Equipment Rental company ... starting one

Discussion in 'Industry Surveys & Polls' started by imjustdave, Apr 29, 2007.

  1. imjustdave

    imjustdave LawnSite Member
    Messages: 28

    Interested if anyone here is in the rental side of the buisness??? I have been thinkning of buying a few MinEX's, skidsteers, and maybe a few TLB and renting them out. maybe 4-6 machines total. 1-2 of each machine.

    I know last summer it was really hard to find a Excavator, and there is competition around here but hay competition is great for buisness.

    So can I make $$ on a small scale?
    What can I expect ?
    Anything I should stay away from?

    I have a parking location allready, need some fencing and some advertising but otherwise it's right off a majior highway.

    Any advice would be great.

  2. mcwlandscaping

    mcwlandscaping LawnSite Gold Member
    Messages: 3,163

    just guessing that insurance is gonna be pretty high for you on that stuff.
  3. Classified

    Classified LawnSite Senior Member
    Messages: 988

    My inlaws just got out of the business. Around here its a dying breed. They owned the store for 29 years and the customer base/demand has stedily gone down. The big problem for them is places like home depot and other large companies wer under cutting everyone since its not thier primary bus focus and they are happy if they are just close to breaking even. Good luck with it, I was given the option to take over the bus and decided it really wasnt worth the hassle.
  4. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    Ok, Taylor Rental charges almost 300.00 to rent a skid steer for 1 day. and it is rented and out a lot.

    Investing as little as 10,000 on a skid steer, with a 320.00 a month payment. insuring it for all loss for 500.00 a year, parking the machine in front of your house with a large sign on it that says rent me 175.00 per day. or maybe even 150.00 a day and as long as you are legitimate and accept credit cards it would be foolish and a seriously poor business decision for anyone NOT to rent it from you. With a insidiously low daily rental fee and depending on the local need it is possible the machine could be rented out every day or even long term by just 1 renter. 150.00 per day for a month is 4,500 if you make the daily rental fee so low as to have people banging on your door It is not inconceivable that you could become wealthy or well off. even as low as 100 a day that is 3 grand a month, just do the math. only rent to people with drivers licences and credit cards and maintain a rental standard as to whom you rent to. Landscapers in my area charge between 95.00 and 120.00 PER HOUR with and operator. the earlyer poster who said insurence will kill you failed to inform you that YOU do not pay for the insurence the renter does.

    But my personal comment is you would be foolish to buy more than 1 without a market study So test the market with just 1 skid steer and a backhoe attachment. the Key is the super low daily rental fee. OH and please don't do it within 50 miles from me.
  5. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    I forgot to ask what the hell is TLB?
  6. imjustdave

    imjustdave LawnSite Member
    Messages: 28

    You know what it is ....

    are you ready

    TLB = Tractor Loader Backhoe....

    I did the same thing when I saw TLB the first time too. a TLB WTF is that. hehe

    WTF = What the Funky is that. :)

    Im still deciding, the only issue with a few machines is in my area there are a few competitions 2 and some new people "Home Depot" so that 3 in about 2 miles apart. If I did this I dont' want to have a store front, maybe a shack but not store.

    I have a chaep place to park items with plenty of view but I have noticed the local yards are full with equipment right now, I mean 4-6 of each item. mini -ex. bobcats ETC.

    There is a bobcat guy called 100 day bobcat but his stuf looks junky. Thanks guys

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