Many passive income ideas require capital to start. For example, strategies like dividend investing take a significant amount of money to generate thousands of dollars per month. Similarly, owning a rental property requires a considerable upfront investment to secure your property.
However, it’s a misconception that you need money to start making money. Thanks to the sharing economy, you can now generate passive income by renting out assets you own to everyday people.
One lucrative rental option is renting your car for money. Companies like HyreCar let car owners rent their cars on their marketplace, making it easy to monetize a potentially underused vehicle. If you want to turn your car into an income stream and empower other drivers to join the gig workforce, start renting your car on HyreCar.
What Is HyreCar?
If you’ve ever thought about renting out your car to make extra money, you’ve likely come across Turo, the king of the car-sharing marketplace.
Turo is popular for hosts and renters alike because of its size and variety. On Turo, you can list and rent almost any vehicle, meaning the platform offers everything from luxury vehicles to basic four-door sedans.
HyreCar is different. On HyreCar, drivers are gig economy workers who work for ridesharing companies and food delivery apps like DoorDash and Instacart. This means HyreCar drivers rent vehicles to make money, and rental affordability and vehicle reliability are what matters most.
This ultimately means that HyreCar vehicles aren’t flashy; you won’t find success by listing an Audi R8. Rather, HyreCar supplies affordable rentals to rideshare drivers and couriers who want to put some serious time behind the wheel. If your vehicle matches that description, becoming a HyreCar owner could be an easy way to boost your income.
How Much Does HyreCar Pay?
HyreCar lets vehicle owners set the daily rental price for your vehicle. You can also offer weekly and monthly rental discounts to encourage renters to book your car for longer periods.
However, how much you earn depends on several factors, including:
- Your vehicle’s model and year
- Competition between your vehicle and other HyreCar owners in your area
- Any perks you include for your listing, like increased mileage limits or if you deliver your vehicle to renters
Additionally, your HyreCar protection plan, which covers your vehicle while it’s rented on HyreCar, influences the percentage HyreCar takes from your rental earnings. Your rental income ranges from 75% to 85% per rental depending on your level of coverage.
In terms of average rental prices, HyreCar is quite affordable for renters. Examples of HyreCar listings in Los Angeles include:
- 2009 Toyota Prius: $22 per day
- 2010 Toyota Prius: $29 per day
- 2013 Toyota Prius: $31 per day
- 2016 Kia Forte: $39 per day
- 2020 Hyundai Santa Fe: $45 per day
- 2016 Honda Accord: $48 per day
HyreCar has a two-day minimum rental period and $20 minimum daily rental price for listings. This means a two-day HyreCar booking for a $20 daily rental would pay approximately $30 to $34 to you depending on your protection plan. If you charge $30 per day for your rental, you would earn $52.50 to $59.50.
Short-term rentals are an easy way to make extra cash. Plus, if you secure week- or month-long rentals, expect a few hundred dollars in additional income.
Vehicle Requirements and Maintenance
HyreCar vehicle requirements vary depending on your state. This is because HyreCar adheres to vehicle requirements for Uber and Lyft.
HyreCar’s vehicle requirement guide outlines state vehicle requirements for both Uber and Lyft. In most cities, requirements include:
- Being a four-door vehicle
- Being 10 to 15 years old or newer
- Being in generally good condition with no major cosmetic damage
- Having seating for five to eight people including the driver
- Not being a branded or salvage title
Vehicle maintenance is also your responsibility. According to HyreCar’s maintenance policy, owners are responsible for general upkeep of their vehicle. Upkeep includes basic car maintenance like oil changes, refilling windshield wiper fluid, keeping tires inflated, ensuring brakes are functional, and keeping a clean vehicle.
If mechanical failure results in vehicle damage, you’re liable, not your renter.
HyreCar owners require up-to-date personal insurance for their listing. Drivers purchase driver protection when they rent from HyreCar, which covers your vehicle when it is being driven for everyday use or between gig economy work.
However, when your renter is driving for a transportation network company (TNC) like Uber and Lyft, the TNC’s insurance coverage goes into effect rather than HyreCar’s coverage.
Between your insurance, HyreCar driver protection, and TNC coverage, your vehicle has coverage at all stages of driving. However, it’s important to remember that you have 24 hours to file any claim following the end of your rental period.
HyreCar Protection Plans
HyreCar has three protection plans: basic, standard, and premium. All plans provide up to $25,000 in physical damage coverage. Additionally, the basic plan provides minimum liability coverage in accordance with state law. Standard and premium plans provide up to $1 million in liability insurance.
