Today I Learned...
enting out your stuff is a great way to earn extra money, and it's easier than ever with online marketplaces. But before you sign up for the next rental platform, there are some things you should know.
Online marketplaces make it easy to rent out your stuff.
Online marketplaces are a great way to rent out your stuff. If you have things that you don't use but could be useful to someone else, an online marketplace can help you find a tenant for them. The best part is that these sites make it easy for both parties: the renter and the owner.
Online marketplace examples
One example of renting out your things through an online marketplace is pool sharing, available on Swimply.com—the first website that allows you to rent other people's pools!
If you have a pool, you may be considering renting it out to people who might want to use it. You can make some extra money this way and make sure that your pool is getting used.
Or another example is renting out your home on Airbnb, HomeToGo and so many more!
Renting out your things online is a great way to earn extra money, but you have to know what you're getting into.
Before starting, think about the following:
- You'll need to spend time taking care of your items and making sure they're in good condition. Are you willing to do that?
- If you're renting out a car, you'll have to pay for insurance for the duration of the rental period. Are you willing to cover those costs?
- Are there any restrictions on where your items can be rented? Do they need special handling or maintenance? Do they need special instructions?
While renting out your things can be tempting, there are legal and safety issues to consider.
If you're considering renting out your things—whether they're clothes, a car, or an apartment—here are some things to consider before you do.
Most states require that you register with the local government as a landlord if you're going to rent out your home. This is because landlords are responsible for maintaining their properties and must make sure they meet local codes. If you don't register as a landlord, then you could be held liable when someone gets hurt in your property's common areas or when they damage the property itself. In addition, if there's ever an issue with the tenant(s) paying rent on time or damaging something in the house, then it will be difficult for them to take legal action against you unless they know who owns the property and where it's located.
It is also important to make sure that any tenants have proper insurance coverage in case something goes wrong while they're living in your house or renting from you. Otherwise, if something happens—such as a fire caused by an electrical short—then those costs would fall directly on your shoulders!
Your earnings - and costs
Some people in the rental market do not earn as much as these hosts have, but Airbnb says that on average, US hosts earned more than $8k/month and Swimply pool owners make about $5–10K.
If you're doing things properly, you should turn a profit. "But the additional expenses associated with running a rental appropriately must be considered." The wear and tear that renting out your home can cause, along with the security risks associated with providing keys or codes to guests are just a couple of expenses that may come up.
Consider the taxes
If you rent out your home, musical instrument (yes, that's a thing at PianoPiano.com), or anything else—you generally have to pay income tax on the money you earn from renting it out. However—depending on what type of rental activity you engage in and how much time you spend doing this—you may be eligible for deductions.
The experts advise that you create a separate bank account for tracking rental income and expenses, and speak to an accountant early on in order to learn exactly what your tax liability will be.
With a whole slew of services ready to help you rent out all the things you don't use, it's certainly a viable option for earning some extra cash.
However, deciding whether or not it makes sense for you will take a little bit of research, but rest assured that if you own something worth renting out and you post it in an area where there is demand, you'll probably be able to find a renter willing to pay.