As internet connectivity becomes more prevalent worldwide, businesses are becoming increasingly digitized. Online shopping is growing rapidly, with 23% of retail purchases expected to occur online by 2027. Rental businesses are also following the same trend in various sectors, such as car rentals. 78% of car rental bookings are expected to be conducted online by 2030.
Another advantage of rental businesses is that they offer higher profits than traditional retail, as they don’t require inventory replenishment. The greater focus on inventory maintenance over replenishment gives way to a number of unique rental business ideas that can be highly profitable. Monitoring your inventory and running your business effectively can also be relatively easy with the right rental management software.
Keep reading to discover lucrative rental business ideas to launch you towards profitability and success.
Advantages of running a rental business over traditional retail
As mentioned above, not having to replace inventory makes it an ideal niche for new entrepreneurs, as a small rental business idea can lead to high profit margins.
1. You can choose a niche
Providing quality rental services doesn’t require you to be an industry expert. This means you can choose what rental sector to go into based on other factors, such as what will require the least investment and will net you the highest profits. Other factors that you could consider include local market conditions. For example, if you have an idea to start a construction equipment rental business, chances for success are higher if you’re close to an expanding urban zone with lots of new construction projects or empty plots of land. Your business rental idea can also be based on your individual interests; for example, if you’re into superheroes and Comicon, you can start a costume rental business.
2. You can address consumer needs
Consumers are increasingly preferring to rent items over owning them, and as a consequence the rental industry is expanding and developing many new niches. Additionally, by starting a rental business instead of engaging in traditional retail, you can cater to more price-conscious customers.
3. Rental business are more sustainable
When consumers buy an item they are only likely to use it once or twice, and chances are that it will end up in a landfill, contributing to global pollution. Rental businesses keep such items in circulation, resulting in lower costs for the business owner, customer, and the environment.
33 best rental business ideas to start working on today
1. Bike or E-bike rental business
A rental business for traditional bikes has a low investment entry point as compared to other vehicular rentals. Get yourself a fleet of mid-range city bikes if you live in a tourist-heavy city or town and have a rental business ready to go. Pair that with rental software and you have every workflow automated for you.Â
One thing to remember is that bike rentals can be a seasonal business. Depending on where you live, this business will profit in the spring, summer, fall, and even mild winter.Â
A ripe-for-business segment in bike rentals is e-bike rentals. With e-bikes getting a lot of attention now, we may see a spike in city car owners and renters moving towards e-bike rentals for everyday commutes. Be a pioneer and take advantage of this opportunity.Â
Pros: You can start your business with relatively low investment.
Cons: You can incur heavy losses because of damage to inventory.
2. Car rental business
The rent-a-car business has been around for decades. With medium to high investment, you can get your fleet and start your car rental business. Your customer base will include tourists, visitors, travelers, and the like.
You can also rent out to people who need the vehicle only for a specific time, a place, or an event. You can populate your fleet with niche vehicles such as towing vans, specialized trucks, ambulances, and other special-use vehicles. If you’re a vintage car collector, you can earn money on the side by renting out your cars for shows, movies, and shoots. If you are already one of these car rental businesses that hasn’t digitally transformed yet, you can power up your operations with rental business software.
Keep in mind that this rental business will require regular maintenance and upkeep costs for the vehicles.
Pros: The business model is highly scalable. You can start the business with just two or three cars, adding to your inventory as you attract more revenue.
Cons: There is usually a lot of competition in this sector, especially from ride-sharing companies.
3. RV rental business
Starting a recreational vehicle (RV) rental business can have a steep startup investment. The investment may be lower if you have the capital to buy a running RV business. RVs come in all shapes and sizes; the largest ones are called motorhomes, and the smallest ones are called campervans.
The motorhomes are for experienced drivers who know how to maneuver a large vehicle on the highways. These come with comfort and convenience like a fully-equipped kitchen, bathrooms, WIFI, and other amenities. The campervans are smaller than conventional RVs and are easy to drive and park for average city drivers. These come with basic amenities.
