If you want your car to start paying YOU by starting your own Turo business, here’s a few tips on getting started:
1. Set smart prices.
Look at what’s available in your area, and set your price competitively (but not too low). You want to be priced just under your competitors, but not so much people think there’s something wrong. Use Turo’s custom pricing and calendar tools to set different prices on different days. We have found their automatic/suggested pricing to be far too low compared to the competition in our area. Maybe it will be more accurate when the COVID-restriction-induced rental shortage is over. Note that you may need to build taxes or additional overhead into your pricing.
2. You need to pay taxes.
Even though it is an online platform, you still need to pay sales taxes in accordance with your local government. In some places, Turo already has the app set up where it correctly charges the customer the tax as an addition to the total booking price. In most places, it doesn’t. However, even if Turo isn’t charging your customers tax (and even if it is), you still need to forward/pay that tax to your local government. Turo suggests building that extra percentage into your pricing. But, as a side note, part of that tax percentage SHOULD be paid by Turo, as they take a cut of the earnings themselves–instead they are making their hosts pay for their share of local taxes (in most places). Be ready to set aside a portion of your profits to pay taxes when they are due. Also know that you will need to pay federal income tax on your earnings.
3. You may need a business license.
To pay sales taxes from earnings, you may need to have a business license. You need one in the Juneau. Don’t let that stop you though! The State of Alaska (and I’m assuming others) makes the process really easy, instant, and currently free. If you are interested in going really legit and setting up an LLC or Corporation (a separate “entity” to own your business so it’s not directly in your name, usually for liability or tax reasons), you need to do that first. Otherwise, you can set up a business license as owned by a sole proprietorship (you).
4. Offer free delivery.
Seriously. It’s what people want. Hassle free delivery, usually to the airport or a hotel. If you can feasibly provide that service, just build in the extra cost to your pricing structure. It will help you get the most out of Turo’s search algorithms to get more reservations in the long run. Often times, we found that people are willing to give you a ride back home if you pick them up from wherever they need. Be ready to find another way home just in case, though.
5. Write a captivating, but realistic description.
You want people to want to book your car. But you also don’t want to set their expectations too high and end up disappointing them. Absolutely talk about all the cool features your car has. But ALSO mention any substantial flaws or hang ups. For instance, my Nissan Leaf is a nice dependable car. But it only has 60-80 miles of range. We paste this range everywhere so guests know what to expect. We have had a few renters who clearly didn’t read the description before renting, and were surprised about the range. Recovering a negative experience from a disappointed renter for that 5 star review is difficult, but manageable, and ultimately avoidable with good communication before your renter picks the car up.
6. Clean your car really well.
Nothing is more off putting than a dirty or smelly car. If you’re using an air freshener, try not to make it too overpowering. Thoroughly clean between every guest.
7. Take lots of really good photos.
Think of this as a photo shoot for your car. Park it somewhere with a nice backdrop on a sunny day and get those glamor shots. People want to see the outside from all angles, and at least 2-4 pictures of the inside.
8. Commit to your availability, and block off the dates you really need your car for yourself
The last thing any guest wants is for their car rental to fall apart. Please don’t cancel on guests. Not only does it prevent you from getting All-Star Host status and make your review section look bad, it ruins people’s vacations. Block off the days you need your car, and be able to commit to renting it out on the days it is marked as available.
9. Play with your settings
There are many settings that regulate when you can get bookings, when you can do pick ups/drop offs, how long you need between bookings to flip the car, and how much notice you need to rent the car to someone who is looking right now. Play with them until you find the right mix that works for you.
10. Communication and thoughtful touches go a long way
A five star review means a lot, especially in the first 10 bookings. It projects to potential buyers what kind of experience they are signing up for. It also influences your ability to achieve All-Star Host status. Being courteous and communicative with your renters is very important. Use the message feature in the Turo app religiously. Make sure you have a decent conversation with your guests before they arrive so they know you are responsive and dependable. Along those lines, if a guest mentions something special about their trip, you can provide local recommendations. I also recommend providing a universal phone charger in the car for renters. They will appreciate it.