Renting out you're own equipment?

[Pops15]

I have a personal use JCB 8032Z mini-ex and was thinking about the same thing - renting it to a friend who is a contractor. I had not thought about the level of complication that this could involve. I have no worries about him abusing it because his excavator operator taught me to operate mine and he taught me about the maintenance. So I know he is thorough. Possibly if his insurance covers the machine while he is using or transporting it then it could still work, but I know some more questions to ask and things to consider.

So, thanks though it wasn't my thread!

Lee

I doubt if his insurance would cover it, but if it does you still need a commercial liability policy!

 

[scoutcub]

Appreciate all the great replies.
A bit more background info - the one reason I would "trust" this particular sub is that I've spent quite a bit of time with him over the last several months. He has poured my front sidewalk, rear patio, and garage floor. He has voluntarily brought over more of his own equipment to quicken a side job of digging against my basement wall to waterproof it. He has done a pole barn floor for my BIL who probably interviewed 5 or 7 concrete subs. He is very particular about his work and how he keeps his equipment...which is the only reason I would consider allowing him to rent it.
Having said all that, it probably won't happen, and I'm certainly much more hesitant to allow it to happen. Excellent points about the insurance, offering to hire me, and advantages of my machine over a rental companies machine.
I initially thought it a great idea as I'm certainly not using it every day, and it's sitting much more than operating, and turning that idle time into $$$. I'm not ruling it out, but will proceed with extreme caution with an appropriate contract, insurance, and only if it will be worth my while...$$$$.

thanks again!

 

[EddieWalker]

You just said that it's sitting there more then operating it. If you were to sell it one day, you will get more money for it with the fewer hours it has. Renting it out, and/or having it working more will mean more hours. More hours means more wear on components, and how much sooner you have to replace things as they wear out.

There is a reason that companies get rid of equipment when it hits a certain number of hours. After that point, it becomes more expensive to keep the equipment operating because of repairs.

Good luck,
Eddie

 

[crazyal]

Another thing to remember is if you have no way to move it and have to hire a truck to do so you could run into problems if the contractor doesn't pay and you have to go get it. I know you trust him and all but things happen, you have to be prepared for the worst.

 

[Techsan116]

You want to know why most people don’t have any money and sit around griping about how Jeff Bezos makes a billion a year and they can’t pay their mortgage? I’ll tell you why…because most people have the same attitudes as these losers on this thread. Don’t listen to all the naysayers. Make sure it pencils out, get the proper insurance and go do it. A 1025R with a brush hog is renting out for $400/day in my area. You can buy one brand new for $18k and finance for 0% or close to it. In 5 years, it will still be worth $14k or so, so it cost you $4k to own it for 5 years. You only have to rent it out two days a year to cover your cost. Sure, you have maintenance and insurance will be expensive, but if you can rent it out just 20 days a year, you’re talking decent money…and a free tractor for your personal use. If you don’t want to do the math, it’s $8k a year to pay for maintenance and insurance. I’m pretty damn sure that for $8k a year you can pay for insurance on a $18k tractor, maintenance and still have plenty left over for profit.

 

[PILOON]

Even between brothers renting/loaning gets to be a problem.
One case I know of, the borrower was a bit of a red neck and pushes machines to their limit.
More often than not he'll break something and then claim it was all warn out and due to break anyway.
Never his fault!

Even broke a door off a piece of equipment (costly) and he claimed the latch was defective so not on him.

 

[bcp]

Sounds like a good time to sell it to the guy who wanted to rent it.

Bruce

 

[Code54]

You want to know why most people don’t have any money and sit around griping about how Jeff Bezos makes a billion a year and they can’t pay their mortgage? I’ll tell you why…because most people have the same attitudes as these losers on this thread. Don’t listen to all the naysayers. Make sure it pencils out, get the proper insurance and go do it. A 1025R with a brush hog is renting out for $400/day in my area. You can buy one brand new for $18k and finance for 0% or close to it. In 5 years, it will still be worth $14k or so, so it cost you $4k to own it for 5 years. You only have to rent it out two days a year to cover your cost. Sure, you have maintenance and insurance will be expensive, but if you can rent it out just 20 days a year, you’re talking decent money…and a free tractor for your personal use. If you don’t want to do the math, it’s $8k a year to pay for maintenance and insurance. I’m pretty damn sure that for $8k a year you can pay for insurance on a $18k tractor, maintenance and still have plenty left over for profit.

WOW - you bring back a post from 10 years ago and start your first post off by calling the previous posters losers..... May want to rethink the way you introduce yourself to people.

 

[grsthegreat]

If you ever want to own a real,piece o crap, purchase a used piece of rental equipment.

soon your excavator will look like that. Renters just dont take care of the equipment.

a buddy of mine rented an excavator to dig his basement. I was over there watching him slam the bucket repeatedly into a piece of granite trying to break it. When i asked why he was doing it, he just shrugged his shoulders and said “ who cares, its rented”

 

[fried1765]

You want to know why most people don’t have any money and sit around griping about how Jeff Bezos makes a billion a year and they can’t pay their mortgage? I’ll tell you why…because most people have the same attitudes as these losers on this thread. Don’t listen to all the naysayers. Make sure it pencils out, get the proper insurance and go do it. A 1025R with a brush hog is renting out for $400/day in my area. You can buy one brand new for $18k and finance for 0% or close to it. In 5 years, it will still be worth $14k or so, so it cost you $4k to own it for 5 years. You only have to rent it out two days a year to cover your cost. Sure, you have maintenance and insurance will be expensive, but if you can rent it out just 20 days a year, you’re talking decent money…and a free tractor for your personal use. If you don’t want to do the math, it’s $8k a year to pay for maintenance and insurance. I’m pretty damn sure that for $8k a year you can pay for insurance on a $18k tractor, maintenance and still have plenty left over for profit.

"$8K a year to pay for maintenance and insurance"?
On a Cat 312C excavator ($80K used machine)?
I don't think the numbers would even come close to working for me!