In addition to offering your RVs, campervans, motorhomes, etc., you can provide additional amenities. Bundle up your RV rentals with snacks, WIFI, camping gear, stoves, etc. for an additional cost. Not only will you be enhancing the experience for your customers, but also increasing your revenue.
If you are reluctant to buy RVs at the get-go, you can partner with RV owners and put up their RVs on your rental business website. Earn through commission, and once you raise enough capital, buy your own RVs to add to the fleet. Tap into the projected $1-billion RV industry now before it becomes saturated in the following years.
Pros: RV tourism is currently going through a boom in popularity. It also appeals to a wide range of demographics.
Cons: RV’s are costly, meaning starting this business will require high investment. They also require regular maintenance. Your inventory may also be damaged by reckless customers.
4. Trailer rental business
The trailer rental business is diverse enough to have customers that can be friendly neighbors to small business owners, and from corporations to industries. The use of trailers is extensive as these may be used for cargo, logistics, transporting light to heavy equipment, hauling vehicles, moving horses or cattle, etc.
If an initial investment in buying trailers is too steep, you can partner with truck and trailer owners to put their vehicles on your rental software. Earn through commission and buy your trailer fleet once you have raised enough capital.
If an initial investment in buying trailers is too steep, you can partner with truck and trailer owners to put their vehicles on your rental software. Earn through commission and buy your trailer fleet once you have raised enough capital.
Once you have your trailers ready for rental, you can advertise your rental business in the right market to get started. Build lasting relationships with courier services, logistics companies, equipment manufacturers, construction companies, event companies, etc. as these will ensure regular business for you.
Find a niche that works best for your business, and expand within that niche to offer great service and experience to your customers. Keep your vehicles insured, cleaned, maintained, and serviced so your customers always get the best trailer rentals.
Pros: Trailers are needed in a wide range of businesses, creating a wide customer base. RV’s also have minimal maintenance costs compared to complex machinery or vehicles.
Cons: Trailers depreciate over time, especially if they are used frequently. This leads to increasing costs as you assess and replace older trailers.
5. Truck rental business
Trucks and their role in transporting goods form the backbone of the modern economy. This makes starting a truck rental business a highly lucrative venture, especially in areas with high demand for moving services, construction projects, or business logistics.
Pros: There is a consistent demand for trucks which is usually unaffected by downturns in the economy, giving you a consistent revenue stream.
Cons: Trucks require regular maintenance and upkeep, driving up your overhead costs.
6. Food truck rental business
The food service and event industry is a growing market. This business model lets entrepreneurs rent out fully equipped food trucks to chefs or caterers who want to serve food without the upfront cost of purchasing a truck. Your rental inventory can include everything from basic trucks to fully customized setups. This business model is also scalable, flexible, and has the potential for high profit margins.
Pros: This business model is highly scalable, allowing you to add more food trucks to your fleet as your business grows
Cons: Your food trucks will be subject to several regulations depending on where your business is located. This includes zoning restrictions, parking regulations, or additional permits needed to rent out trucks for public events.
7. Boat rental business
A boat rental business can be very profitable if you’re situated in a coastal city or near a major lake or river. This is a growing sector within the recreational and tourism market. The vessels you rent out can include anything from small kayaks to luxury yachts. Apart from rentals, the services offered by your business can also include guided tours, equipment rentals (e.g., fishing gear, paddleboards), or event hosting.
Pros: Boat rental businesses are highly scalable. As your business grows, you can add more vessels to your fleet, eventually even expanding to multiple locations.
Cons: The boar rental industry comes with inherent risks related to accidents, injuries, and damage to boats. This can also result in litigation-related costs for your business.
8. Dumpster rental business
A rental business idea that is profitable but sometimes the least desired is a dumpster rental business. Dealing with trash has an ‘ick’ factor that some business owners may find undesirable. However, if you want to start a medium investment rental business that has good profit margins, getting a few dumpsters is the way to go!
