Renting out your car is one of the best ways to make extra money. However, rental companies can be quite a hassle to deal with and many of them aren’t worth the trouble.
That’s where car sharing and rental services like Turo come in to offer unmatched convenience for car owners.
But before you list your car for rent on Turo, you might wonder, “Is Turo with it?”
In today’s guide, I’ll walk you through a comprehensive guide with everything you need to know about this peer-to-peer car sharing platform, including how it works, potential earnings, overhead costs to keep the service running, and much more!
Brett’s Take: Thoughts From an Expert
Evaluating Turo for car owners, it’s clear that its value depends on individual circumstances.
Turo offers flexibility and potential earnings, with income varying based on factors like vehicle type and rental frequency. However, it involves active management, including handling maintenance and interacting with renters.
While Turo provides more control than traditional rental services, it may not be as profitable due to its fees and hands-on nature. It’s a suitable option for those seeking flexible, occasional income and willing to manage the associated responsibilities.
Ultimately, whether Turo is worth it hinges on personal preferences and financial goals.
- Understanding Turo’s Business Model
- Potential Earnings from Listing on Turo
- Costs and Expenses Involved With Turo Rentals
- Insurance Coverage and Protections
- Managing Your Turo Listing
- Weighing the Risks and Challenges of Renting on Turo
- Comparing Turo with Traditional Rental and Leasing
- Success Stories and Positive Aspects
- Making the Decision: Is Turo Right for You?
- Frequently Asked Questions
- Wrapping Up
Understanding Turo’s Business Model
Turo is an online platform that is technically AirBnb for cars. In other words, it connects car owners who list their cars for rent with people interested in renting them.
The best thing about using Turo is flexibility. You can control when your car is available for rent by setting up your daily availability. As long as your vehicle meets the car requirements set by Turo, you can list it on the platform for free.
The primary source of income for Turo comes from the commissions the platform gets from rentals through the app.
Keep in mind that Turo, like Uber, doesn’t own any cars. In other words, the platform is entirely run by individual car owners listing their cars for rent.
All in all, Turo can be lucrative if you list a high-demand vehicle and manage your spending and costs right, including various insurance coverage options.
Potential Earnings from Listing on Turo
If you’re interested in listing on Turo, you might be wondering how much it’ll net you per month. While there’s no solid answer to this question, you can still have a fairly accurate estimation of your potential earnings with Turo.
Ideally, hosts renting their cars on Turo typically make around $300 to $2,000 per month through the platform.
The reason for this wide range is that there are several factors influencing your earnings, including:
- Type of Vehicle: Luxury cars cost more to rent than economy options.
- Rental frequency: High-demand car models are among the best cars on Turo. these cars do quite well because they’re rented more often and for longer periods.
- Your Daily Rate: Turo allows you to set your own price on the platform, but you need to keep your price close to the average rate of similar vehicles to stay competitive.
- Location: Renting cars in busy areas and tourist destinations typically cost more, increasing your income.
Besides considering these aspects, you can also use Turo’s calculator to have a more accurate estimation of your earnings.
Costs and Expenses Involved With Turo Rentals
Some expenses can heavily impact your profitability. Here’s a quick rundown of the most common expenses and costs you should consider while renting with Turo:
- Turo’s Commission and Insurance Plan: Turo will charge a commission fee that ranges between 10% to 40% depending on the liability insurance plan hosts choose.
- Servicing and Car Care: As a host, you need to keep your car eligible for rentals as per Turo’s standards. Expenses like occasional servicing and cleaning are optional, but highly recommended to maintain the appeal of your vehicle.
- Maintenance: occasional wear and tear is another expense you’ll need to take care of as a host. This one is also dependent on the insurance plan you opt for.
Overall, the costs and expenses involved with Turo can vary significantly, even on a monthly basis. However, managing these additional costs and choosing the most suitable insurance plan for you are the keys to maximizing your earning potential with Turo.
Insurance Coverage and Protections
As you can see, Turo’s insurance plan is a major aspect when it comes to expected costs and earnings, as it has an impact on both of them.
Turo partners with a third-party company (Travelers Inc.) to offer auto insurance coverage. All plans are covered by a $750,000 standard liability insurance.
The difference between the plans affects the deductible amount (what you pay out of pocket before insurance kicks in).
Simply put, the higher Turo’s share of the trip earnings, the lower your deductible will be.
High-tier plans also come with additional services and benefits, such as roadside assistance.
It’s also worth noting that Turo’s insurance isn’t mandatory, but having auto insurance is. For that reason, opting for Turo’s insurance is recommended to reduce your spending.
