Anyone into the rental side of things??

[SNOW JW]

Looking at branching out a bit we have a trucking biz that stays pretty busy but we haul for many contractors in the area that we know that need a place to rent a Mini X and skid steer that is not over 1 1/2 hrs away and sometimes 3hrs away if they are sold out. Also I need a mini and skid from time to time as well for small jobs and would be nice to have a write off for taxes.

So with that said I have my truck insurance I have general liability 2 Million but what insurance does a guy have to have for renting out a skid and a Mini?? Just looking for help and or pointers to get me started in the write direction so I have somewhat of an idea of what I need when I start talking to insurance agents.

 

[ddigger]

It has been my experience that machines that contractors and home owners rent bare tend to really get beat up and recieve very little if any service. It sounds like a great idea, but prepare yourself for a string of unnessarry repairs. I have owned excavators since the 80s (80,000lbs) class and make my living doing almost all rental work, never bare, I run it or it doesnt go. Owner operator.

 

[AKfish]

I've rented a fair number of SS, excavators, mini-X's, tractors and TLB's over the past 20 years.

Dealing with the salespeople and mechanics that service the machines; you'd best have a good service agreement with whoever you purchase the equipment from... 'cause they'll need repairs!

The best rental is with a construction firm or utility company (gas, electric or telephone) for the construction season - 4,5 months. The worst rental is a weekend rental with a homeowner... the real profit there is the delivery charge - to and from!

AKfish

 

[MessickFarmEqu]

We do some side rental. Its very hard to turn a profit, industry folks show the rentals basicly writing the cost of the machine down to nothing then turning a profit when you sell it. We never hang into things long enough to do that.

As for machines. Skid loaders are excavators are easy to rent. The wear and tear even from abuse is minimal (get solid flex tires). The #1 rental excavator that we see is the Kubota K008-3. Its small, light, anyone can trailer it, and totally bullet proof.