Your customers will include construction companies, renovators, homeowners, plazas, etc. who want to get rid of their waste and trash. Offer them a dumpster rental in capacities that work best for them.
You can get additional revenue streams by recycling and disposing of the contents of the dumpsters. Sell scrap metal, second-hand furniture, salvaged doors and windows, etc. You can further add professional cleaning, organizing, storage, delivery, and moving services to your business to increase your dumpster rental business revenue.
Please research thoroughly into your local jurisdiction before investing in a dumpster rental business. There may be rules and laws you may have to abide by for the trash or waste you get from customers, and how and where to dispose of it.
Some lucrative niches you can tap into within the dumpster rental business are construction, commercial, residential, roll-off, temporary dumpster, event waste management, junk removal, and hazardous waste management.
Pros: Dumpster rental businesses are very cost-effective.
Cons: You will have to watch out for your business being used for illegal dumping.
9. Portable restroom rental business
The ‘porta-potties’ or portable restroom rental business is among the most profitable rental business ideas. Invest in these and offer them for rentals to popular festivals, events, concerts, emergency camps, construction sites, and temporary job sites.
Your regular customers will come from the construction and temporary renovation sites where these portable restrooms are used every single day. The industry standard for the number of portable restrooms required for a construction site is one portable restroom per person working 40 hours every week. Due to this standard, you may have a good number of rentals being rented for medium to long terms.
The portable restroom costs low due to its molded plastic construction. But, you may have to dip deeper into your wallet to buy the specialized vacuum truck equipment required to get rid of the waste produced. Research waste removal practices and relevant equipment required to keep your portable restroom rentals free.
Pros: Portable restrooms are needed for a variety of businesses and events. These include construction sites, outdoor events and festivals, disaster relief and refugee camps, parks, music concerts, and any kind of large public gathering.
Cons: The demand for portable restrooms can be subject to seasonal demand, as there are fewer outdoor events in winter. Furthermore, there will also be labor costs related to cleaning and sanitizing the restrooms.
10. Computer and mobile rental business
With next-gen devices released every quarter, it is becoming a challenge for corporations, schools, and tech businesses to upgrade their IT assets immediately. Most of them rely on computer and mobile rental businesses to help them cater to this demand.
With a medium investment in these devices and gadgets, you can start your computer and mobile rental business. You can meet the seasonal demand of schools and colleges who want their IT assets upgraded only for a term or a few years. You can also help tech businesses who need quick access to high-tech devices only for a specific project or a client.
On a smaller scale, you can rent out gadgets, laptops, devices, etc., to students and project-based hires visiting your area. This is a lucrative rental business idea and works perfectly well if you are already a tech geek.
Pros: This business model provides a steady cash flow through recurring revenue streams, especially if you provide long-term rentals or subscription models.
Cons: The technology rental market is rapidly growing, meaning you will face serious competition, especially from online rental stores.
11. Camera and lens rental business
This is an easy rental business idea for shutterbugs who want a side gig. Since certain specific cameras and specialized lenses are only used occasionally, they are more likely to be rented out rather than bought for single or multiple uses. So, you will be tapping into a ready market. Your customers will include wedding photographers, short filmmakers, media students, and small studios.
All of them rent out cameras and lenses frequently. As a photography enthusiast, you may invest in expensive lenses, camera equipment, high-end gear, and drones. Additionally, you can offer bulk discounts, loyalty points, coupons for long-term rentals, and more.
Pros: Cameras and lenses generally have a long lifespan if they get proper maintenance and care, reducing the need for constant reinvestment into new rental equipment.
Cons: Economic downturns can lead to reduced demand for high-end photography gear.
12. Audio/video equipment rental business
You can invest in an audio/video equipment rental business with low to medium investment. This rental segment is quite profitable and already a well-established industry.
