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How To Set Up An Equipment Rental Center | Construction Rental Business

Own Your Living

Buying industrial machinery for infrequent projects requiring specialist equipment is usually not recommended or necessary because the equipment is expensive. Still, you may only use it once or twice a year. More importantly, storage is another major issue. A more practical option is to rent or lease industrial equipment. The US has seen significant development over the past four decades, and many well-established construction companies opt to rent industrial equipment rather than buy it. Many retail stores also rent out smaller industrial or cleaning equipment. While the industrial equipment rental business is lucrative, its success depends on many factors. The industrial equipment rental business also requires a significant amount of capital, storage space, and human resources.

How To Get Started In The Equipment Rental Business

Before you consider opening an Industrial Equipment Rental Business, you need to know if your local area has a demand for heavy equipment rentals. For example, there is usually a need for industrial equipment where extensive construction or roadworks are underway. Still, in well-developed areas, the market may be insignificant. The other characteristic to look for is if there are other established rental stores within your community. Opening a rental store away from the city center is not recommended as transportation costs or delivery can be very high.

Rental Center Business Plan

Here are some business plan examples for the rental industry

There are some handy services available online

Some business plan templates that you should consider include:

Rental Companies Near My Location

It is vital to know what industrial equipment customers may require. A homeowner may want an industrial vacuum cleaner. A home builder may require a skylift to install lights. A window cleaner professional may need a scissor lift to reach high elevations, or a laborer may need a forklift truck. Standard industrial machinery regularly rented includes truck loaders, lifts, excavators, backhoes, portable generators, etc. The key is to only stock equipment you will frequently rent because industrial equipment can be expensive and needs significant space for storage.

Here are some handy links to get you started

Let Your Rental Center Business Flourish

If you want to experience lasting repeat customers, it is vital to do the following:

Offer excellent service
Give good advice and educate the customer on the use of the equipment.
Make sure that every customer has a hassle-free experience.
Don’t nickel and dime your customers; if they are late by 30 minutes returning a piece of equipment, just let it go.
In some cases, your employees may assist the customer in setting up the equipment at no cost.
When a customer arrives for the first time, make them feel welcome. Be more than just a rental place.
Offer services 24/7 if possible.
Offer online booking of equipment and reply promptly to all messages.

Will The Industrial Rental Equipment Business Continue To Do Well?

Yes, by all accounts, the rental industry is expected to grow. The housing and building industry is flourishing, and the industrial sector is expanding. There are new developments in almost every city. So there will continue to be a demand for industrial equipment.

Rental Tools And Equipment Company Market Research

Performing market research for your rental equipment business plan is the first step in determining whether a business opportunity exists locally. You will also use it to assess consumer expectations and competition level to estimate the business’s potential and, therefore, your project’s viability.

In particular, you should ask yourself:

What is the economic situation in your area? Is it growing or shrinking? For what reasons?
What are the equipment concepts that work? The ones that don’t work?
What difficulties will you encounter?
Franchise or independent equipment rental company: which is better?
What are the most popular product categories?
How many times a year, on average, do people rent equipment?
What are the peak periods and the off-peak periods?
What is the average price spent per customer?

You will need to assess the area’s commercial potential. Depending on your target clientele, individuals or businesses, you will need to ask yourself the following questions:

What is the local population count?
How many companies are likely to be interested in the equipment offered?
What are your best options? (city center, shopping center for individuals, industrial district, business parks for manufacturers, etc.)?

You will then need to familiarize yourself with the businesses already in the market you wish to join:

How many equipment rental companies are already present?
Where are they located?
What type of equipment do they offer?
Are they franchisees or self-employed?
What is their pricing policy?
How much area do they have?
How many employees do they hire?
What are the margins?

Once you examine these factors, you can determine whether the market is large enough to support a new participant.

Rental Center Online Services

In today’s world, a great deal of purchasing takes place online. Hence you need to develop a comprehensive website showing all your equipment, the rentals’ duration, and the rental prices. Because most industrial rental equipment is cumbersome, you also need to offer delivery service in most cases. Most rental companies charge anywhere from $200-$500 for just delivering some heavy rental equipment. You need to declare if a deposit is required and what will happen if the equipment is broken or stolen. A FAQ section should be available for the customer.

Tool Rental Company License, Insurance And Permits

Before you can operate your rental business, you’ll need to register and obtain the necessary permits. You will also need to contact the local Fire and Safety Department for an inspection.

Dealing with heavy equipment can potentially cause injuries to both workers and renters. It would help if you had workers’ compensation insurance for your employees and liability insurance to protect against any customers’ litigation. You will also need general insurance to cover the equipment against theft, damage, or fire.

