Local equipment rental and supply yard
Open a small yard or unit renting and selling construction tools and equipment to contractors and homeowners.
- $250k-750k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the US, not guarantees.
Official data
4,701 US businesses with employees in this field, -3.1% in a year
NAICS 423810 “Construction and mining (except oil well) machinery and equipment merchant wholesalers”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A small premises with a counter and fenced yard, renting equipment like compactors, mini excavators, generators, scaffolding and concrete tools, and selling consumables and some power tools.
Your first three steps
- Research local demand and competitors, and identify what equipment nearby rental stores are often out of
- Price a starter fleet and compare buying used, leasing, and dealer or franchise programs, then line up financing
- Find a zoned industrial or commercial site and check permits with your city or county before signing a lease
Who pays
General contractors, landscapers, trade businesses, and homeowners with larger projects.
How it makes money
Rental income by the day, week or month, plus sales of consumables and tools, delivery fees, and sometimes repair or servicing work.
Skills that help
- Knowledge of construction equipment
- Maintenance and safety checks
- Customer service and bookkeeping
- Managing staff as you grow
Watch out for
- Zoning, certificate of occupancy and any local business license, check with your city or county
- Insurance for rental equipment, general liability and property cover, and workers' compensation once you hire
- High upfront cost and equipment that sits idle, plan for cash flow gaps
- Customer injuries and damage claims, use clear rental agreements and safety instructions
- Delivery of heavy equipment may need trailers or commercial vehicle rules, check your state requirements
- Sales tax on rentals and sales, check your state's rules
Deep research report · US
Everything you need to start: local equipment rental and supply yard
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to open an equipment rental yard?
Estimates put startup costs typically around $250,000 to $750,000, depending on your premises and yard, and the size and type of your equipment fleet. It is a high upfront cost, and equipment can sit idle, so plan for cash flow gaps.
How much can an equipment rental yard earn?
Monthly revenue is typically around $6,000 to $30,000, depending on your fleet, how often it is rented and your mix of contractor and homeowner customers. The estimates assume at least 40 hours a week.
What rules should I check before opening a rental yard?
Check zoning, certificate of occupancy and local business license rules with your city or county. Also check insurance for rental equipment, workers' compensation once you hire, sales tax on rentals and sales, and any trailer or commercial vehicle rules for deliveries.
Other ways to run this business
Small tool rental from home
Rent out power tools and small equipment to local tradespeople and DIYers from a garage or storage unit.
- $3k-15k
- Side hustle
- From home
Job-site tool and supply delivery
Sell and deliver power tools, blades, fasteners and rentals straight to contractors on their job sites.
- $8k-40k
- Part-time
- Out and about
Similar retail ideas
Buy an existing convenience store
Take over a running corner store with its customers, stock and licenses, instead of starting from an empty unit.
- $150k-600k
- Full-time
- Own premises
Small manufactured home sales lot
Run a small lot or display center selling new and used manufactured homes, with delivery and setup arranged for buyers.
- $150k-600k
- Full-time
- Own premises
Neighborhood pawn shop
Lend cash against jewelry, tools and electronics, then resell items that aren't reclaimed.
- $150k-500k
- Full-time
- Own premises
Buy an existing liquor store
Take over a running liquor store with its customers, stock and location, instead of starting from scratch.
- $150k-500k
- Full-time
- Own premises
Neighborhood hardware store
Open a small local store selling tools, fasteners and DIY supplies to homeowners and tradespeople nearby.
- $75k-350k
- Full-time
- Own premises
Take over a local general store
Buy a small going general store, keep its customers and gradually make it your own.
- $80k-300k
- Full-time
- Own premises
Photo: neelam279 on Pixabay