With the rising cost of living and inflation rates, it has become necessary for many Americans to take on second jobs or look for a side gig. Today, nearly 45% of people have a side hustle of some sort. However, this can take a lot of extra time and energy that you probably don’t have. So, why not put the assets you already own to work for you? Here are a few reasons you should consider renting out your assets for extra cash.
Uncertainty for the Future
Since losing my dad last year, it has been tough for my whole family. While trying to navigate our lives without him, I have also taken on the responsibility of helping my mom with his finances and taking care of their property. I’m learning just how much of a physical and financial responsibility this really was. And, we aren’t certain if it is feasible or sustainable in the long term.
In addition to my mom’s physical limitations and health concerns, she is also living on a fixed income. It takes a lot to upkeep an acreage. However, she isn’t ready to leave the family home just yet. So, we’re looking at other ways to recover costs and maintain the property.
The idea that seems most promising is renting out assets to earn passive income. It could be a good opportunity for extra income if we can clear out some space and get things working again.
5 Advantages of Renting Out Your Assets
After talking to a few family, friends, and neighbors, here are a few reasons why we may consider renting out assets from my parents’ estate.
1. You can turn a profit from assets you aren’t using.
The most obvious advantage is the extra income. There are online platforms that provide a new way for you to earn money by renting out things you already own. And, you don’t have to invest any more money into it. You simply post your items, and the site facilitates the rest, including liability coverage to protect your assets.
If you aren’t sure that you have things people would want to rent, do some research. You might be surprised what people are looking for. For example, you can list:
- a second home
- extra bedrooms for tourists or long-term renters
- office space
- parking spaces in urban areas or near attractions
- large outdoor spaces to host events
- unused land for animals or agriculture
- pools during the summer months
- any type of storage space (including closets, basements, attics, garages, and outbuildings)
- cameras and photography equipment
- outdoor gear and sporting goods
- designer clothing
- baby items
- extra bandwidth
- money through peer-to-peer lending platforms
And this is just a short list of the most popular items. If you have any of the assets but don’t use them regularly, then you may want to consider renting them out for profit.
2. People earn more than you might expect.
The second advantage is just how much more you can make. On average, miscellaneous household items usually rent for $10-$50 per day. Although these could bring you a few hundred dollars every month, others could earn thousands.
If you don’t believe me, consider these facts:
- Airbnb reported the average user made an additional $924 a month.
- HyreCar says it’s possible to make an extra $12,000 a year by renting your car.
- Designer apparel and accessories rent for hundreds of dollars per item per week.
- A garage usually rents for around $600 a month. A large storage space, such as my dad’s pole barn, would rent for at least twice that amount.
- Cash loans through peer-to-peer lending platforms earn an average of 5-6% on your investment. However, crowdfunding through real estate sites like Groundfloor can yield double-digit returns.
Although every investment comes with risks, it seems this is one side hustle that may pay off.
3. Most websites provide coverage for liability and property damage.
My biggest hesitation comes down to the risks that come with renting out your assets. These were my dad’s things. While they have value to others, we still want to show them proper respect.
When you rent things out, you expect to have maintenance and general wear and tear. However, we want to keep them in working condition. And if we decide to use the property, we don’t want to be liable if anything happens.
So, I was pleased to learn that most sites provide coverage for liability and property damage to protect your assets. Some sites like FriendWithA also run background checks to ensure you are dealing with trustworthy people. With these kinds of measures in place, my family is more likely to give it a try.
4. It’s a mutually beneficial arrangement.
Many items like tools and outdoor gear are expensive to buy, especially if you only plan to use them once. Although you may be able to borrow from someone, this isn’t always a great option.
On the other hand, many people who have these items don’t use them regularly. Not only does this take up space, but you also don’t get your value from them.
So, renting your assets is a mutually beneficial arrangement for both parties. In our case, my mom gets additional monthly income and the renters get a better price than if they rented from a commercial supplier.
5. It’s easier than other side hustles.
Every day, I see people making money through delivery and ride-share services. Others are earning extra cash from second jobs and other side gigs. But, the truth is that it’s tough. The average person puts in about 13 hours a week just to supplement their primary source of income.
Although she tries, my mom just doesn’t have as much energy as she used to. And she can’t commit as much time as it would require to see significant profits. But if she could rent out things she already owns, it’s a much easier way to earn passive income. And thousands of others are already doing it.
Things to Consider Before Renting Your Assets
While this may be a solution to my family’s financial problems, there are a few things to consider before jumping in head first.
- You need to find the right platform and make your listing as appealing as possible.
- Consider if the items you have are valuable to other people and what they are worth.
- If you market yourself across multiple platforms for maximum exposure, you’ll be more successful.
- Pay attention to the legalese in rental terms and protection policies to ensure you are covered.
- Be careful when renting to family or friends.
If you are smart and find a niche that doesn’t have much competition, there is huge potential for growth. With enough success, you may discover that reinvesting in additional equipment could be a very profitable move.