leasing lawns and equipment?

Discussion in 'Lawn Mowing' started by jeffex, Dec 24, 2005.

  1. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    In 2006 my son will be working full time as an auto tec. and I will loose my help. I can handle the current # of lawns myself but it cuts into my pressure washing business(more profit). I don't want the headache of hiring an employee and the paperwork involved. I am considering leasing my customers and equipment to a sub-contractor. They will be required to have Insurance( I pay only $300) and I will train them. Just as if they went to the local tool rental place and signed a rental agreement for the day for mowing equipment. I would word the customer lease to specify terms of quality of service performed by the sub. Along with their rental agreement they would be reg. to sign a non-compete for my zip code specifying the terms of leasing the customers and not building their own route in my area. I couldn't prevent them from starting their own business in another zip code but I can protect my territory. Naturally their % of profit will be higher than an employee but it seems to me a cleaner deal than the accounting work involved in having an employee. I have no problem getting work but in order to grow I will need help. Do people farm out their accounting for employees to a service? Is this LEASING idea plausible? What do you think?
     
  2. Creative Lawn Care

    Creative Lawn Care LawnSite Senior Member
    from NC
    Posts: 271

    I think it sounds like an absolute nightmare. Think I would just hire one good helper.
     
  3. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,659

    Is your son not interested in the business? Maybe lease to him or increase his pay rate so it is profitable to him instead of letting another person make money from it. He could surely make more from the business then as a tech in my opionion. I spent 20 years flat rate, I can overhaul an auto trans, fix electrical problems etc but make more pulling weeds and cutting grass lol
     
  4. Tyner Lawn Service

    Tyner Lawn Service LawnSite Senior Member
    Posts: 328

    I have done very similar sub work but you need to make sure you hire the right person. Our business is a little different than some. I hope some day to sub all my work out. I think subbing to more than one person would work because then you have a backup plan in case one of them gets sick or does not get along with a certain customer. Example 100 mowing accounts find 3 good subs and also have them run your signs. I have found if they are already a lawn service and pull up to you customers lawn it some time confusses the customer and they think you are retiring off them by letting others do the work not thinking that you make less money.
     
  5. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I am considering a similar scenario. Subbing out the jobs and leasing out the equipment, 1099 the subs. I would do all the billing and still inspect the properties. Help keep the subs legal handling all the insurance/bonding stuff. Also set them up with a good tax guy so they can use the benefits of small business ownership. I think it would be a real gift to a former employee, or anyone else for that matter. I wish someone would have offered me that kind of opportunity 20 years ago. I have not heard of anyone else doing this. It is likely though instead of seeing a great opportunity all they will see is you and I making $$ for what they perceive as doing nothing. Just have to see how it goes.
     
  6. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    This is all fine an dandy .... BUT in the real world .... . I just can't see this working

    Look at it this way .... would you do it .... would you be the sub-contractor in this situation .... would you go out perform all the work .... pay me to use my equip .... perform the daily-weekly maintenances on that equip ...... than allow me to go thru the properties n than tell me that I'm doing this correct or not doing this correct

    Than on top of all that .... pay me part of your hard earned $$ ..... because I'm "leasing" you the customer base n my equip

    What if I don't like the equip ..... what happens when a NEW customer approaches you ... do you ask them to call ME .....

    This has ssooo many .... what if's .... that one's head could spin .... what ya need to do is .... first figure out if your running a business or if it's running you .... hire a foreman ... pay em well ..... advo the %^$# out of the area ... hire employees n run crews .... or just focus on the pressure washing business n sell the route

    OR you could try the idea ... n it may work a month or two ... than some nightmare gonna show up ... be mid summer start to get busy ... the sub contractor say's F this bales n leaves ya empty .... loose the whole route .... or he just buys his own equip n says later gator .... I'm gonna just intro myself too the customers n let them decide who's gonna cut it ... me the guy who has been showing up or you the guy who just subbed all the work out .... with employees your still the boss

    Even with some sort of "non compete" .... you would still have to take em to court .... pay some lawyer .... n it would be an expensive run at it

    Maybe I'm wrong .... but if you really are looking at this thing to go thru .... you should get some good legal advice as the next step

    Good Luck .... hope it works out
     
  7. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    I think this would be a bigger headache than employees, JMO
     
  8. Tyner Lawn Service

    Tyner Lawn Service LawnSite Senior Member
    Posts: 328

    Actually if done correct subbing is no different than a guy who builds houses and subs out all the types of work done. It's amazing how many will do the work for you just as long as they don't have to deal with finding the work or talking too much to the customer. It has it's pro and cons.
     
  9. Tyner Lawn Service

    Tyner Lawn Service LawnSite Senior Member
    Posts: 328

    I'm talking sub the work,not the equipment and the down side is you have no control over them getting sidework that you would get if there. Also you have no equipment to repair. I would more or less franchise it.
     
  10. Tyner Lawn Service

    Tyner Lawn Service LawnSite Senior Member
    Posts: 328

    When do I start BOSS?? LOL!!
     

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