Top Rental Business Ideas to Invest In
Rental businesses are a lucrative source of income as many people seek convenience and value for money for their short-term needs.
With more and more consumers using rental services to conveniently go about specific tasks or make great memories without actually purchasing expensive equipment, it’s become common to find a rental alternative for nearly every retail item under the sky.
If you’re considering to rent out your equipment for the money, here are some of the most profitable rental business ideas to explore:
1. Rent-a-Car Business
Do you own several cars that are seldom used? Make money out of these depreciating assets by launching a car rental business, an industry that has grown considerably in the last decade.
There are a lot of people who rent out cars for short-time use, like delivering an important cargo, going out on road trips, and attending formal gatherings that require the attendance of the whole family, such as weddings, birthdays, and graduation ceremonies.
If you own an all-terrain vehicle and live near an off-road park or designated backcountry recreational locations where ATVs are allowed, you might find ATV rental a lucrative venture. Check with the state or any federal agency that manages the area for the required permits or licenses to operate.
Buying several rental vehicles at once can be heavy on your pocket. The most practical way to get enough funds for the purchase is to get a chattel mortgage, which provides competitive interest rates and tax benefits.
If you have enough money or tech prowess, develop an app that allows your car rental customers to conveniently request a vehicle or book it in advance and support credit card and cash payments. In this digital age, people are always on their computers and mobile phones so it’s likely that your car rental business will become the go-to option for many customers, especially the millennials and Gen Zs.
2. Bikes, e-Bikes, and Electric Scooters
A bike rental business is booming nowadays as the world observes social distancing and keeping at least two metres away from each other. It is also the go-to mode of transportation for the growing number of consumers who are conscious about the environment, as well as of their health and budget.
If you live in an area with extensive bike trails, renting out bikes can be a profitable venture. Meanwhile, if you live in a perpetually busy and highly-trafficked area, you may attract a lot of bustling consumers who need something like a moped, Segway, or electric scooter to avoid traffic and get to their destinations fast.
Make your bike or electric scooter rental business attractive to consumers by offering add-ons like tag-along or trailers for children and discount deals like price cuts on fat bike rental during the winter season. You can also offer rental packages that include refreshments or round-trip shuttle pickup and drop-off.
3. Tools and Equipment
If you’re a tradie who has collected a lot of tools and equipment over the years or someone who’s involved in the trade industry and wants to venture into business, you can start renting out simple tools like trowels and spades and small equipment like forklifts and lawnmowers to fellow tradies and DIY enthusiasts.
As your business grows and you have the funds to purchase larger and more expensive equipment and machinery like cranes, backhoes, and bulldozers, you can cater to bigger clients, like private companies and government sectors. Builders and contractors usually are typically the biggest clients of tool and equipment rental companies.
You may need a large sum of money to purchase heavy machinery for rental purposes, but if your business succeeds, you’re likely to gain high-profit margins. To rise above your competition, invest in developing equipment rental apps that make it convenient for your customers to check out tools and equipment, make reservations, and pay online.
4. Computer and Mobile Gadgets
Do you have a passion for tech stuff? Are you always on the lookout for the latest gadgets and gizmos? Turn your passion into a money-making venture by renting out computers and mobile devices.
From desktop computers and smartphones to headphones and gaming consoles, there are a lot of electronic gadgets that people need to complete a certain project but cannot afford to buy. By renting out this equipment for a fraction of the cost of buying, they can enjoy the latest technology in the market without having to empty their pockets.
And we’re not just talking about individual clients but also about various organisations from the private and public sector who are always in constant need of technological support for their training, seminars and various other business functions.
5. Party Supplies
Party celebrations are everywhere. The need for party supplies is also never-ending and, thus, offers a lucrative opportunity especially if you’re passionate about events and party planning.
Unlike other rental businesses that specialize in certain types of equipment, this particular rental market offers plenty of flexibility and opportunity. Considering that most households do not really use these party supplies regularly and, therefore, do not keep them in their homes, you can be sure that there’s always someone who wants to rent out your equipment to celebrate a special occasion.
