Small equipment rental yard for tradespeople

Contractors, landscapers, builders, small businesses and some homeowners who would rather rent than buy.

Daily, weekly and monthly rental fees, plus delivery charges, damage or cleaning fees, and sales of consumables such as blades and fuel.

• Basic mechanical know-how and equipment upkeep
• Customer service and clear rental agreements
• Tracking assets, bookings and maintenance

• Zoning, local business license and lease terms for a commercial yard, so check with your city or county
• General liability insurance plus equipment (inland marine) coverage, and a check with your insurer on injury claims from rented gear
• Theft, damage and late returns, so use deposits, ID checks and inspections
• Sales tax on rentals, which varies by state, so check with your state tax agency
• High upfront cost of equipment and ongoing maintenance and repair costs

Startup costs are typically around $25,000 to $120,000, depending on the equipment you buy, your yard or unit and insurance. The upfront cost of equipment and ongoing maintenance and repairs are the main costs to plan for.

Monthly revenue is typically around $4,000 to $20,000, depending on your equipment range, how often it is hired out and whether you offer delivery. Theft, damage and late returns can cut into what you keep.

Check zoning, local business license and lease terms for a commercial yard with your city or county. Also check general liability and equipment (inland marine) insurance, how injury claims from rented gear are handled with your insurer, and how sales tax on rentals works in your state.