Advice for a rental business idea (Its similar to fatlama & borroclub)

[mojohn]

Hi, I'm currently brainstorming some ideas for a new business. I'm thinking of making a website like BORROCLUB or FATLAMA

My idea is to allow anybody to rent out their items (in a niche) on the website and also determine the length of time and deposit etc.

I wanted to ask advice of people who have experience in this model or know that; are there any WordPress templates or Shopify extensions I can use to do this.

There is one theme I have found on Envato market: "Stuff rentals: rent out anything-WordPress"

However, I cannot check if this theme allows anybody to list an item they would like to rent.

Can I also ask those who know anything about this model or are experienced; Am I obliged to do anything like getting any insurance (in the UK), or would the customers' deposit suffice?

 

[Mr D]

Will customer deposits cover claims for damages or loss?

 

[mojohn]

Yes if there is a damage the value of the item will not be returned to the customer and instead to the owner.

E.g
Customer pays £20 deposit (product is worth £15)
Customer damages or loses product
Customer will only receive £5 back

FYI the products are not very valuable like cameras or furniture they are between £12-£25
The owner decides the deposit amount but the deposit cannot be too high and will be monitored

EDIT:
Just to Add:
The customer will pay the deposit to the company
The company will return it back or to owner depending on if there is damage or loss

 

[Mr D]

Yes if there is a damage the value of the item will not be returned to the customer and instead to the owner.

E.g
Customer pays £20 deposit (product is worth £15)
Customer damages or loses product
Customer will only receive £5 back

FYI the products are not very valuable like cameras or furniture they are between £12-£25
The owner decides the deposit amount but the deposit cannot be too high and will be monitored

And your dispute process regarding damage claims?

I'd be looking to get rid of old junk and claiming money from you if its that easy.

 

[mojohn]

The deposit is compulsary so the company wont be paying anything from itself

I'm here for advise and direction let me know if I'm doing this wrong or the best way you think I should go about it

Ps. It's just an idea right now

 

[mattk]

How much are you expecting to charge in order to borrow an item worth £12-£25?