How do you earn money through Neighbor?
If you have unused space you'd like to rent out, register for the app (it's free). Neighbor will confirm your phone number, identity, and email address. You can elect to have an optional background check if desired.
You can set your own price or use the suggested list price from the app's algorithm, which analyzes the average rental rate for the type of space you're listing in your area.
Once the space is listed for rent, potential tenants can chat with you about it. You can review their profile and, if you both agree, the tenant will rent the space through the app. Hosts have 48 hours to reply to a request for rent.
The tenant's credit card is charged automatically each month and the rent is deposited into your bank account. There are no contracts. Tenants and hosts are supposed to give at least 30 days' notice if there's a need to remove the belongings. There's a nominal service fee of 4.9% and $0.30 for every transaction that is paid out.
Things to consider before renting with Neighbor
Liability and safety
Neighbor's service fee includes a $25,000 "renter's guarantee" and a $2 million "host guarantee." These protect both parties if the tenant's belongings or the host's storage space are damaged. As long as neither is found responsible, there's no personal liability to either party, so neither can be sued.
Tenants can't store firearms, illegal drugs, hazardous items, waste, perishable foods, or stolen goods. It's up to the host to ensure the tenant meets those requirements.
The identity of the person renting from you is confirmed, but you're letting a stranger into your property. There haven't been any publicly reported incidents, but there could be risks and dangers in this model of renting.
There's always a chance the tenant stops paying
If the host or tenant decides to cancel their lease early, the app promotes coming to a resolution together. If an agreement cannot be made, there's a $60 eviction fee that's split between the tenant and host.
If the tenant stops paying, Neighbor will continue to pay the host. It's not the host's responsibility to evict the tenant. Neighbor handles everything, from sending a default letter to the eviction/auction process.
While it may be worthwhile for some to rent their unused space, several risks should be considered before deciding to rent space on Neighbor. Do the risks outweigh the benefits? That's up to you.
Conduct your own due diligence on the company, its policies and procedures, and user experiences. Consider the risks involved in having a stranger rent space at your home or property. While it could bring in additional cash, it may not be the right fit for you.