Passive Level = Green

Recommendation: Enter with Caution

I started renting my car out on Getaround in 2014, a few years after they started. I had just moved to San Francisco and realized I could take the train to my job. That meant my car would be sitting on the street all day costing me money.

In comes Getaround. Who doesn’t want to get paid for doing nothing. I sit at my job while people simply rent out my car with an app. This is what I would truly call passive income – when things are working that is.

How it Works

Started in 2009, Getaround now has a base in over 300 cities and 7 countries. They keep adding more each year, so there’s a chance they will come to you soon if they have not yet.

Getting started with Getaround is easy! You simply go to Getaround’s website to see if they have a base in your city. If so, it’s an easy click to setup an appointment to have Getaround Connect installed on your car.

This is basically a GPS and electronic system that renters can use to unlock and lock your car. Getaround Connect is what makes it truly passive. Just remember to update your calendar if you need the car.

When a renter wants to use your car, they choose it from other nearby cars and automatically reserve it. You get a text letting you know someone will be renting your car and that you should make sure it’s clean, has fuel and the key is in the car. They also need to take a photo of the gas gauge and of the inside and outside of the car to record any damage. This protects you and lets you get reimbursed for any damages or fuel costs.

That brings us to insurance. Getaround has an umbrella insurance company that covers the renter and the car while it’s being rented. Renters can opt for various levels of service. This includes 24/7 roadside assistance for accidents, flat tires, or breakdowns, and a $1M insurance policy for comprehensive, collision, and liability coverage

In general this is great for you, the owner, but there are times you need to fight with Getaround. I’ll share more on that below.

The Good

• Renters have a daily limit of 200 miles, though be careful if you have a lease. (Oops one of my cars was a lease and miles add up fast!)
• You set your rate and can adjust to find the perfect amount.
• You can keep pets and smokers out of your car.
• The reimbursement rates are good. If the gas tank isn’t filled up, the car is left dirty or the renter gets a parking ticket , Getaround pays you back plus a fee for your troubles.
• Unlike Zipcar there is not monthly fee, so you likely get more users.
• Getaround occasionally has deals – see below (March 2020). You can see the increase in rental rates, but during this time someone got my car towed, crashed it, and got $800 in tickets. If you cannot proved who caused the issue you suck up the costs.

The Bad

• The more people who use your car, the more wear and tear there is. Think about those used cars for sale at the rental company and what you did with your last rental. Remember that Seinfeld episode?
• The Getaround Connect system sucks away your battery as it is always on and searching for a signal. You need to drive your car around regularly, if no one’s renting it. I’ve gone through a few batteries in the slow season and Getaround will not pay for them.
• Reimbursements are inconsistent. When I first started it was easy to be reimbursed if someone trashed your car, hit something, or got a ticket. Now it’s a tortuous process and you have to pay for it all upfront.

The Skinny

Getaround is one of the best and easiest passive income systems out there. Everything is done through an app and you can set the rate you’d like. Essentially your car is working while you are!

But to avoid losing money you need to be on top of your game. Inspect your car after every rental to prove to Getaround who caused any damage or expense. Drive it when not being rented to avoid the Connect software from sucking the life from your battery.