Car rental is a very lucrative part of car flipping once you do it right. Please do check the local laws to avoid troubles or fines. Put in an appropriate car rental insurance. Make your own research and get an appropriate insurance for your cars. Better to get a legal advice if possible.
Ask the renter to put a Comprehensive Car Insurance in his or her name for an extra cover for the car. Draw up a rental contract and check with your solicitor if possible. Ensure you are adequately protected.
Ensure car is mechanically safe and sound before it hits the road. Have a mobile mechanic to service the cars for you regularly.
Getting the right customers. Renting a car is like renting a business shop, if the renter is making money with the item, rental payment is guaranteed most times. If the renter is renting for leisure or just for personal run around, payment is not guaranteed. Be wary of people asking for an urgent pick up. Some people would deliberately come to rent to steal. Verify customer identification documents. Ask for three current ids with at least two showing the same residential address. If possible store credit or debit cards as well. Ensure customer can afford to keep paying for the rental car. If you suspect any trick or dubious behaviour do not let the car go. If you think something is not right then is probably wise to not rent to the person. Be very strict with your vetting. You must protect your cars against loss.
Do some background checks on everyone. Google the full name, you will be surprised what you can find sometimes. Better to rent to the people from reputable sources. As far as you are renting your cars to good people, you would not have much headaches.
Attach one or two working trackers, duplicate the car keys. If someone fails to pay or respond to messages you can track the car and go pick up. We have repossessed two or threes cars in the last 10 years.
Be professional, do not become too friendly with the renters as they can take advantage of this friendship to default in payment. Stored credit or debit card could be used for direct debit payments. Make it clear you can report the customer to the local Police if they default, you can involve debt collectors, you can cancel the registration of the car if customers do not pay on time. Send payment reminders timely.
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