Hey everyone,
From my posts yesterday discussing my business as a Turo PowerHost, and my recent acquisition of a new G82 M4 Comp, I received quite a few private message asking me about my experience as a host. I figured I'd compile some of my thoughts here for you, as it seems many are interested in trying it out for themselves, but don't have much inside baseball on the topic.
First, I'd like to say my experience has been mostly positive. I've got to meet and connect with people across the globe. It's been a varied group of people that rent from me, but my cars/rates tend to attract traveling business folks, and well-to-do individuals and families on vacations. 99% of my guests are very thoughtful of my vehicles and treat my property with respect. I also work to command that respect and do my best to vet folks through conversation prior to the trips.
Like any business, it's had its challenges. COVID at first was NOT friendly to my business and there were times in the early months of the pandemic where it all almost failed. 80% of my business comes from Sky Harbor airport (I'm a 10min drive downtown Phoenix). I have had times where my vehicles have been grounded due to blown tires, some failed parts, and one unfortunate incident where a not so kind young gentleman took my 6 week old Audi Q8 off-roading and blew out both my rear shocks. That was a 6 week ordeal and, yes, Turo did pay for the damages.
That being said, there's been good runs of success as well. My recently departed Audi Q8 and newly acquired '21 Yukon AT4 were each rented for 28 consecutive days in February and March. The poor Yukon is gone so often I haven't had the opportunity to take real photos of the thing.
Income:
The all important question. Do I make profit or simply subsidize some of my cost? Most months, I make a healthy profit. I tend to look at the income per unit (car) rather than the entire outlay, simply because the business is still small (I prefer to keep it as such, which I'll explain in a bit). I need to determine the viability of each type/make/model of car I put to work. Some have done better than others, but all have been profitable.
You have to look heavily at your market and demographic. Phoenix renters are very different than those in LA or Chicago. Put in the time for research into make/model/rates.
Risks:
What's your appetite for it? Anything that can or has been done in a car is a potential risk. I thankfully (knock on wood) have had largely positive experiences with my guests. I am friends with Hosts that have had some horror stories. One gentleman had his car impounded by ICE during a seizure at the border - his guests were smuggling narcotics in a VW. It all comes with the territory. How attached are you to your vehicle? I for one have probably a healthier connection to my cars now, knowing they're depreciating assets that are income producing.
Flexibility:
What's your day look like? I have a work from home job (pre-COVID) where I mostly determine my own schedule. I'm 10 minutes from the airport where I charge handsomely for delivery. I have 3 different types of car wash within 5 min of me that offer everything from handwash/full service to traditional coin operated manual washes. I'm well setup to do this as a side business. Do you have a place to park all your cars you wish to rent? Do you want strangers showing up to your home and, if not, are you willing to pay $10-15/day for garage parking somewhere else to store the car? Can you afford the time to run out in the middle of the day to wash a car that was supposed to be brought back clean, and you have an hour turnaround time before the next renter shows up? All food for thought.
Growth:
I have chosen to keep my volume of vehicles low intentionally due to time/upkeep of my vehicles. It was always designed as a side business where I can enjoy and appreciate cars of my choosing, without the cost associated. Im a young man and I'd be wise not to invest all of my excess cash into depreciating assets.
There are a million questions to ask with a million difference answers. I do love talking about this and have a deep passion for service to this industry. I do help people create their own profiles/market their cars based on their lifestyle/goals as part of my own business.
You can find/follow me here:
Check out my car on Turo!
https://turo.com/us/en/car-rental/un...-series/945953