Technology has changed the world. Today, you can get services and goods delivered to you with your smartphone. Services like Uber and Lyft make it possible to hail a ride with your smartphone. It’s also possible to offer your home and vehicle to renters to make their commute cheaper and easier and earn you money on the side.
Turo is a company that allows you to rent your car out to other people. This guide will show you exactly how to make money on Turo, explore the pros and cons of participating on the platform, and give you some top tips on how to maximize your profit. If you want to earn six figures in 2021, our guide will help you get there.
What Is Turo?
Turo is a popular peer-to-peer vehicle-sharing platform. It allows car owners to rent out their vehicles for some extra cash. This also allows renters quick and convenient access to vehicles of different types at cheap rates. If you’re going on a long trip or have a second car you don’t use often, hosting on Turo is a good way to make money on the side.
Turo helps people rent all different kinds of vehicles, including Teslas, pickup trucks, saloon cars, and even luxury vehicles. The service is available in the US, Canada, the UK, and Germany. It also allows renters under 25 years of age to hire vehicles, unlike traditional car rental companies.
How Does Turo Work?
Turo connects local car owners to people who want to rent a vehicle in the area. Renters only need to download the app on Android or iOS or visit the website to search for vehicles near them. Hosts register and wait for requests for their vehicles. Turo hosts can choose different plans that dictate what percentage goes to them and what goes back to Turo.
How Much Can You Actually Make on Turo?
According to Turo’s official website, the highest earnings are about $1,365 per month. The amount depends on your vehicle and type of insurance, with the Porche Boxter earning the highest. To get an accurate idea of what you can earn, Turo offers a “Carculator” where you can input your car model, manufacturer, and location for an estimate.
Other examples from the same Turo report linked above show vastly different earnings between car types. Hosts with a Fiat 500 earn an average of $474 per month. Hosts with Chevy Camaros earn an average of $73 per day, and this means they can get around $755 on average per month. The more days per month that your car gets booked, the more money you can earn.
The Pros and Cons of Working on Turo
There are a lot of benefits of working on Turo. It is easy and can be a good way for your car to pay for itself. However, there are some cons that you need to consider as well before deciding to work on Turo.
Pros of Working on Turo
- Great source of passive income. Working on Turo allows you to make money without working actively. A passive income means you don’t need to make any effort or dedicate time to make money on the platform. All you need to do is list the car and you’ll be paid by renters to use it.
- Insurance protection. Another benefit of Turo is its insurance protection from Liberty Mutual. The company offers five insurance plans for vehicles on the platform. This liability insurance covers hosts if renters damage property or cause bodily harm to other road users while driving.
- Lots of bookings. The service is quite popular, and you can get a lot of bookings if you live near an airport or a major city. Cars with affordable prices get booked more often. If your vehicle offers certain amenities and is good for off-road travel, you may also get a lot of bookings as well.
- Easy to use. Registering on Turo as a host is easy. The interface is user-friendly and very simple to navigate. You can use features such as editing listings, messages, bookings, and payment with ease. You can also set up rules for rental and the car’s availability so it does not clash with your personal use.
- Free to register and earn. To register on Turo, you do not need to pay any fee. There is no background check fee or any similar charge. You can simply register on the website and list your vehicle.
Cons of Working on Turo
- Interior wear and tear isn’t covered. As noted earlier, wear and tear is not covered by all insurance plans. This means that your car could wear out faster. If you sign up, be aware that your car will get worn out faster than if you keep it for personal use.
- Short time frame for damage claims. While Turo offers insurance for your vehicle, there is a short time frame to make claims for damages. You need to take photos before the renter takes the vehicle and after they return it. You have just 24 hours to report any damages to your vehicle, so you need to give yourself time to inspect.
- Exclusivity. Turo has an exclusivity agreement. This means that all cars listed on Turo cannot be listed elsewhere for rent. Such an agreement can be a disadvantage if you plan to work with other car-sharing platforms. Hosts who fail to comply with this agreement could be charged a fine or have their accounts closed.
- Large commission fee. Another main disadvantage of Turo is its large commission fee. According to its official website, Turo takes between 15 to 40 percent of a single booking. However, the exact figure depends on the protection plan. Hosts who choose to use their own protection plan are only charged around eight percent of the booking fee.
- Poor customer support in certain cases. Turo is reliable when it comes to customer support for simple things like late pick-up or return. However, the process to make a damage claim can be frustrating. You will be asked to open a ticket for your claims and wait for a response via email. This may take a long time to get resolved.
How to Become a Turo Host
Becoming a Turo host is straightforward, but you need to start by making sure your vehicle is eligible. You cannot list motorcycles, passenger vans, and any other vehicle that is not suitable for the highway. You also need to make sure you have your vehicle identification in order before you start. Once you’re ready to apply, you can become a Turo host and follow the steps below.
