What’s It Like Renting Out Equipment?
If you have heavy equipment that you’re thinking about selling, consider renting it out first. Renting equipment is a great way to temporarily offload your machinery, make some money, and maintain your investment. To better understand the process, we’re breaking down what it’s like to rent out your equipment.
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Before You List Your For-Rent Equipment
Before you list your prospective equipment rental, make sure the machinery is in top working order, that you won’t need it for any projects, and consider adding to your insurance coverage.
No one wants to rent faulty equipment, which is why you should perform an inspection of the machine before even thinking about renting it out, especially if you haven’t used it in a while. Make sure all functions are working properly, and the equipment’s maintenance is up to date.
You should also take the time to consider when you’ll need the equipment for use on your next project. If you have no projects planned, you can rent out the equipment for longer so it’s not sitting idle. Once you know when you’ll need your equipment again, make sure to build some wiggle room into the rental period so you get it back before your next project begins.
Since renting out your heavy equipment means different operators will be using the machine, you should make sure you’re covered for any potential liability risks. You wouldn’t want to jeopardize yourself or your business if the renter is injured operating your equipment, or if it malfunctions and causes disruptions in the line of work. You also don’t want another manager or operator tampering with your machinery when it could void the warranty on your equipment. Before renting, speak with your insurance carrier to see what coverage is available.
Set Your Price
A benefit of renting out your unused equipment is making some extra income. How much money you receive from renting depends on the price you set and its value of use on the market. If you don’t know where to start, take a look at how much local home improvement stores are charging to rent your type of equipment if it’s a smaller piece of machinery. Or, you can browse listings online from private sellers or dealers to get a better idea of the pricing range for heavy-duty equipment.
Promote Your Rental
Once you have your rental price, get the word out to prospective renters by promoting your heavy machinery. Whether you’re renting via word of mouth, social media, or an online marketplace, you need to get eyes on your equipment listing.
In your advertising, be sure to include the rental price, photos of the equipment, a detailed description, and even some videos of the machine in action. You should also provide contact information and be responsive when people reach out. You wouldn’t want to miss out on a potential renter because you weren’t answering phone calls or emails.
Draft a Rental Agreement
Once you’ve found someone to rent your equipment, make sure the rental arrangement is very clear. Work with a lawyer to draft a formal contract to protect yourself and your business. This rental agreement should detail: the cost of the rental, any security deposits, payment options and timing, rental length, equipment transportation or delivery information, who can operate the machinery, acceptable wear and tear, and penalties.
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After the Rental
When you get your for-rent equipment back, perform a careful inspection. Look for any wear and tear or damage that might violate the rental agreement. You should also check the fluid levels to see if you need to perform any regular maintenance.
Whether you have construction or agricultural units, someone else can put your heavy machinery to good use when you have downtime, which is among the many benefits of renting vs. buying equipment. Ready to get started? List your for-rent equipment on our nationwide marketplace online.
Arielle Patterson
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