Rent out your car - become a Turo Host (Part 2)
In part 1 we looked at the advantages of car sharing on a peer to peer platform, which platforms there are and possible downsides. In this article we will show you how you can put your car to work on the most popular peer to peer car rental platform, Turo.com, what to expect when renting out your car to guests and some important things to consider before you start your car rental endeavor.
Requirements
The requirements for listing your car on Turo.com for Canada:
You must be 21 years of age
Your car can’t be older than 12 years
The mileage must not exceed 200’000 km
Your car must be registered and located in Alberta, British Columbia, Nova Scotia, Ontario or Quebec.
The car must have a clean title (never branded or salvaged)
Never been declared a total loss
Must be with an insurance provider that allows the car to be booked on a peer to peer platform (A list of insurance providers who allow peer to peer car sharing can be found here.
The requirements for the US are the same except that you can’t be located in New York (any other state works) and you are not allowed to simultaneously list your car on any other car rental platform while with Turo.
For the detailed list of requirements and the requirements in other countries check this page on Turo’s website:
If your car meets the above criteria you can get started to list your car on Turo.
List your car on Turo
First you will need an account with Turo:
Go to the Turo website and click on ‘become a host’: https://turo.com
Once there, click on ‘get started’, and then ‘sign in’ to create an account (if you’ve already booked a car on Turo, you already have an account and can login with your credentials). Here you have 4 options - you can sign up using Apple, Google, Facebook or your Email. Once you have created your account you can start listing your car.
Remember to also download the Turo App from the App Store or the Google Play store. You will need it later for communicating with your guests. For the purposes of listing your car, however, we recommend using a computer.
To list your car you will have to enter the following information:
Where your car is located (exact address)
Year, make, model and mileage of your car
Transmission type, vehicle type and the market value of your car
Profile photo (the picture of you that your guests will see)
Mobile number
Drivers license
What your goals are on Turo
Car availability
Car details
A selection of pictures of the car (a minimum of one is required)
Make sure to check the list of prohibited photos as well as tips on how to create a listing that attracts more customers:
https://support.turo.com/hc/en-us/articles/203991920-Listing-a-vehicle
https://support.turo.com/hc/en-us/articles/203991770-Hosting-standards-and-tips
Also check out Turo’s tips on making your listing picture perfect and presenting your car in the best possible way:
The extra mile
Now that your car is listed, it’s time to think about extras.
With ‘Extras’, you can improve your earnings and your guests’ rental experience. Depending on your location, your guests may be those who don’t have a car or need an extra car for a day or two to run errands, business guests who use your car for a business trip or, most likely, visitors from other cities or countries who want to explore and enjoy their time in your area. Think of ways to improve your future guests’ experience while in your region. We have a couple of National Parks nearby (Banff, Kananaskis…) that require visitors to have a park pass, so we offer a park pass as an extra so that our guests don’t have to stand in line to buy a park pass upon arrival. With ‘Extras’, you retain 90% of the set price, so it’s worth it to get creative and anticipate your guests’ needs to make some extra money.
Here are some ideas for ‘Extras’ you can offer:
Unlimited mileage
One way trip
Prepaid refuel
Pet fee
Child safety seat
Rooftop storage
Bicycle rack
Camping set (camping chairs, tent, table, portable grill, cooler…)
Picnic set with blanket, cutlery, dishes…
Outdoor games
Camera gear
Surfboard
Fishing equipment
With everything set in place, you can now sit back and let Turo do it’s magic. Your car is listed and you can wait for your first booking.
What to except, how does it work
Once a guest is interested in booking your vehicle, you will get notified by the Turo App with a message from the potential guest. Usually they will let you know what they intend to use the car for and how many passengers there will be. If not, we recommend you to ask them about the number of passengers (luggage and gear) to prevent any misunderstandings. Your car may be able to carry 7 passengers, but if they all bring a big suitcase, or ski or snowboard gear, it is not very likely that it all fits in your car. Make sure you are on the same page with your guests by asking these important clarifying questions. A quick phone call or message can save you and your guests headaches later on. Just imagine delivering your car to the airport to find 8 people there each with a big suitcase and additional hand baggage hoping it all fits comfortably in your car! (we’ve been there…)
Once the details are clear to both parties, you can accept the booking in the App. We recommend you to communicate with the messenger feature in the Turo App. This way you will have a ‘paper trail’ and documented conversations in case of any misunderstandings.