If your vehicle meets all the requirements above, you can register on Turo. When the account is created, you can list your vehicle with the option “list car” on the page. You will be prompted to add information about the vehicle, including the make and model, photos, plate number, and whether the vehicle has an automatic or manual transmission.
When this is done, you can choose to set your own rate or use the automatic rate Turo recommends for you. Bear in mind that the rate is per day and not per hour. Renters pay a full day’s rate.
2. Select an Insurance Plan
The next step is to choose an insurance plan from the five Turo offers. The insurance plan you choose will determine how much of the booking fee you can retain. In most cases, you will be able to keep around 60 to 85 percent of the booking fee. Each plan covers reimbursement for 100 percent of repair costs if there is physical damage during a trip.
3. List Your Car
When you have chosen an insurance plan, you can list your car and add restrictions. For instance, you can indicate if you want the car to be driven only within city limits. When you get a renter, you can also choose where to drop the vehicle and keys off. You can also arrange for the car to be picked at the end of the trip.
Turo has a contactless checkout and check-in feature, so you can use it if you prefer not to interact with renters. After payment, your earnings are available through direct deposit. Payment is processed within three days for the first ride and three hours for subsequent rides.
How to Make More Money on Turo
There are a lot of ways to make more money on this ride-sharing platform. You don’t have to practice job interview questions or send out applications to start earning on Turo. If you have a decent car and follow the tips below, you’ll be able to make a good side income on this app.
Offer a Reasonable Price
If you live in a competitive area, you need to offer a reasonable price. If the price is too high, it may be difficult to get renters. However, you don’t want to price too low because you could be renting at a loss. Do some research to find out the best price to break even and get renters constantly.
Turo sets the price automatically using your car type and location when you register. This price adjusts automatically to reflect other factors, but you can also turn this off if you prefer. It helps to set up discounts to encourage repeat customers or charge excess distance and delivery fees.
List More Cars
Turo does not allow its hosts to list their vehicles on other ride-sharing platforms. However, you can still make more money by listing more cars on Turo. This way, you can double or triple your earnings according to the number of cars you have. Doing this is ideal if you live in an area with a great need for ride-sharing services.
Take Great Photos
To properly advertise your vehicle, you need to take great photos. Customers prefer professional photography to know what they are paying for. Hosts with professional cars will likely get more traffic compared to those with blurry photos.
Turo offers support and can connect hosts with professional photographers to take good photos of the car. You can arrange to meet the photographer and take showroom-ready photos to add to your listing. This could help you to attract more bookings.
Offer More Features
Customers may be more willing to choose a car that offers extra features. One way to take advantage of this is to add accessories that make driving it more fun, such as built-in GPS or satellite radio. These features increase your chances of getting rented.
Also, it helps to add other descriptions of features such as the measurement of trunk space for luggage or pickup truck towing capacity. Some customers will check specifically for those features. You can also add information about how to use the vehicle’s features to make it easier for renters.
Keep the Car in Good Shape
When your car is well maintained, it reduces breakdowns that could impact the customer’s experience negatively. Also, it increases the life expectancy of the car and can save you a lot on repairs in the future. If your car looks good and runs like new, you’re more likely to get repeat customers.
Is Working on Turo Worth It?
Yes, working on Turo as a vehicle host is worth it if you put in the effort and have multiple cars. It is an excellent way to earn money passively. Your car will be covered by Turo’s protection package, and you can use your personal insurance as well. It allows for safer vehicle exchanges and can even pay for your cost of ownership if you choose a high rental price.
According to Statista, the number of car-sharing users will jump from seven million to 36 million between 2015 and 2025. If you want to start renting your car on Turo, now is the time to do so. Although the average earnings aren’t as high as other sites, if you set a high daily rate, your monthly payment can be enough to pay the bills.
Making Money on Turo FAQ
How do you get approved for Turo?
Turo accepts hosts with cars not older than 12 years old, with the exception of vintage cars. Once you meet this requirement, you can register on their website and submit your driver’s license number, some parts of your social security number, and your home address and location. Turo will approve your registration if you meet the requirements.
Is Turo legit?
Yes, Turo is legit, and it offers a platform for car owners to put their cars out for rent. The service is ideal because it is faster, costs less money, and has fewer requirements than traditional rentals. However, the platform regulates the kind of cars listed and has some strict maintainable rules. It also offers liability insurance coverage for car owners.
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Where is Turo available?
So far, Turo is available in more than 5,000 cities around the world. You can use Turo in Canada, the US, and the UK. It is also available in major cities like San Francisco, Philadelphia, Los Angeles, Chicago, Washington DC, and Las Vegas. Renters can drive cross-country in some cases, such as from the US to Canada and back again.
Can you make good money on Turo?
Yes, you can make extra money on Turo. Since it is passive income, you don’t need to put in much effort to get paid. However, what you earn depends on the type of car you are renting out and the insurance plan you choose.
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