Insurance

Here are some insurance companies that specialize in rental businesses

Here is a list of some standard insurance companies

Create A Partnership

One of the best ways to boost an industrial equipment rental business’s profits is to create partnerships with other associated companies. For example, you may want to partner with companies that sell small industrial tools, home builders, highway construction companies, demolition experts, garages, etc.

You should contact these companies and ask them if they are interested in a referral partnership. This will be a win-win situation for both companies. However, it is essential to make bona fide referrals, or your partners may think you are sending them customers who have no interest in purchasing their products.

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Equipment Rental Contract

It is essential to have a solid rental contract when dealing with equipment rentals. If you want to avoid hassles later on, you should include the following in the agreement:

How long is the equipment going to be rented, and the fee per hour/day
How should the equipment be handled? You must include all potential problems and safety features
When does the rental period start and end?
What should the customer do when the equipment malfunctions?
What are the penalties for damage, theft, or late returns?
Who should the customer call when there are problems with the equipment

You must communicate each of the following points with the customer. Avoid using fine or small print – this usually indicates that you are trying to hide something.

Here are some links to get you started

Where Do I Purchase Industrial Equipment?

Industrial equipment is costly, so you need to find out which manufacturer offers the best deals. You should invest your money wisely and only in items that you rent out frequently. Once the business expands, you can also buy more equipment. Some of the things to consider when purchasing industrial equipment for rental include the following:

What do your customers usually need?
Do not buy the latest high-end equipment but look for durable equipment that has withstood the time test.
Customers typically do not care about rental equipment, so look for used equipment or budget deals.

Power Tool Rental Charges

Before you price your rental equipment, check out your competitor’s price for the same rental item. To remain competitive, offer reasonable prices. In any case, renting industrial equipment is often associated with profits above 30%.

Maintain Your Rental Equipment

Since your business depends on your equipment, you need to take care of it. Thus, the first step is to maintain the equipment. When the customer returns equipment, you should thoroughly check it and fix all potential problems.

Keep the equipment looking new by enhancing the aesthetics with regular polishing, oiling, and waxing.

What Type Of Industrial Equipment Are People Searching For?

Generator hire
Ladder hire
Forklift hire
Tile stripper
Bobcat hire
Electric jackhammer rental
Concrete sander rental
Trenching machine rental
Floor grinder rental

Wheelbarrow rental
Impact wrench rental
Hole digger rental
Leaf blower rental
Core drill rental
Floor scraper rental
Drywall sander rental
Miter saw rental
Lawn dethatcher rental
Carpet power stretcher
Post driver rental
Tamper rental
Tree stump grinder rental
Genie lift rental
Mini backhoe rental
Transmission jack rental
Towable boom lift rental near me
Hammer drill rental
Tractor supply trailer rental
Equipment rental trailer
Shop-vac rental
Power tool rental
Skid loader rental
Core aerator rental
Boom truck rental
Table saw rental
Trench digger rental
Dozer rental
Brush mower rental
Dehumidifier rental
Leaf vacuum rental
Mulcher rental
Hand truck rental
Plate compactor rental
Pole saw rental
Concrete pump rental
Lawn roller rental
Concrete grinder rental
Wood splitter rental
Cement mixer rental
Power rake rental
Menards tool rental
Pallet jack rental
Sandblaster rental
Snowmachine rental
Rent a generator
Chipper rental
Brush hog rental
Scaffolding rental
Jackhammer rental
Lawnmower rental

More Rental Equipment

Ladder rental
Bobcat rental
Chainsaw rental
Rototiller rental
Trencher rental
Skid steer rental
Wood chipper rental
Sky lifts
Broom lifts
Scissor lifts
Forklifts
Truck loaders
Mini-excavators
Backhoes
Air compressors
Portable generators
Towable lights
Ground heaters
Plumbing snakes
Barricades and signs
Pipe threaders and accessories
Portable restrooms
Fans
Blowers
Dehumidifiers
Air chillers
Heaters
Air conditioners
Transformers
Water Pumps
Tanks
Sweepers
Carpet installation equipment
Scrubbers and polishers
Pressure washers
Vacuums
Electrical tools
Trailers
Trucks
Utility vehicles
Welding and accessories
GPS tracking tools
Payment system
Cashier
Security cameras
First aid kit
Cleaning equipment
Uniforms
Personal Protection items- gloves, masks, boots, eye goggles

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Rental Tools GPS Tracking

Today, one can use GPS tracking tools on industrial equipment to minimize the risk of theft. These tools can improve efficiency, let you know where the equipment is at all times, and keep the customer happy. The GPS tools also allow for speedier delivery of the equipment and provide real-time information.