You can offer your customers a diverse range of A/V equipment like recording equipment, karaoke, microphones, projectors, monitors, screens, production equipment, speakers, and more. Initially, you can target a specific niche like only renting A/V equipment to events, festivals, weddings, parties, corporate events, and local concerts.
As you understand the A/V equipment rental industry better, you can scale your business to provide rentals to production houses, film and TV companies, international festivals, and globally renowned music events.
Pros: You will be providing customers with a highly cost-effective alternative to buying expensive technology that they may only need for a specific event, meaning it wouldn’t be cost-effective for them to buy it outright.
Cons: Your inventory may suffer breakdowns and require expensive maintenance and repairs.
13. Baby equipment rental business
For young families with kids, traveling to another city or state is always a hassle. They have to pack the baby stroller, baby car seat, or even baby carriers.
These take up valuable space in your car, or worse, it may deduct considerable allowed weight from your plane ticket. You can start a profitable baby equipment rental business by renting mobility equipment to visitors and tourists. It has low to medium investment with a good profit margin. You can scale your rental business over time. The ideal places where you can rent out baby equipment are huge malls, theme parks, hotels, zoos, and recreational centers. These will be brimming with tired parents, moody toddlers, and babies that want to sleep.
Pros: Baby equipment rental has minimum maintenance requirements
Cons: Certain baby equipment like car seats and cribs come with strict safety standards that need to be adhered to.
14. Durable medical equipment rental business
The durable medical equipment (DME) rental business is highly lucrative and rewarding. Your rentals will include crutches, canes, walkers, wheelchairs, scooters, commode chairs, blood sugar meters, hospital beds, stretchers, patient lifts, medical machines, and medical accessories.
If you start this DME rental business, you will be able to help hospitals, clinics, home-bound patients, medical camps, and short-term medical training programs. The hospitals will rent from you when they hit an emergency crisis. The smaller clinics with budget constraints will rent from you temporarily to fill a need. The home-bound patients will rent based on their requirements as well. So, you can offer your DME rentals on short-term, medium-term, and long-term leases to keep your business profitable.
To keep your DME rental business successful, you will have to maintain your medical rental equipment with the highest standards of inspection, sanitation, and industry regulations. A record of regular inspection and sanitation before and after every rental use will help build trust and safety for your customers.
Pros: Medical equipment is in constant demand, meaning running a medical equipment rental business will provide you with a steady source of income. Additionally, demand for medical equipment will only grow as the North American demographics shift towards an older population.
Cons: Medical equipment is expensive and requires regular maintenance. Additionally, your business will also be subject to various health and safety regulations.
15. Wedding and wedding suits rental business
Weddings have to be perfect in all aspects, from the venue to the food, and from the couple to the guests. To ensure this, every couple wants the best in business for their wedding. Try your hand at a wedding rental business as it is an investment that you can start locally and quickly. Your family, extended family, neighbors, friends, and coworkers can become your early customers.
To start, go through an extensive wedding plan to inspect the most common things that are rented out in a wedding. You can invest in a specific niche within this rental industry.
For example, pair up with a wedding catering company and offer to rent out cutlery, catering equipment, and related furniture. You can also focus your wedding rental business on offering decorations, furniture, tents, chairs, tables, etc.
If you have an eye for fashion and can get bespoke suits and dresses made in time, you can invest in renting tuxedos, suits, dresses, etc. In this fabric-focused niche, you can expand your rental assets to include stage curtains, photo booths, drapery, cushioning, napkins, theme weddings, etc.
Pros: Wedding dress rental businesses are highly compatible with online marketing, making it easy for you to reach new clients with a well-designed webstore and social media marketing.
Cons: Wedding fashion changes rapidly on a year-to-year basis, meaning your business will require constant reinvestment in new inventory to stay competitive.
16. Clothing rental business
Renting clothes instead of buying them outright has become popular among eco-conscious consumers, especially Millennials and Gen Z. Many people are turning to rentals as a way to enjoy trendy, high-quality clothing without the environmental impact of fast fashion.
