Rent out what you own: cars, space, tools (Turo, Neighbor, Fat Llama)

What you can rent out (and what it's really worth)

Peer-to-peer rental is the side hustle where your stuff does the work. The catch is that "passive" ranges from truly passive (someone's boxes sit in your garage for a year) to very active (washing a car between renters every other day). Below is the honest comparison for the most common assets; monthly figures are typical ranges, not promises, and depend heavily on your city.

Renting out your car on Turo

Turo is the big one. You list your car with photos, set a daily price (or let Turo's pricing tool set it), and guests book it for a day or a week. Your share of the trip price depends on the earnings plan you choose — Turo replaced its old "protection plans" with earnings plans in 2026, and in most U.S. markets hosts keep 60%, 75% or 90% of the trip price. The lower your share, the more damage protection you get: the 60 plan carries a $0 deductible for physical damage, the 90 plan a much higher one, with up to $750,000 in third-party liability coverage included across plans. Hosts on the highest-earnings plan can also capture more of the trip price on bookings made well in advance.

The cost side is what most first-time hosts underestimate. Every trip adds miles (depreciation and maintenance), you pay for cleaning and fuel top-ups between guests, and a single claim can mean weeks without income while the car is repaired. Vehicle rules generally require a car that isn't too old or high-mileage and has a clean title, and your personal auto insurer almost certainly excludes peer-to-peer sharing — you rely on Turo's plan while the car is on a trip and your own policy the rest of the time. Run the numbers on Turo's own earnings calculator for your ZIP code and your exact model before you commit, and treat the result as a ceiling. If you drive a Hyundai or Kia, note that an unrelated anti-theft defect settlement may reimburse you for theft-related costs.

Renting out space on Neighbor

Neighbor is the closest thing to genuinely passive income on this list. You list a garage, driveway, basement corner, closet or shed; a renter books it by the month to store boxes, a car, a boat or an RV; and you get paid monthly. Listing is free. When a renter pays, Neighbor withholds a processing fee of 4.9% plus $0.30 from your payout — $100 of rent becomes $94.80 — and that's the only host cost.

Two protections matter: a host liability guarantee of up to $1,000,000 (secondary to your own homeowners or renters insurance, and covering bodily injury and third-party property damage rather than damage to your own or the renter's property), and payout protection that keeps paying you for a period if a renter stops paying and their stuff has to be removed. Typical listing prices: $30–$100 a month for closets, sheds and small garage sections, $50–$150 a month for a driveway or garage bay for a vehicle, more in dense cities. Before listing, check your lease, HOA covenants and homeowners policy — storing a stranger's boat in your driveway is exactly the kind of thing they mention.

Renting out gear: Fat Llama is now Hygglo

If you searched for Fat Llama, here's the update: on November 24, 2025 Fat Llama merged into its Swedish parent, Hygglo, which now operates in the U.S., U.K., Canada and the Nordics. Everything works the same way — you list cameras, lenses, drones, audio gear, power tools, camping and party equipment; a verified borrower books it; you hand it over and get paid after the rental. The fee structure got cheaper in the merger: lenders pay a 20% commission (down from 25%) and borrowers pay a 10% fee (25% for higher-risk categories such as cameras), and Hygglo's guarantee covers items up to category-specific caps, with film and photo gear insured to a higher limit than general items.

Gear rental earns in bursts rather than a steady monthly figure: a mid-range camera body or a popular drone might go out a few times a month at $20–$60 a day in a city with film students and weddings, and sit idle elsewhere. The money is best for people who already own desirable equipment and would rather it earn than depreciate in a closet. Photograph serial numbers and condition before every handoff, and keep rentals on-platform so the guarantee applies.

Insurance, leases and the rules that bite

Every platform above offers some protection, and every one of those protections has holes. Read these three documents before you list anything:

• Your personal insurance policy. Standard auto policies exclude car sharing; standard homeowners and renters policies exclude "business use" and often cap coverage for property used commercially. Ask your insurer in writing whether they will still cover you, and whether a rider is available.
• Your lease or HOA rules. Subletting space, parking a renter's RV, or hosting short-term guests can breach both. Neighbor and Airbnb can't override your landlord.
• The platform's host terms. Know the deductible you chose, what's excluded (wear and tear, interior damage, mechanical failure on Turo; host and renter property on Neighbor's guarantee), and the claim window — most require photos and a report within 24 hours of the trip or rental ending.

Taxes on rental income from Turo, Neighbor and Hygglo

Money you earn renting out property is taxable income, but how it's taxed depends on the asset. Renting out a room or space in your home is usually reported as rental income on Schedule E, with a useful exception: if you rent your home (or part of it) for 14 days or fewer in the year, that income is generally not reportable at all. Car sharing and equipment rental with significant services (cleaning, delivery, handoffs) often count as a business reported on Schedule C, which means self-employment tax on the profit — but also deductions for depreciation, cleaning, platform fees, insurance and the share of costs attributable to rentals.

Paperwork: platforms that process payments issue a Form 1099-K only above $20,000 and 200 transactions a year (the threshold for 2025 onward), and a 1099-MISC/1099-NEC only above $2,000 for payments made in 2026 — so many hosts get no form and must report from their own records. Keep a simple log of rental days, income and expenses per asset. This is general information, not tax advice; the IRS's Topic 415 on renting residential property and our side hustle taxes guide cover the details, and a tax pro is worth the fee once you pass a few thousand dollars a year.

Renting things out is a slow, steady earner. If you want faster money alongside it, stack it with side hustles that pay while you wait or a plan to make $500 a month online — and check whether you're already owed something: the settlements directory lists open class actions like the TikTok privacy settlement that pay without proof, and Owed's free quiz files them for you.

Glossary

Earnings plan

Turo's term (from 2026) for the host plan that sets what share of the trip price you keep — 60%, 75% or 90% in most U.S. markets — and how much damage protection you get.

Deductible

The amount you pay out of pocket on a damage claim before the platform's protection covers the rest.

Host guarantee

A platform-provided protection (e.g., Neighbor's $1M liability guarantee) that is usually secondary to your own insurance and has specific exclusions.

Peer-to-peer rental

Renting an asset you own directly to another individual through a marketplace that handles booking, payment and some protection.

Schedule E vs. Schedule C

IRS forms for rental income (E) versus business income with services (C); C income is subject to self-employment tax but allows business deductions.

14-day rule

If you rent out your home for 14 days or fewer in a year, the rental income is generally not reportable and related expenses are not deductible.

FAQ