Car preparation
After the booking is confirmed you will need to prepare the car for its upcoming trip. At the latest, you will want to do this a couple of hours before your guest is due to arrive. You will have to clean the car inside and out, disinfect it, print the shared agreement that Turo provides for each trip and put it in the car along with the Incident Info Card and Proof of Insurance for the province in which you reside.
The car preparation can take from 1 to 3 hours, depending on the size and condition of the car and your location. Here in Calgary, self service car washes are closed when temperatures drop below -20 Celsius and washing a car by hand can take awhile… So, make sure you set aside enough time for the preparation of the car, and check the weather report if necessary to make sure that a stop at the car wash is an option.
Communication is key
Also, communicate with your guests before the booking begins so you are familiar with their itinerary. If they arrive by plane, request the flight details so you can track the flight and know about possible delays. Guests may be unable to contact you from within the airplane should a delay arise. As always, communication is key, especially for the delivery of the car and the return at the completion of the trip.
The delivery and return is one of the unique features of a peer to peer platform and a main reason for customers to pick your car over a car rental company - the car gets delivered to where they need it (of course, for a reasonable fee), something no rental company can offer. Make sure you check in with your guests one or two days prior to the trip start and one or two days before their trip ends, to let them know you are aware and ready.
Car delivery
On the day of the delivery, make sure the car is ready (cleaned, disinfected, gas and washer fluids topped up, shared agreement and other documentation inside the vehicle). Arrive in time to meet your guest and follow the instructions in the Turo app. The app outlines, in detail, what to do when you deliver your car to a guest. You will need to take pictures of the car to document its condition including the mileage and fuel level. Taking pictures before every trip is crucial so you can prove any damages that might occur during a trip. If you don’t provide clear pictures of the car from all sides, including the rims, glass and interior before the trip commences, you won’t be able to prove damages and any potential claims might be denied.
After documenting your cars condition with at least 10 pictures (you should complete this step prior to the arrival of your guest), you will need to verify the drivers license of the guest who has been registered as the primary driver for the trip. You need to ensure the drivers license is valid and belongs to the individual that booked your car. Once everything checks out, you can explain some special features about your car if necessary, hand over the key and send them off on their adventure.
Now comes the passive income part of being a Turo host - you are making money with your car while doing…whatever you like, until the day your guest returns. Of course, if you are an exceptional host, you will check in once with your guest during the trip to make sure everything is running according to plan, but that’s up to you. We recommend touching base with your guest at least once and then again one or two days before their expected return.
Car return and damages
On the day of the return, make sure you are at the arranged pickup location on time. This is particularly important if your guests have a flight to catch. Do a walk around of the vehicle to inspect the car. If you notice any damage, consult with the guest. Document the mileage and fuel level. As a last step, take back your keys, thank your customers with a hug, a high five or any other sign of appreciation, and send them on their merry way.
If your car comes back dirty or damage has been noted, feel free to leave the guest file open until you have had the time to clean the car and thoroughly assess the damage. This includes taking post-trip photos. You will have up to 24 hours to document the cars condition and report any damages. Once you feel certain that you have adequately assessed the condition of the car post-trip, you can close the guest’s file.
Any damage that occurred on the vehicle can be reported in the Turo app. Once your claim gets approved and you receive reimbursement, you can proceed with the necessary repairs. If there are additional costs that arise, you can file a supplement to receive additional reimbursement. You have 45 days after the initial claims payment to file any supplements.
It is crucial to reiterate the importance of making sure you have clear pictures of the car pre- and post- trip (see car delivery above) as this is your only means of proving any damages that occurred while your vehicle was out with a guest. It is essential that you take the time to document your vehicle properly or else you may find these costs coming out of your own pocket!
You also need to be aware that not all cases of damage will be covered. For example, any scratch, crack or dent that is less than 3 inches will not be covered and you will not be able to seek compensation for these damages from your guest.
Moreover, be aware that dealing with claims is not always cut and dry. You may not receive full reimbursement if the shop you choose for your repairs charges a higher shop rate or takes longer to complete a repair than what Turo deems necessary.
Check this article on what Turo considers vehicle wear and tear: https://support.turo.com/hc/en-us/articles/203990650-Wear-and-tear).
