Rent Out Your Equipment?

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why not become a rental business if your considering it this hard?

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It could be a possibility...long term. If I were to try it at a very small scale and see if it is beneficial.

If I could simply make more on the side so that I can afford to take Saturday & Sunday off (for the sake of my family) I'd be happy.--That's the goal for me.

You guys are a good sound board. Keep the input coming...
 
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I would consider renting out "some" of my equipment, only to those I know and trust.



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Jim- can I rent your spidey lift?
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John, NO !
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ahhh, cmon man. Ill be nice
 
id rent out stuff like the mini, not my bucket truck, chipper to a select few, chip truck to a select few. for sure theres a "you break it you fix it" discussion in there. i loan saws to some of my friends, others ill go do the cutting for them
 
Don't ask tree guys if you should get in the rental business. Ask rental business operators. They will be able to tell you what sort of overhead to expect, insurance considerations, liability waivers, repairs cycles. While it seems a good idea when equipment is sitting around, it may not be when it comes time for you to use it and it's a) rented out; b) out for repair or c) in need of replacement.

Up here one of the equipment dealers rents out stumpers, chippers, lifts, etc... All of this equipment is serviced after every use by his mechanics. They are then sold at the end of the year at a discounted price. It serves him many ways; cash flow, opportunity for prospective clients to use the gear before buying and, to have a secondary used equipment market that will capture the lower end buyers.

There is a construction company we have worked for that owns it rental business. They get all there equipment from there own. Sort of reverses the model you're thinking of.
 
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There is a construction company we have worked for that owns it rental business. They get all there equipment from there own. Sort of reverses the model you're thinking of.

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Interesting.
 
Where do you fit in? Are you going to run the business or do the work? Taking on a rental business will mean a whole different model and hiring someone who can manage it effectively. You will find that your equipment will not always be working as well and may not be available to you.

Be careful of diversifying.
 
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why not become a rental business if your considering it this hard?

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It could be a possibility...long term. If I were to try it at a very small scale and see if it is beneficial.

If I could simply make more on the side so that I can afford to take Saturday & Sunday off (for the sake of my family) I'd be happy.--That's the goal for me.

You guys are a good sound board. Keep the input coming...

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You want to run ( and grow) a tree service, start a rental service, AND take Saturdays and Sundays off?

Dude.....
 
In all seriousness... I bet if you poured your extra effort into your tree company, instead of taking on another business, you could get to the point of taking weekends off. I could not imagine trying to think of two business efforts at the same time!

Hope you get to the weekends off! Great goal!!
 
Jamin's an ambitious rascal, 3 boys and 1 on the way, guess we know what his favorite hobby is!
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Some people can make business ventures like this work, on a small scale, it might just be do-able.
 
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Jamin's an ambitious rascal, 3 boys and 1 on the way, guess we know what his favorite hobby is!
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Some people can make business ventures like this work, on a small scale, it might just be do-able.

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Amen Jim!
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And Jim is right. I'm just thinking of pitching the idea to my firewood and mulch customers. For a home based business, I get a lot of "foot traffic." And the people who come here are good folk. To me, it would be "date night" money for the Mrs. (We go out every Friday). Maybe even skiing passes for me and the boys? Something extra.
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I haven't tried it yet. And if I ever get something back broken, then I'll stop renting it out.
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You look to be a tree guy. You need to fix some hard rules about when you work. I agree with MCTinc, invest the effort into your tree business and start running a business. Read, "The E-Myth" by Michael Gerber. Look at ways to grow your tree business such that you can hire people to do the work and generate more revenue and profits. Right now u are only able to make whatever you can generate leaving you with two options; work more hours or charge more per hour.

There is a third option. Optimize the customer relationships you have by offering a better service. Do you have service contracts with repeat customers where they pay you an annual fee to monitor and assess their trees? In effect a PHC program. Include some inexpensive basic service, say mulching, on top of the inspection. Create a site plan with the all the trees located on the lot and a report that gives an overall evaluation of the tree conditions. Throw in a things they can do to improve the overall health of their trees.

Start selling to property managers, golf courses, condo corps, etc... Look to add a crew that will keep some of that equipment you're looking to rent out on the road. It could be a man and equipment rental even.


Take a small business course and a sales course.
 
We've have lent it as a courtesy to landscape contractors we have a lengthy relationship with. No issues as such.

A point brought up to me was the issue of the type of insurance needed to cover you in the event that a rentor seriously or fatally injures themselves or others while operating your equipment. As well, if the equipment is sitting around long enough for you to consider renting it out without adversely effecting your own work then you really need to be going after more work. Stick to the real work you do and don't get sidetracked into another business.

Just my 2 cents...
 
Man, renting is my regular income since 2000. I rent cranes and bought real estate in Asia. Now I rent houses in Phuket and analyze the villas. By the way advised villas for rent in Phuket. I plan to start working with them in a few months.
 
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I'll chime in here... I have rented out equipment before, but I finally quit due to the liability factor. When i called my insurance agent and told him what i was doing, he told me that to make it legal would cost me a minimum of $300 per month just on my lift! Plus, if something went wrong and someone got hurt, it could get ugly. Also, how many guys doing work on the side has the resources to pay damages if something goes bad wrong? It will always fall back on the equipment owner.

There is a company that started up here in Missouri called Equipment Share. That was their business model - you registered your equipment with them, then they would rent it out for you when you were not using it and give you 70% of the profits. They tried to keep their rental rate 20-30% lower than regular rental companies. They have been wildly successful, but here is where they have the edge - They have their own insurance company, they will take in nothing that is less than 3 years old, and they do all of the servicing themselves. Now when I called them recently because i do have a new lift now, and was interested in their program, I was told that to be a part of their program I need to purchase from them. So that is where that went.
 
Not an arborist but have a lot of saws and other power tools of every kind. Almost every tool I have ever lent was returned dirty and most with signs of mistreatment. If you are a rental outfit this is just the way of things and a cost of doing business, if you are an owner who takes care and pride in your tools this IMO would bring nothing but heartache.
 
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