Rental Income is the same as having a normal business. When you rent out your stuff online and receive rental earnings for your item, you are effectively running an online business.
With every business there are certain goals and objectives and a primary goal for any business is to increase profits.
So for an online rental business, increasing profits would be increasing your rental earnings.
Not all of us are business-minded, nor do we know how effectively to run one.
But we all have something in common, we have unused items at home and a need for money. So why not make some earnings while we're at it?
1. The Process
For every order there will be the Rental Costs and the Rental Earnings.
But for every order, the costs will never be more than the earnings because of the minimum charge. Which means Owners will never be at a loss for any order.
Rental Earnings are only transferred at the end of a Completed Order. So if your rental period is 15 days, then you’ll get your earnings after those 15 days.
Likewise if your rental period is 60 days, then you’ll receive your earnings after 60 days.
2. Post Desirable Items
Add and Post Items that people actually want to use.
|What to Rent Out?||Why should I Rent it?|
|Your kooky or quirky clothing.||
Someone might have a fancy gathering, or a costume party coming up.
Your old clothing might actually still be in fashion.
|The latest and greatest tech gadgets.||People want to try and use the item first. Before they think of buying them.|
|That kitchen appliance gathering dust on your kitchen cupboard.||Someone has a craving for Lemon Meringue Pie, and they need your swiss knife blender to make it.|
|Piles upon piles of books in your personal library.||
Some books can’t be found online or in any bookstore.
But it may be sitting pretty on your bookshelf doing nothing.
Barbeque grill, deck chairs and tables, and an inflatable pool.
How often do you use it?
Make it work for you, and rent it out.
Twisted your ankle?
Your bicycle might get lonely.
|You have an unused TV?||Well rent it out! You’re not using it anyway.|
3. Competitive Pricing
The pricing is the first thing people actually see and the whole reason why someone rents instead of buying is because of the cheaper prices. So take advantage of that.
Try to make it competitive but reasonable.
If you have a high rental rate, try lowering your security deposit to attract renters’ attention.
If you have a high security deposit, try lowering your rental rate so that people actually see the value’s worth.
Check out the Rental Calculator on the Add item page for some recommendations on your rental pricing.
4. Add in Free Gifts and/or Accessories
As a thank you to the Renter, you could offer to add in a free gift or throw in some accessories to the item. As a token of appreciation to the Renter.
This could be from small gifts like keychains, a bag of cookies, a gift card, beauty product sample, or even a handwritten ‘thank you’ note.
To useful accessories like an sd card for a rented camera, a hanger and plastic wrapping for rented clothing, or a bookmark for your rented book.
In the end, you want Renters to feel they’re taken care of. Who knows, they might come and rent your items again, or even tell others about it.
5. Neat Packaging
A good first impression always wins. Prepare a nice and secure packaging for your item.
And make it so that it can be reused when the Renter returns the Item. So that they don’t have to buy and prepare new packaging.
This will help you in the long run as a neatly packaged item gives a good impression on your item and people would be more willing to rent it again in the future. Plus, it protects your item as well.
Read more on some packaging tips here.
6. Quality Service
Always provide the best service. In all of our affairs.
When renting out, arange and ship the package as soon as you get the ’New Order’ notification. Make sure the item is in functional condition, and is clean and fragrant.
Provide your telephone number, just in case the Renter needs to ask some help about your item. Provide packaging that lets the Renter re-use it, so that they won’t have to use new packaging.
All of this adds up. And everybody will appreciate it.
With every email received along the process of the Rental Order, you will get a small box that calculates what you will be getting as your Rental Earnings.
It looks something like this (example):
|Expected Rental Earnings|
|Full Rental Price||RM 100|
|(-) Owner Transaction Fee (inc. 6% Service Tax)||RM 10|
|(-) Shipping Fee||RM 10|
|(+) Compensation||RM 0|
|Net Rental Earnings||RM 80|
Now that you know how rental earnings work and how to earn them. You can start planning and preparing your strategy.
Maximise the potential of your underused items. Make them work for you.
How much you’re earning. And how frequent it is. Are all dependent on your items. Remember:
- Post It
- Price It
- Package It
And know full well that you’ll never incur a loss.
Talk to us! Ask us any questions you may have by selecting the floating chat button at the bottom right-hand corner of this page. We're available on live chat from 9AM–6PM on weekdays.
Alternatively, send us an email at [email protected][dot]com. We’ll get back to you in no time at all.