Equipment rental

[kebrowns]

Was just thinking about renting my equipment. Would it be wise to go into that directions.

[White Gardens]

Depends on what it is and how often you use it.

We still rent just about every smaller piece we need such as an aerator, power-seeder, cut-off saws for paver work, and attachments for my mini skid.

In 7 years I still haven't had the number come to a point where we can justify buying some of that stuff listed above. For an example, aerations, we do maybe 2 days worth of them, so rental is a no-brainer.

That and there is no need to service that stuff when not in use as the rental house does all that.

The only piece I dropped the money on was a back-hoe attachment for the mini skid as no one in the area had one to rent.

.....

[sjessen]

White Gardens made good points. Now, if your primary business is cutting grass it would make sense to own your own mower. You could rent one, though, while your unit was in the shop. It is really easy to get a bunch of $ tied up in equipment that is used very little. For instance, I did purchase a slice seeder but got a used one in good shape for $275. It has proven to be a good investment over the years. Another item that is good to have is a chain saw. It may not be used all that much but sure is nice to have available when needed.

[kebrowns]

Sorry I meant to say to rent out my own equipment to others to use. Like a trailer package. But then again I would worry about them stealing it.

[sjessen]

Originally Posted by kebrowns

Sorry I meant to say to rent out my own equipment to others to use. Like a trailer package. But then again I would worry about them stealing it.

People are rough on equipment. What if they bring it back damaged or broken?

[elbow300]

I think the decision to rent or not will depend on demand. In my opinion you have to identify your target market. Grass cutters will look for rental equipment only when their equipment is down or stolen. Short term rentals I would imagine. It would not be cost effective for a company to rent long term. Do the mower shops in your area stay behind on service? Is there another company in your market currently renting? Do you have enough equipment to support your own operation when you are renting, or are you looking to stop service and strictly rent? Who is responsible for service and repairs?

It is an interesting concept... let us know how it goes!

[JesseN]

I believe in many cases renting trumps owning until you start realizing depreciation, tax, and financing advantages.

My company isn't at this stage yet but I used to work at an equipment company and one of my buddies has a gravel pit that runs a bunch of equipment. He was explaining to me how their depreciation works and buying equipment saves them a ton of money come tax season.

[elbow300]

Originally Posted by kebrowns

Was just thinking about renting my equipment. Would it be wise to go into that directions.

Did you decide to rent out your equipment? How did it go?

[SECTLANDSCAPING]

The only equipment I rent out is a skid steer with operator included.

In my area a skid is $275 a day and attachments are $200-$250 a piece. Delivery/pick up is another $100.

So I deliver it, my guy operates, then I pick up for about what the rental yard charges. The main reason I started doing this is because I have no need for 2 skids 7 days a week.

[nnusskern]

If you do mowing equipment your best bet like mentioned above would be for when someone has a break down. If you go this route I reccomend teaming up with dealers and renting people equipment while it is in shop. It may be hard to get this business going smoothly but in my opinion it would be a cery viable niche.
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