Pros: Clothing rental businesses can operate primarily online, which reduces the need for physical retail space and the associated costs
Cons: Managing logistics for renting out clothing requires a reliable system to handle deliveries, returns, and exchanges, ensuring items are delivered on time and in good condition.
17. Moving and storage gear rental business
Moving gear includes items like bins and furniture pads. These items are usually only required for short periods, meaning people are likely to prefer to rent them out over buying them outright. Offering these items in conjunction with other equipment needed for moving, such as moving trucks or storage, can quickly attract clients to your business.
Pros: This is a relatively easy-to-start business
Cons: Your business can be subject to damage claims if any of your customers’ belongings are damaged during the moving process.
18. Costume and props rental business
Investing in the costume and props rental industry is a good idea as it requires relatively low initial expenditure. Your costume rental business can focus on character costumes for Halloween, dresses for formal events, party wear, wedding dresses and suits, and festival-specific costumes.
Your customers will be individuals, and you can also rent to schools, theaters, production houses, movie companies, and festivals. It is a huge market as most people want to rent their costumes, suits, and dresses instead of buying one for just a day or two. Tap into this market by finding a crowd that shares the same passion as you.
Pros: Running a costume and prop rental business will eventually get you loyal customers leading to repeat business year after year. It can also be started with low investment costs.
Cons: Costume and props come with large storage needs, which can drive up your overhead costs.
19. Furniture rental business
For a furniture rental business, you may buy the required assets to cater to homeowners, corporate offices, dorms, media companies, and hotels. You can become an all-in-one furniture rental solution or pick a specific niche. Once you start your furniture rental business, you can provide outdoor furniture for festivals or office furniture for corporate buildings for longer durations.
You can also rent luxury furniture for events or you may cater specifically for an entertainment stage or a movie set. Since stylish, unique, or period-specific furniture is expensive, your customers will be willing to rent out furniture for cheaper rather than buying it themselves.
Pros: A furniture rental business can target a variety of markets. This includes students, corporate clients, real estate professionals, event planners and families on temporary postings.
Cons: Furniture is bulky and heavy, meaning delivering and setting up rental orders can be quite expensive.
20. Decor and signage rental business
Starting a decor and signage rental business is straightforward. It is a business you can start easily with low to medium investment. Your customers will be businesses, individuals, corporations, and anyone at all.
You can invest in getting decorations for specific seasons or occasions like Christmas, Thanksgiving, Independence Day, Valentine’s Day, etc. Your customers will rent the decorations for their events and parties. Additionally, you can offer lighting equipment and rent off a generator in case the event is off-grid.
You can select lawn signs as your niche and offer the rentals to realtors, property owners, homeowners, etc. Another niche within the decor and signage rental industry is temporary road and traffic signs, cones, detour signs, etc. You can partner with local highway authorities to offer your rentals to them.
Pros: Decor and signage items are generally durable and last a long time. This reduces the need to reinvest in new inventory.
Cons: Customers often want customized signs and decor, which can be a strain on time and resources.
21. Party rental business
Weddings, birthdays, graduation, formal dinners, anniversaries, holiday season, and similar events only happen once or a few times a year. For an average family, it doesn’t make sense to invest so much money into getting the right furniture, decorations, and equipment to host these. This is the opportunity where you can cash in and start your party rental business.
Equipped with the right items for every occasion, your party rental business can cater to these events all year round. Event management is an old business model, and it may be a saturated segment in your area as well. However, if you find the right audience in a niche, you may start getting referrals quickly. This is a low-investment rental business as well, especially if you only rent out for specific events or to a certain audience.
Pros: If you’re fond of event planning this can be a fun side-gig that can be started with relatively low investment. Plus, your business will be based on solving people’s immediate needs.
Cons: Finding the right supplier for your rental inventory can be difficult. It often takes a lot of trial and error before you find the right fit for your business.
