How to rent out cars: instructions and tips

Q: Can I reserve a car in advance?

Yes, you can reserve a car for your desired date in advance. Booking early allows you to choose your preferred car class and be sure it will be available on the day you need it.

Q: Can the lease term be extended if plans have changed?

Yes, the rental period can be extended provided that the vehicle has not been reserved by another customer. To do so, simply contact the manager in advance.

Q: Is it possible to travel outside of Kyiv or the region?

Yes, you can drive outside of Kyiv and travel around Ukraine. The terms of the trip are agreed upon when the rental is arranged.

Q: What should you do in case of a breakdown or an unexpected situation on the road?

In the event of any technical malfunction or force majeure, please contact our customer support team. We will promptly assist you in resolving the issue or offer a replacement vehicle.

Q: Do I need to pay a deposit when renting a car?

No, renting a car from ProCars does not require a deposit. All vehicles come with full insurance coverage, making the rental experience as convenient and safe as possible for the customer.

Q: Can I travel abroad in a rental car?

Yes, you may leave Ukraine provided you have made prior arrangements and have the necessary documents.

Q: Can I rent a car with a driver?

Yes, we offer car rental services with a professional driver. This option is ideal for business trips, events, or transfers and is available upon request.

Q: Is it okay to let someone else drive while traveling in a rental car if the driver is tired?

Yes, but only if that person is listed as an additional driver in the rental agreement. This is important for insurance coverage: in the event of an accident or other incident, insurance coverage applies only to the drivers listed in the documents. Therefore, if you plan to share the driving, you should add an additional driver right away before your trip.

Having your own car is not only about comfort, but also about expenses. After all, you need to refuel, maintain, park, and pay for parking. If your car is rarely used and often sits idle, you can find a useful use for it by turning it into a source of passive income. For example, you can rent out your car and make money from it. This business model has long been in demand in civilized countries, and today car rental services are gaining popularity in Ukraine.

Why is it worth renting a car?

According to the current legislation, Ukrainians can lease their existing property, including cars. To do so, you do not need to have the status of a private entrepreneur or be self-employed - individuals can freely carry out such activities.

Main advantages of car rental

The main advantage of this service is a constant passive income for the car owner. In addition, the car remains the property of the lessor, and if the vehicle is needed again, it can be returned from the lease. At the same time, possible risks and losses from an accident or theft are compensated by insurance, and the care of the technical condition of the car, maintenance, parking, search for customers, paperwork and other problems are entirely the responsibility of the person to whom the car is rented. These can be private taxi drivers, taxi companies, car rental services, or car sharing organizations. Private drivers are the most careful with rented cars. Cars rented from taxi companies quickly become unusable due to constant use and high mileage. The cost of such cars begins to decline sharply. However, there is a significant advantage to cooperating with a taxi company: long-term car rental is much more convenient and profitable than short-term deals with ordinary drivers. We've figured out the advantages, now let's consider how to rent a car profitably and without risks.

Preparing a car for rent

When choosing an intermediary company for a profitable car rental, it is worth considering that the vehicle must meet certain requirements: the age should not exceed 3-5 years, the car should be in good technical condition, without external defects and legal problems.

Technical inspection and maintenance

Before you rent a car, you must first carefully check its technical condition. Professional diagnostics at a service station will help you identify malfunctions of the engine, steering, suspension, and brake system of the vehicle and, if detected, eliminate them.

Aesthetic appearance: cleanliness and repair

You should not forget about the appearance of the car, because the rental price will depend on it. A clean and well-maintained car also forms the first impression of customers and is the key to a good reputation of the transportation company. Before contacting a taxi or ridesharing service for a rental, wash the car, dry clean it, polish the body, and repair any visible defects and damage.

Have the necessary documents

After preparing the car for rent, it's time to draw up a contract. This task is quite difficult for the average person who is far from law, so it is better to involve a lawyer in this process. He or she will help you draft all the clauses correctly to avoid legal conflicts. The agreement should clearly state the rights and obligations of the parties, financial aspects, etc. A very important point is liability in case of an accident and violation of traffic rules. The following documents are required to conclude the contract:

Technical passport for the vehicle, which confirms the ownership of the car.
Car transfer and acceptance certificate.
An MTPL policy, or even better, a hull insurance policy to protect yourself from any risks.

Choosing a platform for renting a car

You can find a tenant through social networks or platforms like OLX. This can take a lot of time, but it will allow you to avoid paying a commission to an intermediary. And to avoid any hassle at all, it is better to turn to specialized online rental or car-sharing services that have a wide audience reach and convenient car booking applications. Choosing a platform involves assessing its popularity, terms of cooperation, level of commission, security guarantees for the owner's car, and ease of use. It's important to consider the platform's reputation, target audience, and insurance coverage.

How to set a fair rental price?

The main goal of car rental is to make a profit. But what should be the amount of payment for this service? The price should be fair and competitive in order to attract a client and still break even after covering all expenses, paying for

vehicle tax
maintenance of the vehicle;
repair work;
registration of an unlimited CTP policy.

A car business can cause losses if you do not calculate all expenses in advance. You need to realize that all fines from traffic cameras will be addressed to you, even if another driver was driving at the time of the violation, since you are the official owner of the car. In order to avoid paying fines for the tenant, you should draw up a lease agreement correctly - we'll tell you how to do this below.

Market and competitor analysis

First, study the local market in detail. Find out how much tenants are willing to pay per month for a similar car model, adjusted for technical condition, year of manufacture, and mileage. Of course, a new and prestigious car will cost more to rent than a used budget car.

