There are many ways to make money in the gig economy, including Uber, Lyft, Airbnb, and other side hustles. However, those gigs often require quite a bit of work and even costs (i.e., car maintenance). Neighbor doesn’t really have either of those problems.
By renting out space you aren’t using, you’ll earn money every month. Renting out space you own doesn’t cost anything extra, nor does it require your constant attention.
Neighbor also handles everything for you. Its platform finds renters, handles the transaction, includes processing the payment, and finalizes the arrangement. From there, you just need to provide the space and access to it. In this article, we’ll look at how Neighbor works for both hosts and renters.
Quick Summary
- Low-maintenance gig opportunity
- Theft, damage, and liability protections provided
- Fees charged to both the host and the renter
Neighbor App Details | |
|---|---|
Product Name | Neighbor |
Service | Rent or list storage space in homes |
Renter Service Fee | Varies (typically 10% to 15%) |
Host Processing Fee | 4.9% + 30 cents |
Promotions | None |
Who Is Neighbor?
Neighbor is a technology platform that specializes in crowd storage. It was founded in 2017 and is based in Lehi, Utah. Its CEO and cofounder is Joseph Woodbury. Neighbor has raised $12.7 million through a Series A.
“We’re just about the most accessible market out there,” Woodbury said to Desert News. “Anyone can use it. And you don’t have to go work to make money, like driving for Uber or Doordash. If you want to do Airbnb you have to have a furnished space and you better be in a destination location.”
What Do They Offer?
Neighbor allows anyone to rent out space in their home for storage. It’s basically the Airbnb for self-storage. The space might be in the host’s attic, driveway, or a room in their house.
Renters
To find space to rent, you can use Neighbor’s website or mobile app. Neighbor tries to find spaces available nearby. Storage options are available for:
- General self storage
- RVs
- Boats
- Cars
- Business storage
Listings will display the type, size, price, and location. Unlike commercial storage options, you can rent for less than a month in some cases. Once you are ready to rent a space, your debit or credit card will be charged and the host notified.
Payments and Refunds
After the host approves your rental, you’re set. Your automated billing will begin from the day you are charged. Note that you’ll be charged in advance. For example, if you are paying by the month, you are charged one month in advance.
Unlike the processing fee charged to hosts (covered later), the renter's service fee is not clearly defined. Some news outlets have reported that Neighbor charges a 15% cut of the transaction. But, in our own tests, the service fee varied from listing to listing -- usually falling in the 10% to 15% range. It would be helpful if Neighbor would publish a clear explanation of how the renter's fees are calculated.
Renters contracts are monthly. You can't rent for 10 days and only pay for 10 days worth. You can still rent for 10 days and then cancel, but at that point you will still be paying for a full 30 days.
If you need to cancel, you’ll receive a full refund if it is done up to four days before your scheduled booking (including the service fee). Within three days of the start date, you’ll receive an 80% refund (excluding the service fee). After the start date, there are no refunds. If the host decides to cancels, they must provide 30 days notice and you’ll receive a full refund.
Renter Guarantee
Neighbor places a high priority on safety and security. It provides $25,000 against damage or theft of your property at no extra cost. To take advantage of this protection, you’ll have to first register your property through Neighbor.
Like any self-storage, if something has strong sentimental value to you but not much monetary value, it can't be replaced in the event it is damaged or stolen.
Hosts
Hosts are the people with space to rent out for storage. Neighbor makes it easy for people to rent out space. You’ll describe the space and provide its size. You’ll also need a price. For that, Neighbor has a rent estimator to help you find the best price.
There is no cost to list a space. But once someone decides to rent, you’ll have to pay 4.9% + 30 cents of the rental fee to Neighbor.
Safety And Protection
Just as Neighbor provides renters with protection, hosts are also protected. Each host gets $1 million as a Host Guarantee. See the website for details on what it covers.
There are some restrictions on what renters can store at a location as well. For example, the following are restricted items:
- Drugs
- Weapons
- Ammunition
- Pesticides
- Hazardous materials
- Perishables
- Stolen goods
- Flammables
Are There Any Fees?
Yes, all hosts will charge different rental fees. However, Neighbor says that they're prices are 50% cheaper than other self-storage options. As mentioned above, Neighbor charges renters a service fee (typically 10% to 15%) and hosts a payment processing fee of 4.9% + 30 cents for every reservation.
How Do I Open An Account?
You can visit the Neighbor website to open an account. Or you can download the mobile app from the Google Play Store or Apple App store. Hosts will need to verify their email, phone number, and identity.
Is My Money Safe?
Yes, Neighbor uses Stripe to handles all its payment processing -- the same processor trusted by massive companies like Target, Google, Amazon, and Spotify. Neighbor also has protections in place for cancellations.
Is It Worth It?
Yes, Neighbor is an appealing option for both renters and hosts. Renters may be able to save big on storage costs. And hosts could turn a spare bedroom, garage, attic, or even an empty space in their driveway into monthly cash flow.
Whether you're looking to use Neighbor as a host or a renter, you'll want to compare its pricing and terms with other companies in the space like Stashbee, Store At My House, or Stashii. And if you're looking for more ways to make extra money, be sure to check out our 10 Favorite Money-Making Apps of 2020.
Neighbor Features
Service | Rent or list storage space in homes |
Renter Service Fee | Varies (typically 10% to 15%) |
Host Listing Fee | None |
Host Processing Fee | 4.9% + 30 cents |
Renter Cancellations |
|
Host Cancellations | Renter receives full refund (host must also give 30 days notice) |
Renter Guarantee | $25,000 damage and theft protection |
Host Protections | |
Payment Processor | Stripe |
Host Payout Frequency | Monthly (at the end of the 30-day rental period) |
Customer Service Number | 1-801-653-0264 |
Customer Service Hours | Monday - Friday, 9:00 am to 6:00 pm MST |
Mobile App Availability | iOS and Android |
Promotions | None |
Neighbor App Review
- Pricing and Fees
- Safety and Security
- Cancellation Policy
- Customer Service
Overall
Summary
Neighbor is a website and app that matches people who have empty space with other people in their neighborhood who need storage or parking.
Pros
- Verified hosts
- Renter damage and theft protection
- Host liability protection
- No listing fee for hosts
Cons
- Service fee increases total cost for renters
- Processing fee charged on every host payment
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.