Deductibles, reimbursements, and your earning percentage per rental vary depending on the coverage level you choose.
1. Basic Plan
Basic coverage has the highest earning percentage for owners. However, your deductible is higher and several reimbursement categories aren’t eligible for coverage.
- Rental Income: 85%
- Deductible: $3,000
- Cleaning Fees: Up to $30
- Gas Reimbursement: Up to 65%
- Mileage Overage: Up to 65%
- Impound Fees and Lost Keys: You’re responsible for all impound fees and key replacements
2. Standard Plan
If you’re willing to give up slightly more of your rental income for better reimbursement coverage and a slightly lower deductible, the standard plan is your best option.
- Rental Income: 80%
- Deductible: $2,500
- Cleaning Fees: Up to $50
- Gas Reimbursement: Up to 85%
- Mileage Overage: Up to 85%
- Impound Fees and Lost Keys: Up to 85% coverage for impound fees; no coverage for lost keys
3. Premium Plan
If a low deductible and 100% coverage on every reimbursement category is what matters most, the premium plan is the right choice. This plan mitigates more risk from renting out your vehicle, although your rental income takes a hit.
- Rental Income: 75%
- Deductible: $500
- Cleaning Fees: Up to $50
- Gas Reimbursement: 100%
- Mileage Overage: 100%
- Impound Fees and Lost Keys: 100% for impound fees and key replacement
It’s worth noting that 75% of rental income is still a generous share for such a risk-averse plan. By comparison, Turo’s protection plans range from paying through 60% to 85% of rental income, with deductibles being as low as $0 for the safest plan.
It’s not a bad idea to begin with the premium plan to experience the HyreCar rental process for yourself before taking on more risk. If you find you don’t tend to use the coverage and want to squeeze more earnings from your rentals, you can switch to a lower plan.
However, if you want to simplify life and keep a low deductible, stick with premium protection.
Considerations Before Renting Your Car With HyreCar
HyreCar relies on a combination of driver protection plans and TNC coverage to ensure your vehicle is always protected.
Additionally, the fact HyreCar rents to gig economy workers who are only interested in making money and working as efficiently as possible lends a small degree of reassurance that your vehicle is in good hands. After all, HyreCar drivers want to work fast and safely to boost their income, not race around the city on a joyride.
However, when you rent out an asset you own, it depreciates and carries risk. Before listing on HyreCar, consider some of the possible downsides and steps you can take to protect yourself.
1. Wear and Tear Coverage
HyreCar protection plans provide damage coverage. Plus, unlike many luxury cars you’ll find on Turo, HyreCar vehicles are typically cheaper models where depreciation can be less costly than with a more expensive vehicle.
However, wear and tear isn’t covered under any plan. Wear and tear includes scratches, dents, punctures, cracks, and dings under six inches in diameter. Window or windshield damages that aren’t the result of an accident are also exempt from coverage.
In short, if you rent on HyreCar, your vehicle inevitably incurs wear and tear over time.
2. 24-Hour Claim Window
A 24-hour claim window is fairly standard for car-sharing marketplaces. As an owner, you need to act quickly in the event of vehicle damage or a dispute over cleaning or mile overages. Taking photos before and after your rental period is also critical to protect yourself.
Damage claims take two to eight weeks to process and reach settlement, which is also worth noting. If you rent your only vehicle on HyreCar during periods you’re not driving, you’re taking a risk that your vehicle could suddenly be out of commission for several weeks unless you pay for repairs or a replacement vehicle immediately.
3. Calculate Depreciation
HyreCar has a 250-mile daily mileage limit minimum. If you rent to serious gig workers, this potentially means hundreds or thousands of additional miles on your vehicle each month. When you factor in other costs like vehicle maintenance and potential cleaning fees, your profit margins take a hit.
However, factoring in depreciation to your earnings is one of the most important habits to follow as an owner. If HyreCar’s rental income take and vehicle depreciation are too high, other side gigs like renting a spare room on Airbnb or renting out storage space with Neighbor are better passive income ideas.
4. Certain Cars Are Not Viable
Most HyreCar rentals list at approximately $20 to $40 per day. Older models of Toyota Prius and other reliable vehicles are common, and listing competition also drives rental prices down.
If you own a luxury vehicle or even a vehicle that’s relatively new, HyreCar probably doesn’t make sense. At the very least, compare rental prices between Turo, GetAround, and HyreCar if you’re not set on renting your vehicle to gig economy workers only.
