Renting
A mate of mine does this - he rents new DR400 to a flying school. He set up a business to administer it for him.
If you are buying new then there is certainly an opportunity to claim back some of the VAT, provided you are VAT registered of course.
However, there is a sting.
If you want to make a small fortune out of aviation, start with a big one.
For a start - get yourself an insurance quote for 'Hire & Reward'.
I think you'll find it will double your premiums, especially if it isn't one of the easier types (Robin for example).
Secondly - how do you charge. Honesty? Forget it. Hobbs? We've all seen them taxying much too fast just to get the aircraft parked and shut down (shock cooling? Whats all that about...??)
We've also overheard them saying - if I'm paying on the Hobbs, I'm going at full chat everywhere. (more scope for a wrecked shock-cooled motor).
Tacho? Maybe.
Unless you know them really well, the aircraft will suffer.
If you know them that well, consider a (max 4) syndicate. Much cheaper and less stressful than hiring out.
Sorry to paint a bad picture but I do know several other people that hire their aircraft out. They don't make much money at it, if anything, by the time everything is taken into account. Their aircraft are also hacked. You won't believe some of the stories.
My Robin is on Public - I wouldn't dream of hiring it out to anybody. By the same token, my good mates ( no current vacancies!) fly it for free.
My advice - keep it to yourself or syndicate it.
HP