Business

Feeling skint? Rent your spare stuff for serious cash

By Robert Sutton-Mattocks 13 January 2017
Summary

Your unwanted Christmas present could be a real money spinner.

This January, you want to invest in ‘the new you’. The only probably is that, after Christmas, there’s little left in the piggie bank for a new personal trainer.

Now though, you can rent out all those unwanted Christmas presents with the help of East London-based business, Fat Lama.

From kitchen gadgets to coffee machines, handbags and pet carriers or the latest drone, your spare stuff could be making you money.

Drone Tycoon

Already, savvy millennials are making serious cash, Fat Lama CEO Chaz Englander told The Memo.

One is an aspiring drone tycoon who’s got three drones worth between £200 to £3,000. She’s able to rent these out for up to 30% of their full price every month.

“She’s not a production company. She’s just an independent person who likes drones,” Englander explains.

“This lady is making in the thousands per month.”

Pet carriers & GoPros

It’s not just drones that can earn you hard cash: an unexpected item like a pet carrier can make a 50% return on its full price.

But not every product fares so well.

“Certain areas of electronics are way lower,” says Englander. “GoPros are going to rent for maybe at 10% of its value at top whack for 2 or 3 days”

Smart insurance

Right now, there are about 10 to 15 drones being rented out across the capital, but insuring your valuables is Fat Lama’s unique selling point.

Everything on the site is insured to 100% of its value. This is included in the cut that Fat Lama takes from the price of a rental, covering items up to a value of £15,000 (setting them apart from sites like Peerby where sharing is free but there’s no insurance).

Borrow your own

What’s great about Fat Lama is that it also allows you to try before you buy.

Maybe you’ve got an itching fascination to fly the latest drone but you’ve got the attention span of a pig-tailed macaque and you don’t want to waste money on a drone you’ll only fly once.

Renting a drone lets you pretend to film Planet Earth in the garden, without the financial burden.

Perhaps you’ll be the next aerial Spielberg but, if not, you’ll have saved a lot of money and had some fun.   

“It’s about making that party, that experience, a little bit better by having access to something you couldn’t afford to buy,” adds Englander.

The future of retail

The Fat Lama model is based on our changing consumer behaviour.

78% of millennials are choosing to spend money on a desirable experience or event over buying something.

“In general we’re going to see people moving away from buying things that they are using rarely,” says Englander.

So harness the trend and become the next drone buy-to-let millionaire!