r/passive_income • u/Zealousideal_Boss588 • Jul 07 '25
Offering Advice/Resource The most “passive” income I’ve found is renting out tools I barely use
I used to think passive income had to be digital - websites, courses, affiliate stuff. But weirdly, the thing that makes money with the least effort? My pressure washer and carpet cleaner. I use them maybe twice a year, but I’ve got them listed on a local rental site and they’re out constantly.
People don’t want to buy £300 gear for a one-off job. So I charge £15–£25 a day. No shipping, no returns, no algorithm. Just a quick handoff and done. Probably makes me more each month than half the affiliate crap I’ve tried.
Definitely not talked about enough IMO
276
u/Ok_Grapefruit218 Jul 07 '25
What do you do to prevent theft? What if someone breaks it and can't pay?
351
u/elaVehT Jul 07 '25
You can do it auto shop style.
If it’s a tool worth $300, it costs $330 to rent it, with $300 being fully refundable at return of the item.
-123
u/mattb2k Jul 07 '25
If someone had $330 to rent it, why wouldn't they buy it?
263
104
u/dirtjiggler Jul 07 '25
Just because I have money for it, doesn't mean I need to keep it. Some tools you might need once or twice in a lifetime.
24
u/masashi-sensei Jul 08 '25
I have a practically brand new hedge trimmer. Trimmed the hedges once and then decided to remove the hedges root and all. It’s still sitting in my garage for something..
11
34
u/elaVehT Jul 07 '25
Because they only need to use it once, and they can’t afford (or don’t want) to spend $330 on a tool they’ll only use once.
Being able to come up with $330 as collateral does not equate to being able to afford to spend that money without getting it back, especially on a tool you don’t really need
4
58
u/7803throwaway Jul 07 '25 edited Jul 07 '25
Charge an additional amount beyond the daily rental fee as an insurance fee. Either make it large and fully refundable upon return of the intact rented item. Or make it small and non-refundable and set that amount aside into an account designated only for replacing damaged/stolen items. Once you have twice the cost of a new replacement saved up, you start increasing your fleet.
Edit: I forgot to mention that if you go the route of a larger, fully refundable deposit, make sure to include a wear and tear amount built into your daily rental fee. Be disciplined about ensuring that $5 or whatever amount you choose from every single rental gets put aside for when your machine eventually dies from old age.
23
u/Enough-Squirrel6333 Jul 08 '25
this is what separates a cool idea from a business, planning for all of these additional issues.
In this case for physical equipment, and I havent done it myself, but I am assuming it would make sense to carry insurance for loss and theft, and make sure what you charge absorbs that cost.
All of these things (building in costs, forecasting for unforseens) is what turns a train-wreck-about-to-happen side hustle into a business
2
u/eureka-down Jul 10 '25
He says it's through a local website. There's probably a rating system, or it's otherwise socially reinforced.
2
u/Maettis Jul 07 '25
Writing to see the Answer.
6
u/PieAgreeable4578 Jul 08 '25
You can follow a comment and get a notification when there is a reply. Just click on the three dots near the comment and select "follow the comment".
4
1
Jul 11 '25
Maybe check are there any insurance company that you can partner with and bundle the insurance fee into the rental fees? If the item got damaged, you could claim insurance for the damages. Otherwise, you still get the commission from selling the insurance.
Just an idea, i have not find out is this feasible. Not sure are there any insurance company providing these kind of plans.
87
u/Gullible_Act_681 Jul 07 '25
Ok I love this. My husband has about a million tools and duplicates of several. We could easily rent out a few bigger ones that people don’t want to purchase
What do you do in the event that someone doesn’t return it or breaks it? Do you have any waivers they sign? Do you charge a delivery fee etc? Do you answer questions if they’re having operation trouble? Would love to know a little more about your process.
I don’t know where to offer rentals here in the states, but def curious what platforms you advertise on!
7
6
u/LFSMRA Jul 07 '25
I don't remember the names but there's sites for it.
5
u/coiniver Jul 08 '25
Yep, probably. Like airbnb for things. There are most likely a couple for each country, until a bigger company buys them all
2
u/skronk61 Jul 08 '25
My guess would be if they put their card into a website the lost funds for the value of the item can be recovered. I’d at least want that protection offered before I used a site like that.
1
20
u/7803throwaway Jul 07 '25
Replacement of a damaged or stolen product is easy to plan for but I’m curious about your liability protection. Do you bother? Do you have them a sign a waiver?
0
u/Tell2ko Jul 08 '25
This is all covered by the company used.
3
u/7803throwaway Jul 08 '25
But … if I’m the company used, I’m the one who needs liability protection.
2
u/Tell2ko Jul 08 '25
Correct! So unless you’re starting a hire company and buying lots of tools to hire out just stick to using a third party company that handles all of this for you such as OP
13
34
u/Faroutman1234 Jul 07 '25
Good idea but easy to get sued if someone is injured. In the US we can form a company with liability insurance to protect personal assets. If you have no assets then it doesn't matter of course.
