What would you like to rent?
There is a trend developing that is known as the Sharing Economy. With the economy in the state that it is, people are looking to save money anywhere they can. You can find a place to stay, a car to rent, a power tool that you need for a DIY project or anything else you can think of for rent on the internet. This "collaborative consumption" is making people with underused assets money and saving people who would rather rent than buy expensive items money. Web sites like Airbnb, Relay Rides and SnapGoods connect peer to peer renters to the goods and services they are looking for. It is no surprise that this trend started to take off after the financial crisis of 2008. Technology has made it easier for people to find these goods and services that they are looking for. I have used this type of website recently to book accommodations for an annual vacation that I take. I saved a significant amount of money over last year's accommodations that I can spend elsewhere.
There are some issues that have arisen which can be expected with any new type of business model. Some local governments are upset that people are renting rooms to people without paying the appropriate hotel taxes. Some people have even been evicted from their apartments for violating their lease agreements by renting it to others. Another issue is insuring property and cars that are rented to people. It took some time for these websites to find an insurance companies to underwrite them.
Information Technology has made it easier for renters to find out about their customers as well. In the past, this would be much more difficult. Today, you can look up your potential customers on facebook and other social media sites. You can also do an online background check to give yourself peace of mind before you hand over the keys to your home or car to a stranger.
Question: Would you feel comfortable renting your home or car to a stranger? Would you feel comfortable renting a room from someone you haven't met rather than staying in a hotel?
Sources: http://www.economist.com/news/technology-quarterly/21572914-collaborative-consumption-technology-makes-it-easier-people-rent-items
http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy
I wouldn’t mind sharing a car with a stranger. We share trains, buses, and airplanes with strangers all the time, why not share a car to commute to and from work or the grocery store?
ReplyDeleteBkassahun
I personally haven't heard of any of these sites, but I can see the good in it and the potential savings for people. But as you said, Big Brother always has their hand out and wanting their cut. I have used actual rental companies for machinery but would be willing to rent from an individual if it was mutually beneficial. I am actually renting a tiller and splitting the cost and use of it with my neighbor.
ReplyDeleteAs far as renting out a room, I'm not too sure I would feel comfortable with doing something like that. Years ago people were different, but now days I'm not too sure.
I rented my car out to a neighbor several years back, ok many years back, when I had a second car that I wasn't using. I did not know all the legal contract ins and out then, but I knew I needed to CYA. I had a basic contract that stated the price, term, limited usage, etc. It also had a provision the proper insurance with certain coverages be kept. Boy, was that a lucky thing. Third day in my neighbor ran over a restaurant sign that I guess wandered into the road and took off.
ReplyDeleteThe owner tried to come after me, they got the plate #, for the damages. I showed him the contract, and he went after my neighbor whose insurance took care of the liability. I got stuck for the collision as I did not need collision on this car.
But I agree. Just about anything is available for rent or lease. I think that if a person engages in this sort of activity on a regular basis, they should be make to collect and pay the taxes as it becomes a full blown business.
If it is a one off or an irregular type of transaction, then leave it alone.
I believe the renting out of homes and other goods is quite common (in other parts of the world). I want to say in Australia there are homes regular rented out to vacationers who ever needs them. Pretty similar to what we do now with public transportation. It wouldn't be too long (-10 years) before sharing living spaces and etc is the norm.
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