Renting out equipment

[jmfox]

I'm considering renting my compact track machine. I have plenty to do but my schedule would allow some rental days. Does anyone here have experience renting their machines to others? I'm thinking that grinders, rotary choppers, and hammer attachments should not be allowed. Maybe even hard surfaces should be avoided.

jmf

 

[Bill Barrett]

IMHO not a good idea!

 

[nobull1]

I agree not a good idea. I have a problem letting my employees use my equipment. Hate to think what might happen when it's out of my site with and inexperienced or uncaring operator. I see a small return for a big risk of costly repairs. Just my opinion.

Brian

 

[Bird]

As with many business ventures, you might make good money renting it out, or you might lose big money. Obviously, equipment rental places must make money or there wouldn't be so many of them staying in business with so many different kinds of equipment available.

 

[jmfox]

I tend to agree that renting to the general public is a crap shoot. What would you think about a supervised rental where the renter is checked out before they begin and periodically throughout the rental? Another option would be to take on a partner who would operate it as if he owned it. Are there any other scenarios that I should consider? I have other obligations that might distract me for long periods of time and I really don't like the idea of having to carry the expenses while the machine is doing nothing but sitting and depreciating. The project will produce salable lots and I have a couple of years of work to do on a large tract development, so the machine is worth owning. Is everyone here realizing the value of their investment as owners/operators/contractors? I understand that machines are worth more with low hours, but also I understand the benefits of keeping the money coming in before the payments go out.

jmf

 

[Richard]

I agree with the others...don't do it.

I don't agree from any experience of renting anything out, I've got experience being the one you don't want to rent to!!

Before I bought my own backhoe/loader (JCB), I had never run any kind of equipment like this.

building new home, we rented a skidsteer. Now... my brother in law HAS owned stuff like this and in fact, several years after this event, actually got into the rental business himself (dozers, bobcats, lifts...)

We had my rented bobcat near my retaining wall, it needed refuled. We climbed a step or so up on the wall to refuel it not realizing that when we took the "fuel" cap off, it was actually the higher hydraulic fluid cap.

I think we put in about 10 or so gallons of diesel into the hydraulic system before we caught what we did.

I don't know if that hurt the machine long term or not but we ran it a while longer and then got it back to the rental place (running)

Our intent was good/nice, we just pulled a stupid moment when we did that.

(we did try to siphon the gallons back out and I've got NO idea if the diesel would have readily mixed with the hydraulic fluid or if it would have sat on top)

 

[nobull1]

As Bird mentioned you might or might not make money renting out your piece of equipment. The advantage of the rental companies is spreading their income over a large volume of products, which spreads the load of the potential losers. If a rental company loses a drive motor on a Kubota excavator @ $5000.00 it will make it up with their other equipment. If you were to lose a drive motor due to customer abuse (probably never prove) it will take a long time just to pay for the motor. Another thing to consider is insurance. If you were to rent your machine you would have to notify your insurance company, and they would probably want a premium for that type risk, if you can get it at all. The people who rent your machine most likely won't have the same respect and caring that you will. They might leave it in a spot that might lend itself to vandalism or theft, without a second thought.

When I rent a piece of equipment for my landscaping /excavating it is usually because we don't have it (just rented a 463 Bobcat) or don't want to use my own equipment for that purpose . If it is a job that would be hard on my equipment I would try to rent the equipment to save the abuse on mine.

At first it sure seems like a waste to let your machine sit there when your not using it. The cost of owning this machine, I assume, was calculated on not having to use it for other projects to pay the bills? If the project was exclusively the reason for buying the machine, my first thought is to leave it sit. The advantage is it is always available and ready to go without "excessive" wear and tear, as well as the potential breakdowns that might occur due to the previous rental use.



A partner could be a good idea, if you can find one that will use and care for the machine as well as you would. This keeps control of the machine and the maintenance in your's and his hands.

In one of my previous lives I worked for a rental company for 7 years, and it really turned me off from renting equipment to people, for a number of reasons.

Brian