Renting out equipment

[Guido]

Just curious about this subject, and I know its probobly touchy for some that had bad experiences lending equipment to their good ole buddies and all that. But here goes.

Has anyone ever rented out the equipment that they don't use full time? i.e. Hydroseeder, woodchipper, log splitter, aerator, roller,skid steer, etc?

I was thinking that if you wanted to expand your business, but couldn't quite justify the machinery cost to get into the arena, you may think about buying it and renting it to other small contractors in your area that are in the same boat and can't afford to purchase the machine.

Any ideas and conversation are welcome.

[GroundKprs]

Idea would be feasible, but a lot of work. As owner of the skid steer, you could be liable when your buddy runs over someone, unless you have set up the rental process in the proper legal manner.

And with most all machinery, it will last much longer with basic maintenance when just one operator is using it, compared to just two operators, even when the two are very concsientious about care of the machine. With multiple operators, you will spend more time just checking the machine to make sure it is in proper condition. Of all the people I have known in my life, I would only lend a tool or machine to 4 people, and only if I know that the machine is 100% top shape. One of these was once using my tiller when it developed a funny sound, and he promptly quit using it; most people would just try to get their job done, especially if they are paying rent on it.

Also in some states, rental of machinery is a taxable sale, depending on the amount of rental time versus your use time. Your buddies may resent you charging them tax for a machine that you don't pay tax on when you use it.

All in all, would be better to offer to work your machine for others as sub, than try to go into rental business.

[Premo Services]

You know, in thoutght this sounds like a good idea. I would have some reservations though.
What about insurance on the equiptment, wouldn`t it cost much more if you were to be renting it out?
I have rented aerators, other equiptment from the rental stores, and they are in need of some serious maintence.
On this maintenance issue, the replacement parts are expensive, the time to do the repair or maint., either you or someone else. These costs would have to be included in rental charge. I would think that the charge you would have to have on the equiptment would be a drawback. So, for now I will rent the equiptment, until I get enough business to warrant purchasing the equiptment.
I have never loaned out my stuff, but I see the way the rental equiptment comes back to rental stores.:eek:
Also I would try to be a sub contractor for other companies that don`t have the equiptment.
MY NUMBER ONE RULE-----
DON`T MESS WITH THE MANS EQUIPTMENT!!!!!!!!!!!!!!!!!!!!

[HOWARD JONES]

The concept of more fully using the equipment does sound good - one rule of thumb I've heard is rental equipment will only last half as long - just to consider in the pricing.

[Remsen1]

I would not rent out due to expecting non-owners to abuse and use for jobs the machine is not intended.

Would charge them to do what they were going to do.

[Mowingman]

I have a deal going with 3 other LCO's where we rent equipment to each other as the need arises. I have a 6yd. dumptruck and a tralier to haul a bobcat on, as well as a 60"ztr. They have ztr's,brushogs, and other equipment I can't afford to buy for part time use. We have set hourly rental rates for each machine we rent. Owner covers major mechanical repairs and service. Renter pays for any repairs needed if breakdown is caused by something they did to machine while using it, and they do daily service. Machines go out full of fuel and return full of fuel. We bill each other at the end of each month. We all carry liability ins. of 1 million dollars. We have had this deal going for 3 years and have had no problems and have saved ourselves a bunch of money. I would not rent like this to people I did not know well and trust.:)

[CT18fireman]

I used to work at a shop where the owner would rent equipment to landscapers while their machines were being repaired. If I remember he had to increase his insurance for the renting of equipment. This would be my main concern.

[OBRYANMAINT]

i purchased a skid steer in the spring , to use primarily loading mulch and snow plowing...i tried to rent it out and just get some time on it but found that there were'nt many interested

[Guido]

Originally posted by Mowingman
I have a deal going with 3 other LCO's where we rent equipment to each other as the need arises. I have a 6yd. dumptruck and a tralier to haul a bobcat on, as well as a 60"ztr. They have ztr's,brushogs, and other equipment I can't afford to buy for part time use. We have set hourly rental rates for each machine we rent. Owner covers major mechanical repairs and service. Renter pays for any repairs needed if breakdown is caused by something they did to machine while using it, and they do daily service. Machines go out full of fuel and return full of fuel. We bill each other at the end of each month. We all carry liability ins. of 1 million dollars. We have had this deal going for 3 years and have had no problems and have saved ourselves a bunch of money. I would not rent like this to people I did not know well and trust.:)

This is exactly what I meant. Of course it would be a circle of fellow businessman, not for joescrub82 down the road to tear apart. This is the only way I could see it working also.

[plow kid]

Originally posted by guido


This is exactly what I meant. Of course it would be a circle of fellow businessman, not for joescrub82 down the road to tear apart. This is the only way I could see it working also.


That wouldn't be a refrence to a certan member would it?:D

[lawnboy82]

Dave, rental centers rent out equipment knowing that the person or persons renting it are going to beat the heck out of it. So if you have an inshop mechanic, maybe its not a bad idea. But otherwise, you go and buy a chipper, rent it out. The thing blows a hydro hose because the user beat on it. That night you get a big storm and can't use the machine the next day. So if you have more than one machine, maybe. But I wouldnt if i was you.

[captdevo]

i rent my Walkers, especially for spring and fall cleanups.

i also rent decks from time to time.

Dave

[Guido]

bit of a bruisin here and there, but if you keep up on the maintnenace and have the contract written the right way, it shouldn't be that bad. You rent the machine from me, I check it out when you bring it back. If something isn't right, you pay to fix it. Plus the money it costs to rent the machine should include a "pillow" to help ease the pain if something serious does happen down the road.

Now, like I said before I'm not talking about opening up Guido's rental center or anything like that, just on a small scale so the machines aren't collecting dust.

And, Of course, I would push for them to sub me out the work first.

[Island Lawn]

I have thought (am thinking?) about this.

I would like a good aerator, but have yet to create a way to "afford" the investment.

The rental shops around here seem to reserve their junk for me, or more likely, only stock junk.


Surely there are other LCO's in my hood experiencing the same aerator problem.
They might even have one they might rent to me!

Unfortunately, we don't talk.
I get the vibe that I'm viewed as a competitor and/or joescrub82.

[Guido]

Originally posted by Island Lawn
Unfortunately, we don't talk.
I get the vibe that I'm viewed as a competitor and/or joescrub82.

Maybe they get the same vibe from you and thats where the attitude problem comes from? Try having a get together with all of them. If its a bunch of you, you will all feel more comfortable. Step up and make it work, the worst thing that can happen is that you guys start helping each other out right??

Good Luck!

[Island Lawn]

Thanks a lot for the help Guido!
To say that you do alot around here is an understatement!

I hope they pay you well!
You certainly put your hrs in! LOL


When you say, "try having a get together"...

Well now that you mention it, the state professional association here (SCNLA) is having a Fall Tour at a local wholesale nursery later this month.

I'll have to get together a list of questions / ideas!
Oh yeh, and askaround about an aerator.

Thanks again


:cool:

[Guido]

Thanks for the kind words, and good luck at the event at the end of the month. You should be able to meet and make some good contacts there.

Best of Luck to you! Glad I can be of help (at times) ;)