Does Anyone Rent their Equipment?

[nimblemotors]

I am sure the large majority of people don't rent their equipment, because renters can mistreat them.
However, even if you have to fix things, it seems a good profitable business, particularly when renting older equipment
that doesn't have a high cost to purchase.

 

[4570Man]

Yes. My rate is about 40k a day on my 310. Don’t bother bringing it back. If I had the proper insurance I’d consider renting a skid steer since they’re pretty much indestructible. I’d never rent anything else especially a tractor with loader.

 

[Big Barn]

Yes. My rate is about 40k a day on my 310. Don’t bother bringing it back.

I use a similar scale for rental rates. I even throw in a $10 Starbucks gift card to show I appreciate their business.

 

[mred2]

Without the proper insurance, you might be better off to sell it to them. One accident and they own the tractor and maybe a lot more.
The big rental companies know this and it is part of doing business. If I were in business to rent, and my boss it, there is profit in it. We only rent large equipment and only for 3 month plus. They must provide proof of insurance or pay out the back side for it. The insurance pays for damage to equipment, plus liability for law suits.

 

[Industrial Toys]

A friend and customer closed their rental business, albeit no big equipment. The Insurance company put them out of business, despite having no claims, the rates just kept going up.

Then, closed their small engine business too. The odds are just stacked against the little guy. All your costs keep going up and customers expect you to fix stuff almost for free! Man, I heard some stories.

 

[4570Man]

Earlier this year the rental yard had some idiot wreck a JD110 and cause 30k in damages to the machine. They delivered the machine and he decided to tow it somewhere else with a half ton and things didn’t go good. Luckily nobody was hurt or the damage tab would be way higher.

 

[Industrial Toys]

That's a pretty flimsy tractor! Yeah, personal injury would make the tractor damage inconsequential.

 

[4570Man]

A JD110 is about the same thing as a M59 and they’re neither one flimsy. They’re far robust than a compact tractor.

 

[/pine]

Most of the equipment lease and rental contracts I have seen have pretty rock solid liability waver clauses...some include insurance...

 

[4570Man]

Most of the equipment lease and rental contracts I have seen have pretty rock solid liability waver clauses...some include insurance...

Even then you’re on the hook for damage or theft of your machine.