When you have extra space around your house, you can use it to make a passive income with Neighbor.com. All you have to do is list your rental, provide a few items of self-verification, and choose from a pool of screened renters. It’s a safe and effective method for making money with little to no effort.
Is Neighbor.com Safe?
Neighbor.com is safe. The company is still relatively new as it was founded in 2017. Neighbor has not yet received accreditation from the Better Business Bureau. They offer a Host Guarantee Protection plan and have secure third-party credit card payments.
All you have to do is list your extra space and Neighbor.com handles the rest. When renters are interested in your listing, the app takes care of screening them for you, handling the transactions, and setting up the agreements.
All that’s left for you to do is provide access to the fully screened applicant. Payments are processed by Stripe directly into your bank account once a reservation is made, keeping your information secure.
The app offers a renter guarantee that offers renters free property protection for up to $25,000. It covers theft or damage of qualified items but there are restrictions.
Hosts are also offered protection if the renter causes serious damage. Again, there are restrictions to filing a claim.
Does Neighbor App Have Insurance?
The Neighbor App offers up to $1 million coverage for every host every time a renter makes a reservation and stores their belongings at your listing, you’re automatically covered and don’t have to do anything else.
You’re protected from your renter’s personal liability claims as well as those from their authorized parties. Every host in every U.S. state is covered.
Host Guarantee payments have certain limitations on them. It is secondary to any insurance coverage that you may have like homeowner’s insurance.
It does not cover property damage, damage or personal liability claims that are the result of activities that are not related to storage, insurance deductibles, and any claim that does not follow the resolution process as defined by Neighbor’s resolution process.
How to Stay Safe with Neighbor.com
Neighbor.com also places restrictions on the kinds of items that your renters can store. There can be no ammunition, drugs, pesticides, weapons, stolen property, flammables, or hazardous materials.
To keep your renters safe, you will be required to submit photo identification to verify yourself with the app. You must also verify your email address and phone number.
Because all payments are processed through Stripe, you will be required to submit your social security number or tax identification number.
On the other side of things, you can place restrictions on your renters. They can be required to have a profile photo and a linked Facebook account or phone number on their account.
You can also place additional restrictions on the items that are allowed to be stored in your space. The renter will have to agree to all of your terms before they will be eligible to book the rental.
You have the final say when it comes to who you rent to. You can thoroughly research the applicants and decide for yourself who seems to be the best candidate to keep their belongings in your space. Just because they apply does not mean you have to rent to them.
Just like Airbnb’s policy of no third-party payment options, Neighbor.com has a strict policy that all transactions must take place within the app. This protects both you and the renter and saves you from the $200 fine from Neighbor.com.
You’ll want to make sure that all rules about your rental space are communicated well in advance to your renter so that there are no miscommunications anywhere down the road.
Otherwise, you’ll need to follow steps common to resolving all Airbnb violations. These include having proof of the violation, contacting the renter, contacting Neighbor.com, and posting a review.
What if the Renter Stops Paying?
Neighbor.com has a process in place where you will still get paid as long as the renter’s belongings are on your property. Once the failed payment reaches 90 days, a representative will reach out to you regarding auctioning off the renter’s things.
You will be asked to take several photos and to restrict the renter from accessing the property. Once the items are successfully auctioned off, you will receive your final payment and your listing will go live again on the app.
However, you cannot interfere with or delay the auction process as this could interfere with or even prevent you from getting your final payment.
Who Owns the Neighbor App?
The co-founders of the Neighbor App are Colton Gardner, Joseph Woodbury, and Preston Alder. They started the company in Lehi, Utah in response to a storage issue faced by Adler.
He struggled one summer during an internship to store his items and finally ended up having to drive hours to use a friend’s garage for his storage needs. This experience helped spur the idea of creating the app which functions as an Airbnb for storage spaces.
Who Is Neighbor.com Most Suited For?
While anyone can use Neighbor.com, it is ideal for users seeking to make some extra money through leasing their unused space to renters who live in the nearby area.
While it’s primarily directed at person-to-person interactions, many businesses have begun using the platform to make up for lost profits during the pandemic.
Whether it’s through repurposing their space for internal storage or revamping their parking lots for RV and boat storage, they’re using the app to recoup some of their losses.
Considering storage options other than Neighbor? Check out our article on the best alternatives to storage units here…
Can You Make Money with Neighbor?
The amount of money you can make with Neighbor really depends on what kind of storage space you have to offer as well as the general availability and cost of storage in your area. It’s a passive income source where you will have to do very little to earn money month-to-month.
Neighbor.com does take a small percentage of your rental fee at 4.9% and charges $0.30 for each payout.
You can maximize your earnings by cross-posting your listings on your social media accounts, hanging flyers at local stores and colleges, and asking friends and family if they know of anyone looking for storage space.
There are also ways to optimize your listing on Neighbor.com which will boost your rankings. By adding a profile picture, you will allow potential renters to know that you are a real person and not a scammer.
When you offer a personal bio, it builds trust with those viewing your profile and they will be more likely to rent from you. It is recommended to provide at least three to six pictures of the space you are renting to allow prospective renters the ability to judge the space.
Finally, you’ll want to provide a decent description. Make sure you provide all the essential details of the space and why it’s an excellent choice for someone to store their belongings.
Where Is Neighbor Available?
There is some level of service available in all 50 states as well as Washington, D.C. Neighbor has also started adding boat, RV, and car storage in many cities.
Neighbor.com offers a great way to make use of that extra space you don’t need while allowing you to supplement your income. It’s completely safe and backed by insurance so you can be assured that you are covered if anything goes wrong. It’s truly the Airbnb of storage.