up the car before giving it back, especially after long trips.

What happens if the car breaks down during a rental?

Most car-sharing companies will cover mechanical failures that happen as a freak accident, but it’s your responsibility to keep your car in good working order between rentals.

If they determine that it was a preventable failure, you’re probably going to have to pay for it on your own. As an aside, not all companies will include roadside assistance in their insurance coverage. Be sure to double-check this before deciding on a company.

Does car sharing mean losing parking spots in my neighborhood?

Nope! According to the DOT in Washington DC, car sharing is actually a great way to reduce the traffic in high-occupancy neighborhoods. This could make parking a little easier for everyone.

Wrapping Up

Renting out your car is as simple as uploading the necessary documents, performing regular car maintenance, and ensuring you meet the requirements set by the car rental company of your choice.

Remember to also perform your due diligence when picking protection plans, insurance coverage, and rental prices. Utilize our guide to help you with every step of the way!

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