Call me overcautious but here are a few things to consider if you decide to hire out your aircraft.
1. Talk to your insurance company. Most will increase your premium especially if the hirer is low time.
2. Ensure that the hirer operates your aircraft the way YOU want it flown, (asuming you fly it correctly yourself, as per the POH).
3. Get a cash deposit from the hirer, if its good enough for Avis/Budget et al its good enough for you.
4. Put all conditions in writing - a contract.
5. Make it a condition of hire that the hirer is liable for all damage - INCLUDING insurance excess.
6. Wet hire, with a caveat that if the fuel price exceeds a certain limit, maybe $1.20/litre that the hirer pays the excess.
7. Check him/her out yourself with a log book inspection and test flight. Ask his instructor/flying school for recommendation - or not!
8. Make sure that the hirer is not going to do anything Illegal, you might become liable and/or an accessory.
Having said all that, make sure you REALLY want to go down this road. It might sound good but it could also be the biggest mistake you ever made - trust me - I know from experience, I hired my aircraft to an individual many years ago and it cost me a new engine when he failed to keep an eye on oil consumption and ran out of oil - BANG, new engine needed 1500 miles from home. Very expensive and a complete pain in the arse.
If the hirers initials are A.P., PM me.
BSB