Creating Passive Income Using The Sharing Economy
Andy Fleming writing on the shared economy…
All over the world, people are renting out their spare rooms thanks to the Airbnb platform. Others are earning as drivers through Uber or Lyft. The sharing economy allows you to create sideline income that can help you pay down debt, save for your homestead, or even replace your salary.
But possibly the biggest opportunity for passive income from the sharing economy is in renting out your car when you’re not using it.
The platform that makes this possible is called Turo (formerly known as RelayRides) and the potential benefits of using the service are substantial. On average, renting out your car for just nine days a month could cover the cost of your monthly payment and put a few extra dollars in your pocket.
If you want to create a small business, rather than just a side gig, you can buy a second car — or even a fleet — that you can rent consistently for a healthy passive income.
In fact, if you’ve got the cash you’d need for a down payment on a used car, you could start up your own “rental business” right now. Listing a few cars could allow you to pad your retirement account or even quit your day job.
Obviously, you’d need a place to store the cars when they’re not in use, and it helps to have a diverse range of vehicles that will attract customers of all sorts.
People who go this route usually try to own cars that meet a variety of needs. You might rent hybrids to ecologically minded consumers, vans to those who need to haul lots of people, and pickup trucks to folks with tools and equipment to transport.
There are car owners who have been using the service for years who have steadily purchased vehicles and rented them to cover the payments. Some have managed to acquire as many as 11 vehicles in less than three years and can now comfortably earn thousands of dollars each month.
Turo vets potential customers and won’t allow anyone to rent vehicles unless they’re over 21 and have at least two years of driving experience. If a car is damaged — or even stolen — Turo’s insurance kicks in.
Turo covers all cars rented under its service with a $1 million insurance policy. The company will even lend you a car to replace a damaged vehicle while it’s in the shop.
Although there have been reports of stolen cars, generally, car owners have come away satisfied with Turo’s handling of incidents. In fact, most people report Turo to be more helpful and responsive than the police when dealing with a stolen vehicle.
Randy Shear is a Turo user who operates a YouTube channel under the name Uber Man, where he details his experiences making money using ride-booking networks.
Randy had a small issue in which a renter was late picking up and returning his vehicle, requested a free pickup, went over his estimated mileage, and returned a dirty car with no gas. Randy remained calm and contacted Turo to report the issues. Turo recompensed Randy with $130 for the late return and $145 for the mileage and gas issues.
The original rental was supposed to net Randy only around $25, but when all was said and done, he made nearly $300 — more than enough to cover his monthly car payment — from one slightly inconvenient rental. The month this occurred, Randy was able to cover payments on two cars while renting out only one vehicle.
At the end of the day, Turo allows you to both save and earn money. Using the site is an excellent way to cover car payments and generate a passive income.
P.S. Discover how you can enjoy a more laidback, authentic, independent way of life in The Savvy Retiree Daily. Sign up below to have it delivered – free of charge – to your email inbox.
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