Neighbor makes it possible for anyone with extra garage space, shed space, driveway space, attic space or spare bedroom space to turn it into passive income by renting it out for storage. Hosts and renters both need to go through identity verification on both ends while this platform also provides insurance (1 million for hosts and $25,000 for rental items) against damage or theft claims for both parties involved.
What Is Neighbor?
Neighbor is a platform that helps individuals rent out unused storage space to generate additional income. Neighbor was established in 2017 and based out of Lehi, Utah. Hosts (their name for storage providers) offer garages, driveways, attics, sheds or spare rooms within their homes to rent. Potential renters use an app to locate space to book. When booking is complete, both parties agree on terms for usage price and rent amount.
The app also allows hosts to list specific types of spaces such as boat, RV and car parking spots. The more details a host provides in their listing, the higher their chances are of getting booked. They may even include their personal story and background to make it more appealing to potential renters. For instance, if saving for vacation or sending children through college is part of their motivation, this information could be included as part of their listing.
Hosts can earn up to $1,500 monthly renting out their unused space on Neighbor. According to Neighbor, this figure exceeds what would be possible through traditional storage solutions. However, keep in mind that they take a percentage for each booking made on Neighbor.
Neighbor also offers liability coverage to both hosts and renters in case of damage or theft, though this secondary policy only covers what’s not already covered under their homeowner policy.
How It Works
Neighbor provides a convenient platform for listing spaces, by asking a few simple questions about your space, such as type of space, size and address. The website will provide the host with pricing tips and listing tips. Once created, potential renters will respond with requests for more information or scheduling tours of your space. You can either approve or decline such requests via the Neighbor app ensuring privacy and safety for both parties involved.
Hosts can make up to $21,000 annually by renting out their unused spaces on Neighbor. Plus, they’re protected with $1 Million in liability coverage and $25,000 worth of theft coverage for any items stored on their property. Plus, Neighbor provides a host guarantee as an extra safeguard against tenants who fail to pay.
Neighbor provides hosts with the potential to earn even more by taking advantage of its Smart Pricing feature, which automatically adapts your rental rates based on supply and demand in their area. Hosts can return to manual adjustments, as long as the space is not currently under a rental agreement.
Become A Host
There are various methods of becoming a Neighbor host, but one of the easiest and best approaches is using the free app to list and connect with renters. When listing, be sure to provide clear descriptions and pictures that help potential renters decide if your space meets their needs. Also remember that good communications between tenants is essential if you want repeated rentals!
Once approved as a host, Neighbor will perform identity verification checks in order to maintain user security and establish trust among its community. This helps create a more reliable experience while discouraging scammers or any inappropriate behaviors from using its platform. Furthermore, it offers both a $1 Million Host Guarantee as well as $25,000 Rental Protection Plans should damage or theft occur during rental transactions.
When pricing out rental fees it’s essential to remember any utilities associated with the space need to be factored in, as well as local market factors when setting pricing models. For example, a higher cost of living area may require you to charge higher rent fees, while providing features like security systems or climate control can attract renters more effectively.
Hosts can increase the odds of finding renters by making sure their space is clean, accessible and ready for use. Hosts should take photos to help potential renters better understand the space’s features.
Neighbor advises hosts to include in their listing an accurate description of their space as well as any special requirements or limitations (such as being able to store vehicles, RVs or boats) along with details on security deposits required, and the total amount due. It’s also wise to provide contact emails or numbers so potential renters can reach out with questions or concerns.
After receiving a request to book their space, Hosts must approve or decline it within 24 hours (or such other period set out in their terms). Upon approval, the renter’s credit card will be charged for the first month. This also ensures the submitted payment method is valid.
Hosts are solely responsible for determining their tax reporting requirements in consultation with their tax advisors and are required to disclose any applicable taxes in their listings. In the event that taxes go uncollected or reported correctly, Neighbor reserves the right to withhold such payments from future payouts according to Applicable Law.
Your income with Neighbor depends on a range of factors, including size and location. Features like climate control or security systems can command higher rent than others. You can get an idea of the going rates in your area by browsing listings in Neighbor’s app.
As soon as your reputation as a host has grown, expect steady income from your rental. Neighbor’s website and app automatically collect payments from renters, which are then deposited directly into your bank account every month.