How to Rent (Almost) Everything -- and Save

Plenty of consumers have rented a truck to help them move or a tuxedo to wear to a wedding, but what about a digital camera for the family road trip? Or a Bugaboo baby stroller for the grandkids’ next visit?

As Americans continue to cut back – consumer spending fell 1.4% in March from the year-prior period, according to the latest report from the Commerce Department – renting has become increasingly popular. And a growing number of web sites are capitalizing on this shift.

“As things get tighter financially for people, renting becomes a more attractive option,” says Ken Bernhardt, marketing professor at Georgia State University. Increased supply and demand on both sides of the rental equation is giving these transactions a boost: More consumers are willing to rent their goods out for extra income, while others are less willing to buy something they’ll use only once or twice, he says. After all, if the neighbor is complaining that your tree branches are hovering over their yard, it makes more financial sense to rent a chainsaw for $8 than to buy one at Home Depot (HD) for $140.

While plenty of niche rental players – including sites for renting children's toys (BabyPlays.com), special occasion jewelry (AdornBrides.com), and high-end fashion (BagBorroworSteal.com and WearTodayGoneTomorrow.com) – have been trickling into the market for years, a new breed of one-stop shopping sites are vying to become the eBays of the rental industry. Sites such as Zilok.com, RentCharlie.com and ILetYou.com offer to rent nearly "everything and anything" and can be a handy way to save – as long as you know how to use them.

To help you, here’s a guide for both owners and renters.

Peer-to-peer rental sites, such as Zilok and CrowdRent, connect individual owners with renters. On Zilok, owners list an item (for free), along with a description, photo, price and their location. The item is assigned a category – say, home appliances or parties – so renters can easily search for what they need. Interested renters can contact the owner with questions about the item. The site also requires renters to pay a security deposit and holds them liable for any damages they may cause (the liability can’t exceed the residual value of the item, which is set in the contract), says Jeff Boudier, Zilok's general manager.

At rental search sites like RentCharlie and ILetYou, users enter the item they want and their location. The site searches through its listings, including local shops and major national rental companies, to find results that match the criteria. While the selection is wider here, users won’t see prices and must contact the business directly to get price information and availability.

Renters don’t need to worry about fees to use these sites. Owners, though, will often have to pay a commission on their rentals. Zilok, for example, takes a 5% to 10% commission on every transaction. So if the rental is set at $30, the owner pays $2 of that to Zilok. CrowdRent takes a 30% commission.

How do you know if you should rent your kayak for $40 a day or $60? First, see how much a local shop or rental company is charging, then price your item competitively.

Another strategy is to base your asking price on about 10% of the retail price. If your almost-new kayak costs $400, rent it for $40 a day. The renter is saving 90% of the purchase cost – a considerable value. Pricing figures will vary depending on how expensive the item is, but for the majority of household items it’s a good guideline, says Mark Long, president of CrowdRent, a peer rental site in Denver.

Similar to Amazon.com (AMZN) and eBay (EBAY), Zilok and iLetYou provide owner and company evaluations, which consumers should take into account when shopping around. RentCharlie, which launched in the U.S. in February, is planning to add a message board to its web site, letting rental-store owners and consumers ask each other questions, says Jeff Longlad, vice president of sales and marketing for the company.

Lending a pricey power saw to a perfect stranger can make anyone uneasy. While the security deposit (which is required) and contract (which is encouraged) on peer-to-peer sites are meant to prevent financial loss in case of theft or damage, users can take extra precautions to ensure a trouble-free transaction. If your item is valuable, make sure you agree on and write down its residual value in the rental agreement, says Boudier. Also, check the renter’s driver’s license when meeting, and note the ID number in the contract. That way if the item isn’t returned, you (or the police) can more easily track the renter down. If you’re renting an item from a peer-to-peer site, check that it works and you know how to operate it when you pick it up.

At business rental search sites, trust is less of an issue because the item is being rented by an established business that has a license, a web presence and can supply customer references.