Britons can earn thousands of pounds each year by renting out their belongings, however, an expert warns there are potential risks to be aware of.
Renting, rather than buying high-ticket items, is growing in popularity with consumers for financial and environmental reasons, meaning there is money to be made if people have something people may want to hire.
Dan Whittaker, personal finance expert at Little-Loans.com, has revealed four ways to earn money by renting out one’s possessions, as well as the risks to be aware of before taking the plunge.
He said: “Renting items is increasing in popularity and for good reason; it allows your possessions to be reused and enjoyed by others while providing you with an additional source of income.
“However, it’s important to consider the potential risks of renting out your possessions before embarking on a side hustle.”
Clothes
As the cost-of-living crisis continues, Britons are making more financial and economic decisions when it comes to their clothes.
Instead of buying an overpriced occasion dress to just wear once, many people are opting for renting websites to have the dress for a few days, for half the price.
Websites like By Rotation and My Wardrobe HQ give people the freedom to list their designer clothes and decide on the rate they want to charge and the duration.
Mr Whittaker explained it works best if people have exclusive designer and mid-luxury occasion wear that people can’t justify buying to wear just once.
He said: “On My Wardrobe HQ, renting a bag has an estimated range from £4 to £116 for a day, averaging at £60. They change a 40 percent commission rate; so, if you were to rent out a bag for £36 a day, after commission, at a rate of once a week, you could be expected to pocket around £144 a month, £1,728 in a year.”
He warned, however, clothes and items can come back damaged or broken and the renter can be required to pay people an additional fee. People also need to factor in the dry-cleaning costs of the rented clothes.
Estimated annual earnings: £1,728
Vehicles
Those who own a car, motorcycle, bike, or van may have a potential side hustle on their hands. Peer-to-peer car rental companies are service-built to help people rent out their vehicles to other drivers.
Mr Whittaker warned the dangers of lending one’s vehicle to a complete stranger are extensive, so weighing up the pros and cons beforehand is vital.
He said: “Read the terms and conditions of any website thoroughly before deciding to list your car.
“Renting your vehicle is bound to increase its mileage, which reduces its value over time. You may want to take this into account when considering this side hustle.”
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The data, from popular online parking portal YourParkingSpace.com, revealed that total income varied across the country.
One homeowner in Cardiff, Wales, banked just over £2,500, while another set of three unused spaces in Edinburgh, Scotland made nearly £7,000 for their owner.
Estimated annual earnings: £5,993
Car parking space
Mr Whittaker stated: “Owning a car parking space in a bustling city centre can be a goldmine.”
If households have a space going spare, they can consider renting it out. There are a number of websites available which allow people to list their space, including Your Parking Space, Just Park, and Place2Park. Even driveways can be listed too.
The amount people could earn from this side hustle will vary but, on average, the personal expert found that people could rent out their car parking space in Manchester City Centre from £105 up to £187.50 per month – this works out at an average of £146.25.
If someone were to permanently rent their car parking space over the course of a year, they could pocket around £1,755.
If they live in Central London, where parking is at a premium, there’s the potential for even more earnings. However, if someone lives in a more rural area the earnings could be much less.
One pensioner from West London made £1,100 in 2022 by renting out her parking space through JustPark. On average she makes around £200-240 a month.
She said: “I have the lowest rate in the area, so I come up first and I get continuous bookings.”
Estimated annual earnings: £1,755
Equipment and gadgets
Expensive items are “a great commodity” to rent out. People don’t want the commitment or expense of buying, so if someone already owns it and only needs it occasionally, renting can become attractive.
This includes gadgets such as cameras, drones, music equipment, and kitchen appliances. These are all high-ticket items that could be of interest to others.
Mr Whittaker said: “The Fat Llama app allows people to rent out pretty much anything, but be aware that they charge a 25 percent service fee from the owner.
“A Sony A7III camera is listed for £60 for a day on Fat Llama, whereas the cost to buy new is £1,799.99 at Jessops. This means, that after fees, you would need to rent it out 40 times in order to start gaining profit.
“Again, check the terms and conditions of any site before listing your items, particularly in regard to liability for damaged or lost valuables.”
Estimated annual earnings: £1,080
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