Equipment rental is a thriving business that can create a lucrative income stream. However, it doesn’t matter whether you are renting out TVs or luxury cars, there are a few things you need in place to protect yourself. In today’s guide, we’re going to go through a few ways to start your new equipment rental business with a bang. Let’s get started right away.
Choose your weapons
Before deciding on the type of equipment to rent out to people, make sure there is a big market for it. Check out online guides to find some of the best industries to get involved with for some inspiration. You will also need to ensure that there aren’t other businesses in your area renting out the same equipment. Oversaturating the market is not going to do either of you any good.
Invest in excellent stock control
In an ideal world, all your equipment will be hired out to people at all times. The reality is, though, that you will have inventory to store somewhere – which will cost you money and space. It is imperative that you ensure you have minimal inventory to keep your costs of sale down. Invest in the right stock control software and systems, and you will find that you have a positive impact on your bottom line.
Make stringent checks
Whenever you rent out equipment to anyone, you need to make sure you know who they are. The risk of theft is, unfortunately, a big one, as many will see your rental business as an easy way to get expensive items for cheap. Make sure you run an Arrest Records Search to root out any potential criminals, and also perform a credit check. Bad credit doesn’t mean someone is a criminal, of course. But, it might just mean they will be under a lot of financial pressure, which can lead to non-payments or bad decision making.
Your checks will minimize a number of thefts – but won’t eliminate them completely. It is vital, wherever possible, to tag your equipment and use as much security as possible. Doing so will put off many potential thieves.
Be clear with terms and conditions
Be upfront with your customers when it comes to them signing their contracts. You need to include rental start and end points, as well as advice for the customer if something goes wrong. Think about wear and tear, too – what is fair and acceptable to both parties? Be clear about penalties and late payment charges, too. It’s only fair to your customers that they understand how much they will have to pay.
Focus on your customer
Too many rental businesses treat their customers with a little disdain. If you are fair and give them a great experience, then, it can help you stand out from the crowd. Ensure they enjoy the experience, and find it easy – and try to avoid adding little charges to get your hands on every last cent available. While you might make a bit more, a long-term customer who uses your service for many years will be far more profitable.