I'm seriously considering testing out 2 vehicles next year to have a little side income. We currently operate a single Vacation rental and it works as a great supplemental income to our regular 8-5 job. This past summer we had a couple of guests mention to us that it'd be nice if we also rented a vehicle due to the shortage in our area. With that said, I'm in a small tourist town in Alaska so during our busy tourist season cars and hotels get booked solid, which is why I think I'd always have demand.

I'm contemplating getting something like 2 gently used Nissan Versas or Hyundai Elantras to start my venture. Perhaps get them by the end of this year so I can hopefully get a few local rentals at cheap rates to have a couple of reviews so when tourist season hits the following summer I have some positive feedback that will allure customers. I've played with some numbers in excel at it seems I can keep a lower rate to boost my potential days/month rented. The difference between a daily rate of 160 vs 140 doesn't make as much an impact as you'd expect on the bottom dollar. The bigger draw would be to rent for 24 days a month vs 18 days.

My only caution is liability and what this opens me up to. Any insight from you all? Pros/cons?

I know someone who does this in Dallas, has a fleet of about 10 cars. It seems to do OK for him. Maybe try it on your car first to see if it works the way you want before you commit. I think downside for you in Alaska is that it is highly seasonal.

$30,000 Millionaire said:

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I know someone who does this in Dallas, has a fleet of about 10 cars. It seems to do OK for him. Maybe try it on your car first to see if it works the way you want before you commit. I think downside for you in Alaska is that it is highly seasonal.

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Appreciate the post but what's funny is you look at it as a downside and I'm looking at it as an upside . Similar to my vacation rental during our 4 to 5 month summer rush I think I can near fully book out and make all my profits during that time. Then I can relax and not "grind" so much. I figure if worse comes to worse I can always sell the cars locally and recoup most of my trial money. Not looking to get rich here but just supplement an income that I can throw into my investment funds.

Ive heard horror stories of car owners who end up getting screwed over by Turo if a renter damages your vehicle. Apparently Turo typically sides with the renter.

IMO, there are better/easier ways to make money.

In looking at what's available in BCS it seems $65/day is reasonable for a decent vehicle. I see a 2020 Dodge truck and a 2013 Jeep Wrangler at that price.

They say an average of about $10,000/year is possible with one car. If you rented it out 100 days you're seeing $6500 gross. They take at least 10% with virtually no coverage or 40% with 100% coverage. Say you went with a deductible at middle of the road 75% plan where they take 25% and you have a $250 deductible on damages. They'll take $1625 leaving you with $4875. Now figure your own insurance which is required. Say $75/month? Times 12 that's another $900 bringing you to $3975 for the year.

That's presuming you rent it out 100 days or almost every weekend, but you said it's seasonal.

I would hope the vehicle is paid for. Anyway that's my back of the envelope figuring. If personal insurance is higher and/or days rented lower, it will lower your take. And you have a depreciating asset that should probably not be leveraged in any way.

HTH.

Your number look about right except your assumed rate. I live in Alaska not BCS Turos here are comparable to going to vacations like Hawaii. You can expect $200+ per day frro budget or other name brand car companies. Turos here are 150-200.

Cool.