22. Office space rental business
If you’re involved in the real estate sector, renting out office spaces is one of the most profitable and steady property rental business ideas. Going into the office space rental business could involve either renting out entire office spaces or individual desks in a co-working space. Once you start your business, it is essential to ensure that all office residents sign a lease agreement, which outlines the terms of rent.
Pros: Renting office spaces is highly lucrative and provides a steady income.
Cons: Your business won’t be viable if you aren’t able to attract enough tenants quickly enough.
23. House rental business
The real estate rental sector is a well-established industry that has been around for a long time. While this requires a large investment, you have the option of investing in single-family homes or larger apartment complexes. This is a high-income sector with low labor demand. Whether you manage the property yourself or choose to hire a local property manager is up to you.
Pros: Real estate assets appreciate over time, meaning investment into rental houses can make you a lot of money even if you don’t find tenants immediately.
Cons: Real estate assets are expensive, meaning starting this business comes with high investment costs.
24. Storage rental business
The need for storage space is a major driving force in the business world. This means demand for storage is high and relatively stable, making this a profitable rental business idea. Your first step to starting this business would be obtaining a storage space. This will need to be an area that is accessible, properly zoned, and has a good amount of traffic. To protect your business from litigation-related costs, you should protect it against theft, fires, natural disasters, and pests. You should know this business comes with a high likelihood of tenant issues and problems.
Pros: Storage rental businesses usually come with a predictable and steady stream of income. They are also easy to scale by adding more units to an existing facility.
Cons: Starting a storage rental business requires significant upfront capital investment.
25. Vacation rental business
Starting a vacation rental business can be a profitable way to capitalize on the growing demand for short-term accommodations, especially in tourist destinations, urban centers, or scenic locales. The business typically involves purchasing or leasing properties and then renting them out to vacationers, tourists, or business travelers on platforms like Airbnb, or through your own website. Successful vacation rental businesses offer well-maintained, fully furnished properties, often with personalized touches that make the stay more enjoyable for guests.
Pros: Vacation rental businesses can generate substantial revenue during peak tourist seasons
Cons: This is a form of real estate rental that requires high investment in order to get your business started.
26. Camping and adventure gear rental business
If you live near a National Park or popular camping grounds, you can invest in opening a camping gear rental business. Not all campers want to buy expensive gear for this activity which may only happen a few times a year.
Find your target audience which will be camp-going families, students, groups of friends, etc. Create a rapport with them by offering the best quality camping gear rental equipment. Give them a great rental experience using powerful rental software, and you will likely convert them into loyal customers who visit you every season.
A few offshoots of this same adventure equipment rental industry are rentals for fishing, hunting, hiking, etc. Depending on the influx of visitors and the time of the year, you may be able to start a highly profitable rental business.
Pros: This kind of rental business comes with low overhead costs as it doesn’t require heavy equipment, heavy equipment, a large office space, or complex systems.
Cons: This business comes with a high risk of legal issues as camping and adventure activities have a high chance of accidents and injuries related to your rental gear.
27. Canoe and kayak rental business
If you live close to a popular water body like a lake or a river, you can invest your money in a canoe and kayak rental business. It can be started with a low to medium investment as you will only be getting canoes, kayaks, paddles, lifejackets, etc.
The canoes and kayaks are durable so you won’t have too expensive or frequent equipment maintenance. Pair up your rental business with guided tours and courses, and you have a great rental business model.
If starting with your physical storage space seems challenging, you can partner with hotels and accommodations on the waterfront. They will get you storage space and customers, and in return, you will add experiential value for their visitors with your canoe and kayak rental business.
Pros: If you are already a rafting enthusiast you can start your business by renting out equipment you already own.
Cons: Your business can incur litigation-related losses if there are any accidents that result in your clients getting injured.
28. Ski and snowboard rental business
Consider starting a ski and snowboard rental business if you live in an area with heavy winter weather. Bike rentals are to summer what ski and snowboard rentals are to winter. It has a low investment entry point and you can research the types of ski and snowboard popular with amateurs and professionals.
