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Renting out equipment

Discussion in 'Lawn Mowing' started by Guido, Aug 31, 2001.

  1. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    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.
  2. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    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.
  3. Premo Services

    Premo Services LawnSite Bronze Member
    Posts: 1,516

    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.
    DON`T MESS WITH THE MANS EQUIPTMENT!!!!!!!!!!!!!!!!!!!!

    HOWARD JONES LawnSite Member
    Posts: 233

    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.
  5. Remsen1

    Remsen1 LawnSite Bronze Member
    Posts: 1,020

    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.
  6. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,664

    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.:)
  7. CT18fireman

    CT18fireman LawnSite Senior Member
    Posts: 611

    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 LawnSite Senior Member
    Posts: 555

    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
  9. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    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.
  10. plow kid

    plow kid Banned
    Posts: 516

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

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