After two months as hosts, we had 6 trips between our 3 cars. Half of these bookings came back with damages - from scratched rims to windshield chips and cracks (which are quite common in Alberta). Most guests will admit to any damage and pay the associated repair costs, but there are also guests who will try to deny any wrongdoing, causing a great deal of irritation and frustration, not to mention damages that you may have to pay out of your own pocket (luckily you have the opportunity to rate your guests post-trip and can give a 1-star rating should you encounter any such guest) .
If you can’t resolve the issue with a guest directly, you can ask Turo to act on your behalf. This can be equally painful since it can be difficult to get ahold of someone at Turo and even then, it is not guaranteed that you will get the repair costs covered, as mentioned above. Moreover, Turo also charges a fee of $150 for each claim handled, so the more you can resolve directly with your guest, the better for all involved.
After the vehicle return you will have the opportunity to rate your guests. Likewise, they will be able to rate their experience with your vehicle. Neither party will see the others rating or review until both have been submitted.
Pricing and delivery options to consider
Turo allows you to freely set the daily price for your car. There is an option for automatic pricing which takes weekends and holidays into consideration, but we recommend setting the price for your car manually to give yourself maximum control. Keep in mind that Turo will take a 25% cut of the daily price. The only exception are Extras where you get to keep 90% of the earnings. What is important when you set the price of your car is to check if there are other cars with the same make, model and year listed to see what they charge per day to make sure your price is comparable.
You also have the possibility to set various discounts, from an early bird discount to discounts for longer trips. Turo gives you a recommendation to every setting in the pricing and discounts section. One thing to consider when you set the price of the car is its rate of depreciation. After 200’000 km, you should be able to replace the car with the earnings you’ve made if you’ve done your calculations correctly.
So, let’s say you have 200 bookings on a car and each guest drives the car for 1000km. That means you would have to make an average of $250 on every booking to make $50’000 before reaching the 200,000 mileage limit. This would cover a car that cost around $25’000 and the rest would cover maintenance, insurance etc. You also have to take into account that as the car ages, the more expensive maintenance becomes and the less you will be able to charge (because you will be competing with newer cars who are able to charge more).
When it comes to the delivery of your car you have several options. The standard setting is pickup of the car at your home location. You can also offer three delivery locations and one guest location. The three delivery locations are usually popular places in your city like airports or hotels, while the guest location is a radius you can specify in which you are willing to deliver the car for a specified fee (within our radius is a train station, so any guest not within our radius can still reach us by public transport). For longer trips, you can also offer free delivery. The free delivery and unlimited mileage options are popular among many guests.
Another important setting is the trip preferences. Here you can set the ‘advance notice’ and the ‘trip buffer’. In the ‘advance notice’, you can set the time (in hours) that you will have before a booking begins. You can do this for every location (home location, delivery locations, guest location). Make sure you leave yourself enough time to prepare the car and deliver it in a timely manner. You can set the advance notice from 1 hour to 2 days. The trip buffer allows you to automatically block requests before and after every trip, so you have enough time to prepare the car before a subsequent booking.
Set your business on autopilot
If you live in a city with lots of tourism or close to an airport, you could consider starting a rental fleet and setting it on autopilot. With 7 cars you could make an average annual income of $84000 and if you can outsource the maintenance, cleaning of the cars and administrative work (trip organizing, damage claims, repairs….) the business can run on autopilot.
https://turo.com/ca/en/small-business-ls
Pros:
Reduce the idle time of your car and make some money
Meet (mostly) friendly people and give them a excellent car rental experience
Generate quick income (depending on your location)
Possible to set on autopilot and start a small business
Cons:
Involves lots of cleaning and organizational work
Dealing with difficult and dishonest guests is a possibility
Vehicle damage can be upsetting
We list our cars also on Turo. Most of them have been to Banff many times and know the way. We offer a 5% early bird discount for bookings 7 or more days in advance, a 5% discount for any bookings longer than 3 days and a 10% discount for bookings longer than 7 days.
When booking one of our cars we will plant a tree in North America and issue you a Tree Gift Certificate (see here for more information)
2017 BMW X1 xDrive28i AWD (Midsize SUV, 5 Seats)
https://turo.com/ca/en/suv-rental/canada/calgary-ab/bmw/x1/1465539
2021 Toyota Highlander Hybrid AWD (SUV, 8 seats)
https://turo.com/ca/en/suv-rental/canada/calgary-ab/toyota/highlander-hybrid/1291151
2020 Toyota RAV4 Hybrid AWD (SUV, 5 seats)