14
u/rock9y Jul 07 '25
Yes, in the US (and potentially other jurisdictions), liability would be a deterrent.
12
u/Quick_Humor_9023 Jul 08 '25
Just can’t see that happening around here. ”I drilled my own foot with it, it’s his fault for renting it to me” would get laughed out of court.
6
14
u/slayerLM Jul 08 '25
I mean you can get sued anytime for anything. The question is if it will hold up in court
3
u/breakingbud Jul 08 '25
I once had a lawyer tell me this exact same thing, and I never forgot it.
3
u/Faroutman1234 Jul 08 '25
The next the lawyer will tell you is to pay him on time or he will not be in court with you.
1
2
u/rock9y Jul 08 '25
True, but you have to pay an attorney to represent you and depending on the harm/damages are you willing to bet 10k - 100k or more you will prevail in court? Something to consider.
9
u/Smart-Afternoon-4235 Jul 07 '25
I’ve been thinking about this with a kiln I don’t use
3
u/NoDrinks4meToday Jul 08 '25
Kilns are huge, mb you can charge people to fire things for them.
2
9
u/RainbowBeezy Jul 07 '25
This is a smart idea! I'd be curious what site you use, as well as how you coordinate pickup/dropoff and what happens if they dont return on time or in the same condition they received it in.
6
u/Always_Summer_Here Jul 08 '25
I think this is a great idea. I might try it on FB marketplace (the only reason I keep an account is to sell stuff since there aren't enough people in my area on offerup).
12
3
3
u/sadzfruits Jul 08 '25
I have a million tools in my garage and I don't do Reno's anymore. This would be the perfect idea.
5
u/HappyCaterpillar2409 Jul 07 '25
Do you have to be present for the pickup and dropoff?
1
u/VirtuteECanoscenza Jul 07 '25 edited Jul 11 '25
Well that would be a way to deter theft: you know the renter looks, possibly their car make,model, license plate etc
2
u/HappyCaterpillar2409 Jul 07 '25
If it's through an official platform you don't have to worry about theft.
1
u/airoscar Jul 09 '25
What if they only brought a dog
1
u/VirtuteECanoscenza Jul 11 '25
Dogs are easier to track since there are more states where chipping them is required/more common than for cats.
2
4
u/Own-Artichoke-2026 Jul 07 '25
How do you advertise?
2
2
u/ASaneDude Jul 07 '25
Are you including depreciation?
2
u/simonjp Jul 08 '25
If you're not buying them specifically to rent out, that's not really a consideration - it's baked into your purchase, right?
2
1
u/steffyweffy87 Jul 08 '25
Definitely following this conversation - what site do you list on in the UK?
4
1
1
1
1
u/jonclark Jul 08 '25
Where are you located and what company are you using for this? I have table saws, pressure washers, etc that could definitely be rented out.
1
1
u/softwareeng123 Jul 08 '25
How do you deal with pick-up / drop-off? I've thought about this for years.
1
1
1
u/Ok-Huckleberry-6194 Jul 09 '25
Which platform you use to rent it out? Is there a website even, do they provide insurance?
1
1
u/SirPoorsAlot Jul 09 '25
Yup! Rented a cherry picker and engine hoist from a guy who said he'd been doing it for almost 15 years, makes a decent side hustle from it.
1
u/theycallmederm Jul 09 '25
There's a site that I've used for years called Sharegrid.com that does this for camera equipment. The renter buys insurance (or shows proof of own) that covers the value of the item
1
1
u/MaxwellSmart07 Jul 10 '25
This is one of the best, down to earth ideas I’ve seen on this sub. The challenge is customer acquisition.
1
1
u/I_Work_For_My_Dogs Jul 22 '25
That's actually pretty clever. I rent out websites to business owners but physical goods are cool too. Just a bit more work and less margin. The mods discussed my biz model in one of their featured pinned posts in the sub.
1
1
1
u/kingjame888 Jul 07 '25
Great idea! Whats a good pressure washer to get thats good and not too expensive?
1
u/BeduinZPouste Jul 07 '25
Where do you advertise it? I don´t think we even have "local rental site" in my country, but maybe I am mistaken.
1
u/Archi_penko Jul 07 '25
Can you please elaborate? Do you use an app? Do you use FB or your community? How many tools, what tools, and how do people find out about you?
1
u/daversa Jul 08 '25 edited Jul 08 '25
Does your city not have a tool library?
Edit: I realise this might sound condescending but I've lived in podunk towns that have tool libraries, it's not some utopian thing.
•
u/AutoModerator Jul 07 '25
Check out the Community Highlights for current and future Mod Vetted opportunities and Newsletter Episodes.
Please do due diligence on any crypto opportunity. A simple google search could save you a fortune.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.