If you happened to live in or near Boston or San Francisco you might consider signing up with a new company that allows you to make money renting out your car when you’re not using it. RelayRide connects car owners with car borrowers who rent owners’ cars by the hour.
How much money can you make renting out your car? According to the company website, car owners are making $200 – $300 per month on average with top earners grossing over $1,000 per month. If you own a van, SUV, or luxury car you’ll probably earn more. Gas is included with the rental so you have to deduct your fuel costs from your earnings. Borrowers get 20 miles per hour free (and a maximum of 160 per day) and pay extra if they go over. According to RelayRides the average borrower is only driving 5.8 miles per hour.
How Do You Rent Out Your Car?
After you sign up (the process includes answering questions about your car and when you drive it followed by a phone conversation with a RelayRides rep) you create an online profile for your car. You set the hourly rate for your car. From the money collected, 15% goes to RelayRides and 20% goes to the insurance policy that covers borrowers using your car. Borrowers’ driving records are checked before they join and your insurance coverage is not impacted by renting out your car.
Borrowers reserve cars online. A device is installed in your car that tracks mileage, has a GPS to locate your car, allows borrowers to open the car (you leave a set of keys in the car), and disables the engine if someone tries to start it without a RelayRides reservation. It looks like right now the $250 device installation fee is waived for new members.
How To Make Money Renting Out Your Car
You’re likely to make more money by renting out your car in the evening and on weekends. When setting your rental rate you’ll want to compare your rates to what’s being charged by nearby members and stay competitive. Your car’s profile is also important – photos and a catchy name and description help. Borrowers can leave feedback about their experience with your car. Make sure your vehicle is clean and in good repair. Some car owners even leave treats for borrowers – water or candy for example. You’ll also maximize your earnings by spreading the word – the more people in your neighborhood that know about RelayRides the more money you’ll likely make by renting out your car.
RelayRides pays car owners monthly. There is no minimum required for payment.
Renting Out Your Car Is Green
Car sharing is green in more than one sense of the word. It’s environmentally friendly – RelayRides estimates that every car enrolled in the program keeps an average of 15 cars off the road. There’s green in your pocket too – RelayRides estimates that car owners annual earning potential ranges from $2,300 to $7,400.
That’s a nice chunk of change for a car that otherwise would be sitting idle. While right now RelayRides is a money making opportunity reserved for people in San Francisco and Boston it seems like a business model that will spread. There are already competing companies in San Francisco and car sharing may be coming soon to a city near you. Let’s hope that urbanites across the country will be able to make money renting out their cars soon.
Who would have thought that your car could make money for you? Sweet!