How to start a car rental business in Cebu

Cebu demand comes in three shapes: arrivals at Mactan-Cebu International Airport who want a car delivered to the terminal, visitors heading south to Moalboal and Oslob or north to the Bantayan and Malapascua ferries, and residents who need a car for a week or a month. Self-drive sedans and MPVs serve the first two; a van with a driver serves groups; diesel SUVs serve long trips.

Start with a small fleet you can keep spotless and serviced rather than a large one you can't. Decide early whether you offer self-drive, with-driver, or both; each car on 13C states which, and the driver fee per day when there is one.

1. Business name. A sole proprietor registers the name with the DTI; a corporation or partnership registers with the SEC; a cooperative with the CDA.
2. Barangay business clearance from the barangay where the business is based.
3. Mayor's or business permit from your city, for example Cebu City, Mandaue or Lapu-Lapu, renewed yearly.
4. BIR registration, which gives you the Certificate of Registration (Form 2303) and the right to issue official receipts.

These are the same documents 13C accepts for verification: one of them, plus the representative's government ID and a dated photo of one of your cars. If you plan to offer cars with a driver or tourist transport, check the current LTO and LTFRB requirements for that service with your city's business permits office before you advertise it; the rules differ from plain self-drive rental and change over time.

• Registration (OR/CR) current and in the business's or owner's name.
• Insurance. Compulsory third-party liability is required to register the car; comprehensive cover with passenger liability is what protects a rental business when a renter has an accident. Read the policy for exclusions on rental use.
• Maintenance record with dates, kilometres and costs, so you can show a renter the car is looked after and plan service before it fails on the road.

On 13C a car can be listed only while its registration and insurance expiry dates are current. If either lapses, the car is hidden from renters overnight and you are told; it is listed again once the dates are updated. Reminders go out before the dates fall due.

Renters compare on more than the daily rate. Decide, and write down, your daily rate and any weekly (7+ days) and monthly (30+ days) rates; the security deposit and when it is refunded; the mileage limit per day and the fee per extra kilometre; the fuel policy; the late-return grace period and charge; the cancellation policy; what is prohibited, such as ferry crossings without permission or smoking; and the delivery and driver fees.

Every one of these has a field on a 13C car page or in the store's Policies section, and the rental agreement is generated from them, so a renter sees the same terms when browsing, when booking and when signing. Vague policies are where disputes start.

1. Create your 13C store: name, city, logo, pickup locations and policies. About ten minutes; it stays private until you publish.
2. Add your cars with photos, rates and their registration and insurance dates.
3. Submit verification: the representative's ID, one business document from the list above, and the dated car photo. Review usually takes a couple of business days.
4. Publish, then share 13c.online/your-business from your Facebook page, Messenger and anywhere else you already talk to customers.

From then on, inquiries land in one inbox with the car and dates attached, overlapping bookings are rejected by the database, and each confirmed booking produces a rental agreement the renter signs on their phone. The trial is free for 25 days with up to 5 vehicles; after that Pro is ₱499/month for up to 5 vehicles and Business is ₱1,500/month for an unlimited fleet. 13C takes no commission, and renters pay you directly.

• The rental agreement is signed, and the renter's license and ID match the booking. On 13C both are in the booking before pickup.
• Any down payment is recorded on the booking, and the deposit and balance are collected the way the agreement says.
• You and the renter walk around the car together and photograph every panel, the odometer and the fuel gauge. Our pickup checklist is written for renters; use it from your side too.
• Mark the booking as picked up, and later as returned, so the calendar and the car's availability stay right.

Read a sample rental agreement, try the sample store, or see everything 13C gives a rental business.