RENTAL OPERATIONS
A rental business is more profitable at scale ,” said Nickell , “ and it ’ s better when it ’ s more complex . I would say rental is not something you want to dabble in . You must commit to this business . It might take you a few hundred thousand dollars to pilot this . And that can help you hire the staff and mechanics you need to do this well .”
A successful rental business must have efficient service operations to keep equipment rentable .
Not every customer is comfortable securing equipment to a trailer , or towing one . You ’ ll get to know the customers who are .
Downsides to rental operations
Along with the initial investment needed to get started , rental businesses do have some downsides to consider . “ The worst part is that renters do not care about the equipment ,” said Reynolds , of JB Rent-All in Florida .
Mau acknowledges that owners need to spend time making sure both weekend warriors and pros know how to properly and safely use the equipment . “ A primary learning I would share is to create ways to inform people on how to use the equipment so it goes out and comes back . It can be a delicate situation . People are impatient , they know the rental is on the clock .” Mau said he tells people they should come in and get equipment training before Saturday morning when they ’ re in a hurry .
Theft of equipment has been a problem for some rental businesses . Sheriffs in Polk County , Florida arrested a group of criminals in 2023 for stealing more than $ 1 million of tools and equipment from Home Depot stores in the area . Another Florida man was arrested in Broward County this year for stealing $ 460,000
worth of equipment from Home Depot . “ This can be a real risk in some parts of the country ,” said Nickell .
Rental operators also need to own trailers and provide delivery service . “ We deliver to contractors and to homeowners ,” said Matt Bridges . “ Everybody is busy . And a lot of people today don ’ t know how to pull a trailer . This is a service we must provide . This is a cost for my time , my truck , insurance and fuel , but it ’ s another revenue stream .”
Is it right for you ?
The upsides and downsides of the rental business ( not comprehensive lists ) might look like those for a retail business or a service business . Interested people need to consider if they have the physical space , too , to properly run a rental operation .
The overall economic and social trends are clear , and they point to greater acceptance of renting . While ownership of both land and equipment has long meant control and autonomy . And it still can . But it comes at a cost . And people today are increasingly proving with their pocketbooks that the sharing economy enables freedom , creativity and innovation .
26 OPE + July 2024 www . OPE-Plus . com