If you own heavy machinery like a skid steer, backhoe, or bulldozer, you already know those machines are in high demand.
If you had a dollar for every time someone asked if they could use one of your machines, you would be retired, living in Costa Rica, sipping on a Pina Colada while eating a fried pickle sandwich. You could make that a reality, minus the fried pickle sandwich of course.
Renting your machines isn't quite as simple as putting a "for rent" sign on the cab and taking calls from interested parties. There are definite steps you need to take to be sure you aren't getting into more trouble than it's worth.
First, you need to determine if renting any of your machines is something you can and want to do.
If you use your a particular machine on a regular basis, and can't be without it for any length of time, that machine is probably not a rental candidate.
The last thing you want to do is rent a machine and have the renter fail to get it back to you in time for you to start your own job. What you want is a machine you can do without for an extended period of time.
In the event the renter destroys your machine (sets it on fire, drives it over a cliff, etc.) you will need to have a second machine ready to go. Don't rent out a machine if it's all you have.
You will need to make sure you have the proper insurance coverage. Make sure both the machine and the operator are covered in the event of an accident. Nothing will ruin your side rental business faster than a lawsuit.
When you rent out a machine for money, you need to be sure it is in tip-top shape. Be sure everything is in working order, has the right fluid levels, and has had proper maintenance. Telling your renter, "be careful, the brakes are getting a little thin," isn't a good practice.
Before any machine leaves your property, do what car rental companies do by inspecting the machine with the renter. Go through all operations from cylinder movements to tracking. "It was working when it left the lot" isn't going to cut it if the renter comes back and tells you the hydraulics were weak right from the jump. Get the entire pre-rental assessment in writing with signatures.
Be specific on the rental agreement. Don't tell the renter "just have it back to me in a few days". A few days will mean a couple weeks to your renter. Be specific about what day and time you expect the equipment back on your property. If the machine is not back on time, be sure it is understood there will be a late fee.
A good way to ensure you will get the machine back on time and in good condition is to secure a deposit. There is no better incentive for a renter to be responsible than knowing they will lose money if they fail to hold up their end of the bargain.
Get all the money for the rental up front. This can't be stressed enough. You are not a credit company. Too many problems arise when people are given the impression they can pay at their leisure.
Setting expectations on cost and time will alleviate and even eliminate miscommunication. Have everything in writing and be sure all parties are aware of contractual expectations. This is especially true when it comes to friends and neighbors. Nothing will ruin a close relationship faster than when two people are in disagreement over what was or wasn't said in a business deal. A friend running off with his buddy's girl is a distant second.
Be aware of any state laws regulating the rental of private machines. Some states may be tougher than others when it comes to the practice. It's a good idea to hire an attorney to go over legal details associated with renting heavy equipment. They may gut you with attorney fees in the beginning but it could save you a ton of time, money, and heartache down the line.
If you are ready to start renting your equipment, a great way to get the word out is through online groups like EquipmentShare.com. The contractor to contractor online community facilitates the ability to rent, lend or buy equipment directly from other contractors. You can also check out forums and Facebook Groups like the one started by Conequip.
You can also get in touch with local rental companies. Build a relationship with them and let them know what you have to rent. They may be able to rent the machines for you, or send prospects they can't help your way.
Finally, you knew it was coming, and here it is. You can't escape it. Taxes. Keep records of all the money you make off renting your machines because you will have to report that income.