However, you’ll need to study the available plans to make an informed decision before listing your car.
Managing Your Turo Listing
Contrary to popular belief, listing your car on Turo isn’t a passive income, as you still need to manage various aspects, including
- Managing your car’s availability, especially if you’re also using it.
- Vehicle upkeep and taking care of your vehicle. This also includes the downtime associated with long repairs (some insurance plans cover it)
- Communicating with Turo clients (guests) for a smooth rental experience
As you can see, you still need to juggle various responsibilities as a host. This can be fine if you have plenty of free time.
However, if you don’t have enough to manage your listing, it may not be as profitable as you hoped, so it won’t be worth your time. The decision here is up to you, but you have to keep these aspects in mind as well.
Weighing the Risks and Challenges of Renting on Turo
Despite all its merits, listing your car on Turo is not without its risks. Here’s a brief overview of some of the common challenges you have to overcome as a Turo host:
- Car Damage: No matter how careful you are, accidents happen, and that applies to your renters as well. Car damage can be anything from simple scratches and dents to major issues like crashes and even theft.
- Needing a Ride: If you only have one car, you need to adjust your schedule so that you don’t need a ride on the days you rent it out to avoid additional expenses.
- Difficult Renters: Not all renters are the same. While Turo tries to set out rules for a smooth experience, some guests can have poor hygiene, deny damage, return the car late, etc.
- Legal Issues: Besides accidents, renters can run into all kinds of trouble while renting a car. Clearing out these issues can take time and affect your profitability.
As you can see, listing cars on Turo is a mixed bag, and luck plays a remarkable role when it comes to risks. That being said, Turo does try to screen its user base to reduce these problems.
Comparing Turo with Traditional Rental and Leasing
One of the key marketing points for Turo is that it charges you less than traditional car rental agencies.
While this is technically true, it’s not that much cheaper, especially if you consider insurance requirements.
That being said, Turo excels in having a further reaching market for your car, allowing you to get a consistent supply of renters whenever you need.
Turo’s flexibility also means you can control your daily rate and renting schedule to suit you if you need the ride.
As for rental agencies, they can fully manage your rental service and provide a more “hands-off” experience for you, which is the closest you can get to passive income with car rentals.
As a result, the choice between the two comes down to your personal preferences and circumstances.
Personally, I recommend giving Turo a try to see if it works for you, as they don’t bind you with long-term contracts like some agencies do.
Success Stories and Positive Aspects
Turo has been around for over a decade and has over 160,000 hosts, which proves its ability to generate reliable profits for many car owners.
The service offers remarkable flexibility and is highly recommended by many hosts specifically for that reason.
Many people also praise Turo for turning their unused cars into a highly reliable source of income.
If you don’t mind reducing your profit in exchange for peace of mind, you can even get a high-tier insurance plan with full benefits and coverage.
You can also join Turo communities to learn more about the best ways to make more money while using the platform, such as r/Turo on Reddit.
Making the Decision: Is Turo Right for You?
All in all, Turo is a legitimate platform where you can make a sustained income by renting out your car.
However, the service has its advantages and drawbacks, so deciding whether it’s right for you should depend on various factors.
For instance, Turo is perfect if you use your car occasionally and want a flexible rental schedule to suit you. It’s also ideal if you want to stay involved in the rental process.
Yet, some rental agencies and platforms out there can give you more money with different sets of benefits, such as fixed income or waived insurance fees. If that appeals to you, you should pick an alternative to Turo instead.
In both cases, you have to remember that renting your car will always involve some form of risk, so you still need to consider your choices carefully before making a final decision.
Frequently Asked Questions
How Do I Become a Successful Turo Host?
Being a successful Turo host is all about appealing to what guests are looking for. Keep your listing desirable by keeping your rental within a reasonable rate. Your car should be clean and well-maintained.
You should also stay friendly while communicating with guests. The excellent experience will encourage them to rate you positively, which makes your listings highly competitive.
Is Turo a Good Idea to Host?
Turo has plenty of positive aspects, such as offering high flexibility, a wide range of renters, and a decent chance for profitability.
However, it also has some drawbacks, such as needing consistent management, occasional wear and tear, and costly insurance.
The answer here depends on what you’re looking for, relative to the service’s pros and cons.
Wrapping Up
This marks the end of today’s guide about the Turo’s experience for hosts. So, is Turo worth it?
For most car owners who value flexibility and use their car occasionally, the answer is yes. Turo is easy to use and delivers what it promises, especially if you opt for a high-tier insurance plan.
That being said, it’s not the best when it comes to profitability, so you have to weigh the pros and cons carefully before deciding to list your vehicle on Turo.