Build your rental business around their needs. Keep in mind that this business will be seasonal. You can rent to popular skiing and winter resorts or locate your business at the base of the ski hill or the last town before the resort. Additionally, you can also offer winter boots, goggles, helmets, ski suits, socks, etc., to cover all bases in this niche.
Pros: If you love winter sports, running a ski and snowboarding business is a great way to combine your passion with your profession.
Cons: This is a seasonal business, it is unlikely that you will be getting any clients in the summer months unless you live in an area that gets snow all year round.
29. HVAC rental business
All kinds of businesses need heating or air conditioning for their employees, depending on their location. This makes starting an HVAC rental business a highly profitable investment. Apart from renting out heaters, air conditioners and ventilation units your business can also offer installation and maintenance as additional services.
Pros: Customers renting HVAC units are often willing to pay premium prices for short-term, on-demand access to high-quality systems, meaning you will get a high profit margin on your rental orders.
Cons: Running an HVAC rental business comes with high costs related to storage, maintenance, transportation, and insurance.
30. Heavy equipment rental business
The heavy equipment rental industry is growing rapidly. By investing in this market you can tap into the construction, mining, infrastructure and agriculture industries. If you have access to enough capital to get your heavy equipment rental business started there is a high likelihood of success as heavy equipment is too expensive for many businesses to buy outright.
Pros: Heavy equipment, such as excavators, bulldozers, cranes, and forklifts, is essential for a wide range of industries, including construction, mining, oil and gas, and agriculture. This means there will be a steady demand for your rental inventory.
Cons: Heavy equipment requires regular maintenance and repairs, which can drive up overhead costs.
31. Crane rental business
Crane rental businesses can be highly profitable in areas with high levels of construction activity. Cranes are also needed for different types of industrial activity. The business will involve purchasing and maintaining a fleet of cranes, all of which may specialize in different tasks. This type of business generates revenue by leasing equipment on a daily, weekly, or long-term basis, with additional income opportunities through operator services, transportation, and maintenance offerings.
Pros: Cranes are an expensive subcategory of heavy equipment that can be rented out at high prices, leading to substantial profits.
Cons: Running a crane rental business comes with high maintenance costs as cranes are complex machinery with intricate parts.
32. Small equipment rental business
Small equipment rental businesses are a subcategory of equipment rental businesses that specialize in items such as lawnmowers, power tools, and small excavators. This is a great way to tap into the growing demand for tools and machinery rentals without substantial investment. Your biggest customers are likely to be DIY enthusiasts, contractors, and homeowners. A well-run small equipment rental business can provide steady income with the potential for growth as demand increases.
Pros: You can start this business with minimal investment by renting out tools and small equipment you may already own.
Cons: This business model usually offers small profit margins.
33. Power tools and equipment rental business
You can start a power tools and equipment rental business with an initial investment that can be low to medium based on which segment of this market you want to target.
In the lowest investment segment, you can fill your business inventory with regular power tools like drill machines, saw cutters, chainsaws, etc. You can even buy tools in a niche such as power tools for gardening, equipment for pressure washing, tools for metalwork, etc., and start your business by renting to that niche.
For the medium investment segment, with a high-profit margin, you can invest in forklifts, lawnmowers, and light construction vehicles. This construction equipment rental business idea can yield you great profit.
Pros: You can cater to a wide range of customers including home owners, DIY enthusiasts, contractors and plumbing or electrical maintenance businesses.
Cons: Your business can be prone to losses incurred from theft and damage to equipment.
Which rental business idea is best for me?
Which rental business idea you choose to pursue is up to you and your specific conditions. While all the ideas mentioned in this guide are very profitable, some of them have higher investment costs. Others require specific expertise or have high maintenance requirements. As such, you should assess your own investment capacity, as well as what sort of business you would enjoy most. You should also consider whether you’re looking to run the business full-time or want it as a side gig. The ideas mentioned in this blog are all very profitable. With the right rental management software backing you up, you should be able to run any of them successfully(provided you have enough to invest).