Additional services: what affects the price

Several factors affect the rental price:

car brand
technical condition of the car;
rental duration;
seasonality (demand increases in summer);
rental region.

The rental price can be increased by providing additional services, such as

extended insurance coverage (hull insurance, civil liability insurance).
child car seats, GPS navigators, roof racks or bicycle racks;
unlimited mileage by kilometers;
delivery of the car to the tenant;
provision of a set of winter tires;
inclusion in the lease agreement of other persons who may drive the vehicle;
exclusive conditions, etc.

Flexible rates for short-term and long-term rentals

To make your offer more attractive to the tenant, develop a flexible pricing system. These can be discounts for long-term leases or special prices for regular customers.

Paperwork

When your car is ready to be rented, you should move on to the next step - paperwork. The most important document is the contract. It specifies all the terms and conditions of the vehicle rental. The contract is made in two copies: one remains with you and the other with the client.

Rental agreement: mandatory clauses

There is no clear form of the contract, but the document must contain the following:

Passport information - yours and the lessee's.
Information about the vehicle (make and model, color, license plate, VIN number, year of manufacture, etc.)
The clause stating that the car is leased and its clear terms. If no terms are specified in the agreement, it is considered to be indefinite.
Who and at whose expense maintains and repairs the car and how exactly it is done.
The amount that the lessee must pay you and the terms of its payment.
Terms of payment for fines, vehicle tax, maintenance, and repairs;
Signatures of the parties.

You can include additional conditions in the contract: prohibit using the car as a taxi, traveling outside the city, setting the maximum allowed mileage per month, etc. It is also worth specifying sanctions for the lessee for violating the terms of the agreement.

Specifics of insurance and tenant liability

It is necessary to conclude a contract of compulsory civil liability insurance, or CTPI, which covers losses to third parties in the event of an accident. If an accident occurs due to the fault of a tenant who is not listed in the policy, the insurance company will not compensate the victims and they will claim it from you. Another option is to take out insurance for an unlimited number of drivers. In this case, you don't need to add the tenant to the policy, but you will have to pay more for the CTP insurance. This is convenient if you plan to change tenants frequently: you don't need to make changes to the policy every time. When you take out a car insurance policy for specific drivers, you need to take into account that if the tenant has a short driving experience, this will increase the price of the policy. CTPCI does not cover the risk of damage to the car for which it is issued. For example, the renter may get into an accident through his or her own fault, and then the damage to the rented car will not be reimbursed. The car can also be scratched in a parking lot or stolen - these risks are also not covered by MTPL. You can avoid such situations by purchasing a CASCO policy with maximum coverage, including damage to the car during a natural disaster or theft. In this case, the insurance company will compensate for the damage in the event of an accident. The lessee must also be included in the hull insurance policy.

What to check before signing a contract

In order not to encounter an unscrupulous tenant, find out all the information about him or her before signing the lease (you can do this through special services):

validity of the passport;
whether there are any debts on alimony, credit and tax payments;
the fact of bankruptcy;
collateral;
being on the wanted list, etc.

If the check reveals that the client has problems, it is better to refuse to cooperate with them.

Transferring the car to the lessee

Proper car transfer guarantees the protection of the interests of both parties and reduces the risk of misunderstandings during the lease.

Preparing an acceptance certificate

The car transfer and acceptance certificate indicates the technical condition of the car and lists the defects that exist at the time of transfer. The lessee does not have to pay for their elimination. However, if a new scratch appears on the body, you have the right to demand that the lessee pay for the repair.

Photograph the condition of the car

Conduct a joint inspection of the car with the tenant and record the presence or absence of damage (scratches, dents, etc.). Even better, take photos of the car from all sides before handing it over.

Brief the lessee

When handing over the car, explain in detail the features and basic functions that the lessee may not know about. This applies to climate control settings, navigation system operation, fuel quality, etc.

Control and monitoring during the rental period

Installing GPS trackers will help you to ensure constant monitoring of your car's geolocation.

Using GPS trackers for safety

Installing GPS trackers guarantees the safety of the car and helps to hold the lessee liable in case of violation of the contract. With GPS trackers, you can

track the route and speed parameters of the car;
Receive notifications in case of driving outside the designated area
promptly respond to attempts to steal the vehicle.

What to do in case of breach of contract

What should you do if the lessee exceeds the limited mileage, uses the car for other purposes, violates traffic rules, returns the vehicle from the lease in a timely manner, or does not comply with other terms and conditions specified in the contract? First of all, you need to contact the lessee and clarify the reason for such actions. If the situation cannot be resolved, you should use legal services to protect your rights. For example, if the tenant violates traffic rules and is stopped by an inspector, you will not have any problems. The person driving will be fined. But video recording cameras do not know who is driving the car. Fines for violations they record are always sent to the owner of the car. You can avoid paying them by appealing the decision in court or by stipulating in advance in the contract that the lessee pays the fines out of his or her own pocket.

Settlement of possible conflicts

If you have any conflicts with the tenant, discuss the problem and try to find a compromise solution.

What to do in case of car damage

In case of damage to your rented car, there is the following action plan:

Inspect the car and record the damage, followed by a report.
Notify the insurer, who will tell you exactly what to do in this situation.
Claim compensation in accordance with the terms of the contract.

Resolving disputes

If the tenant refuses to fulfill its obligations, contact a lawyer to resolve the situation. If the problem cannot be resolved amicably, file a lawsuit with all the necessary documents (contract, car damage report, photos).