How HyreCar Works — Listing Your Vehicle On HyreCar
If you want to become a HyreCar owner, the listing process takes four steps:
1. Create Your Listing
Once you sign up for HyreCar with your name, email address, and phone number, you gain access to HyreCar’s owner dashboard. You can access the dashboard through HyreCar’s website or an Android or iOS app.
As for creating your listing, the process is similar to that of Turo. The information you enter and upload includes:
- Basic Car Information: VIN, make, model, year, color, and mileage
- Personal Information: Name, address, phone number
- Pickup Location: Some HyreCar owners deliver their vehicles to renters, but you also set a default pickup location for your listing
- Car Photos: HyreCar suggests uploading several high-quality photos to create an enticing listing
- Legal Information: Proof of registration, your insurance policy, and a valid driver’s license
- Protection Plan: You select one of three protection plan options when creating your listing
You’re also responsible for submitting proof of inspection for your vehicle. Companies like Uber and Lyft require owners to submit a 19-point inspection, and since HyreCar renters drive for these companies, your car must pass the same inspection to be eligible.
Finally, you create a listing description to encourage renters to choose your vehicle. List any features that are selling points. Mileage is set to a minimum of 250 miles per day. You can increase or remove the mileage cap to further improve your listing. Note that drivers pay $0.25 per mile driven over their daily limit.
You also choose your rental pricing. However, it’s a wise move to conduct competitive research in your area and to price your vehicle competitively with similar vehicles.
2. Accept Rental Requests and Prepare Your Vehicle
As an owner, you approve any rental request; HyreCar doesn’t automatically rent out your vehicle without your permission. This ensures you only rent your vehicle when you’re certain it’s available.
Once you accept a rental request, the driver receives their rideshare insurance information that they purchase from HyreCar within 24 hours. Renters require rideshare insurance to rent on HyreCar, so this step means you have to wait up to one day from a rental request coming in to actually handing over your vehicle.
It’s also important to take photos of your vehicle’s interior and exterior for signs of damage and of the mileage gauge. You must upload these photos to HyreCar before pickup.
As for your responsibilities, keep your car clean to encourage renters to leave a positive review. You must also deliver your vehicle with a full tank of gas.
3. Vehicle Pickup
HyreCar’s app lets you message renters to arrange a pickup time. Some HyreCar owners offer delivery, but this isn’t required. To keep things simple, rely on the pickup location you use for your listing.
Once you meet your renter, confirm they have their insurance printed out. If they don’t have rideshare insurance, your vehicle isn’t covered in the event of an accident and HyreCar isn’t liable. You should also check the renter’s driver’s license to make sure their name matches their HyreCar account and insurance papers.
Renters often want to take photos and inspect the vehicle as well. This is ultimately a good idea because it means both parties have a record of your vehicle’s condition so there’s no confusion following the rental period if there are new damages.
If both parties are satisfied, you can tap “confirm pickup” through HyreCar’s app to officially begin the rental agreement.
4. Vehicle Drop-Off
Drivers can request a rental extension if they want to keep driving. As the owner, you can approve or deny extension requests. Extensions automatically charge the driver’s debit card or credit card for the additional days.
The driver is responsible for contacting you to arrange to return your vehicle. You can use the same location as your pickup location or choose a new location, date, and time.
You and the renter complete a vehicle walkthrough together to inspect for damage, total mileage driven, and the gas level upon drop-off. Vehicles must have a full tank of gas upon return.
You have 24 hours to report a damage, gas reimbursement, mileage, or cleaning fee claim. All claims require photo evidence.
Your protection plan reimburses you for any ticket and toll fees. However, cleaning, gas, and mileage overage reimbursement amount depend on your level of coverage.
If you want to make extra cash, most side hustle ideas require putting in hours of work. If you already have a full-time job or other responsibilities, this extra effort might be unrealistic or not pay enough to justify the labor.
Thankfully, more passive income opportunities are popping up thanks to the sharing economy. From renting out a room in your house to listing on HyreCar, if you have a valuable asset, you can probably generate income with it.
Just remember to factor in risk and depreciation anytime you rent something out. HyreCar is a niche peer-to-peer car rental marketplace with potential. However, only certain kinds of vehicles make sense on the platform. Furthermore, you need to understand your coverage and be comfortable with inevitable wear and tear from renting your vehicle.
If you have an older vehicle that’s underused, consider renting it out on HyreCar to create a new income stream. If your vehicle is higher in value, alternative marketplaces like Turo are likely a better option.