The items that you can rent out are limitless—from the classic chocolate fountains, bouncy castles, bubble machines, and trampolines for children’s birthdays to the concession machines, karaoke machine and audio and visual equipment for adult parties. And, of course, the necessities: tables, chairs, tents, linens, and dishes.
If you want to rise above the competition, you can also rent out less popular yet more expensive equipment like patio heaters, roll away beds, decorative lamps, dunk tanks, and inflatable jumpers, and margarita machines.
A growing number of people are renting out furniture instead of buying them. The unsteady economy has forced many to move houses frequently and in such a lifestyle, buying expensive furniture is not practical. To experience comfort while staying in their temporary homes, many rent out sofa sets and other household furniture and return them when it’s time to move or when they’re simply tired of them.
Apart from frequent moving houses, there are also those who rent out furniture for special occasions, like weddings and funerals.
Lastly, there are businesses that rent out office furniture like desks and chairs for short-term hires, as well as modern sofas and loveseats for company events.
7. Costumes, Attires, and Accessories
Another popular rental business involves fashion, that is, renting out different types of costume for various events and occasions. These include wedding attires and formal dresses, party wear, character costumes, and many other theme-specific, out-of-the-ordinary outfits.
Plenty of people rent out costumes for special occasions instead of buying them, especially if they only need to wear the outfit or costume only once, such as in theme-specific gatherings like Halloween parties, prom and graduation ball, and beauty pageants. Schools, theatre groups, and production houses also rent out costumes for the various presentations and performances of their talents.
If you love dressing up, collecting different styles of clothing, and sharing your fashion ideas and finds with other people (while making money out of it), this rental business is for you! Unlike other rental businesses, you won’t need a significant amount of money to get started. You can start with your closetful of clothes right in the comfort of your own home. Expanding to other fashion and beauty products is also easy, especially if you’ve successfully grown a clientele.
If you live close to theme parks and shopping centres, renting out strollers can be a profitable business. Plenty of park and mall-goers with toddlers do not bring along strollers on their family day out because of the hassle of transporting the carriage from home. After an hour or two of exploring the park or mall, the kids get tired of walking. That’s when your business comes in.
Aside from toddlers, strollers can also accommodate furbabies and double up as shopping carts. Make sure to include these additional purposes in your marketing campaigns so you’ll attract more customers, including those who do not have little kids.
9. GoPros, Drones, and Accessories
If you’re a thrill-seeking adventurer who loves to document and share your experiences on social media, you can make money out of your passion by renting out your adventure paraphernalia--drones, GoPro, floating hand grip, harnesses, mounts, floating hand grips, and other action camera accessories.
These gadgets can get expensive, especially the best ones in the games, which may hinder many from purchasing them. As an alternative, many resorts to renting out these gadgets for a fraction of their purchasing costs.
From time to time, private and public organisations also rent out GoPros, drones, and doodads for special occasions, like team building activities, seminars, Christmas parties, and various other company events. If you’re lucky to have made business with them, they’ll likely seek you out for the same rental needs in the future.
10. Photo Booths
If you’re into the event planning and organising business, renting out photo booths is a great side gig.
Photo booths have become a staple in weddings and birthday celebrations in recent years. And what’s to not like in them? Aside from providing guests with a fun activity, they also make memories last a lifetime.
With the entertainment that photo booths provide at social gatherings, they are unlikely to fade out of the picture anytime soon.
Whatever rental business you have in mind, starting the right way is the next big step. Create a business plan before jumping into the business to sort out all the details of your venture. It also helps you get approved for a business loan or attract investors if you need so.
You can also reach out to someone who runs a rental business for tips and advice on getting started and efficiently managing the business.
While starting a rental company can be exciting, the competition can be tough. Focus on boosting your business efficiency with strategic planning and offering the best value to their customers.