October 2022 - Quipli

Equipment Rental Liability Waivers: What to Include (With Free PDF Template)

Published on October 28, 2022

As a rental business owner, you want to get your equipment back in one piece every time. Equipment rental customers expect to rent machinery that is in good, safe working condition.

Unfortunately, the parties involved can’t just rely on the honor system when it comes to such expensive machines. A clear, comprehensive equipment rental liability waiver protects you and your customers by outlining the responsibilities and obligations of both parties.

need an airtight liability waiver? click to download our free template

* This is a sample liability waiver form. Please consult with a lawyer before use.

Liability and Equipment Rental Businesses: How to Protect Yourself Legally

A liability waiver for rental equipment details how equipment should be used, who is allowed to use the equipment, and in what ways you, the rental business owner, will be responsible in case of an injury during the use of the equipment.

Accidents can happen even with proper use by the client and proper maintenance by you. If you don’t provide a well-written waiver with your rentals, you may be liable for any damages caused.

Note that even the most comprehensive waiver does not take the place of insurance. You may still face a lawsuit despite having a liability agreement. Make sure that you have plenty of general liability insurance to fill in the gaps not covered by your agreements.

Your waiver needs to be legally enforceable, but it will still only reduce your chances of getting sued or facing insurance claims.

What Is a Liability Waiver?

A liability waiver is a legally binding document that outlines all of the stipulations for allowing one person to rent a piece of equipment from another. More specifically, the waiver outlines:

The parties involved in the rental (the lessor and the lessee)
The appropriate use of the equipment
The timeline of the rental
The rates of the rental
How to return the equipment

When the customer signs the waiver, it shows that they are fully aware of the risks of using the equipment and can’t hold you or your company responsible should they misuse it.

As for terms that may be included in your waiver, you may have noticed “lessor and lessee” listed above. These terms refer to the two main parties:

Lessor: Refers to you, the owner
Lessee: Refers to the customer renting the equipment

You don’t have to use these terms specifically and can instead use “owner” and “renter” if you prefer. The more clarity and details you give your waiver, the less likely you’ll experience legal difficulty in the future.

Brush up on equipment rental agreement terms and conditions with our guide.

What to Include in an Equipment Rental Liability Waiver

While there are some universal inclusions your waiver should have, there will be subtle differences depending on which state you operate from. You will need to consult with a lawyer or thoroughly examine state law to ensure you are in compliance.

Inherent Risks

This part of the waiver does not cover the condition or state of repair your equipment exists in; instead, it covers proper use of the equipment and the risks it poses regardless of condition. Every machine comes with some risk by its very nature, and the possible risks must be outlined here.

Assumption of Risk

Your customers will not be able to claim ignorance of the risks posed by using your equipment. The assumption of risk shows that they understood the dangers and cannot claim otherwise.

Release Clause

Once your customer takes possession of your equipment, you are released from any liability for its use and won’t carry the legal burden should the customer misuse it.

Indemnification Clause

This means that your customer would have to compensate you for legal fees incurred should they sue you and lose.

Insurance Information

This gives the customer all of the situations covered by your equipment rental insurance, outlining what is covered and what isn’t covered.

Choice-of-Law Information

This part of your rental equipment liability waiver allows those involved to decide which state’s laws will govern and interpret the waiver. The parties may choose a state other than where the business and customer are located and even a different state than the one in which the agreement was signed.

Insurance for Rental Equipment: Making Sure Your Business is Fully Protected

Unfortunately, “insurance” isn’t a catch-all term that allows you to get a single policy to cover every possible situation. Instead, you’ll need different types of insurance to cover specific incidents. It’s important to remember that even with specified insurance, it is still possible to face a lawsuit or insurance claim; it’s just far less likely to happen.

General Liability Coverage

This type of coverage protects you in most circumstances that involve customers using your equipment. It covers general claims regarding injuries and property damage. The payout is determined between the insurance company and the client.

Inland Marine Insurance

While this might sound like it’s for equipment used in and around the water, it’s instead meant to cover the transport of equipment over land. It covers property damage (both to your equipment and from your equipment), theft during transport, and temporary third-party storage.

For coverage regarding transport over water, a company would need to purchase “marine insurance.”

Property Insurance

Property insurance covers the equipment and tools in case of damage or theft. This insurance is important not just for the equipment you rent out but for your company’s computers and other necessary electronics, inventory, and tools not intended for customer use.

Workers’ Compensation Insurance

This insurance takes care of workers who are injured during work. It allows them to continue having expenses handled and salary paid.

Reduce Your Rental Business’s Risk with Quipli

Managing rentals, inventory, and equipment reservations requires keeping track of many moving parts. To ensure your equipment, tools, and even your customers don’t get lost in the shuffle, turn to Quipli for your equipment rental software.

Check out what Quipli can do for you and transform your rental business today.

Learn About Quipli’s rental Software

The 5 Best Places to Buy An Excavator

By Kyle Clements

Published on October 25, 2022

An excavator is one of the most versatile and reliable pieces of heavy equipment. Available in a range of sizes and with a variety of features, excavators can play a role in construction, excavation, and landscaping.

If you run a construction company or an equipment rental business, you’ll want access to the best-performing excavators on the market. Here are some tips on how to select the right excavator for your needs.

Where to Buy an Excavator: 7 Places to Look

You can buy excavators from a heavy equipment dealer. Some equipment rental companies will sell their used excavators, but to buy a new machine you’ll have to shop at a heavy equipment dealership.

The websites of major brands will often allow you to search for licensed dealers in your area. This can be ideal if you’re looking for an excavator from a particular manufacturer.

Here are some of the best ways to buy excavators for your rental business.

Ask around in your network

If you know other people in the construction industry, your network can be your best resource for making decisions about what equipment to buy. Ask around about recommended models, local dealers, and what other people recommend.

Use Google to search online

Google searches can be a great way to get a feel for the market landscape. You’re likely to come up with a variety of brands, dealers, and auction services.

It’s also a good idea to look for real, firsthand customer reviews of excavators you’re considering.

Check out Construction Equipment Guide

Construction Equipment Guide is an online directory that aggregates auction listings for heavy construction equipment like excavators. While you can’t bid directly through their website, it’s a great way to find auctions near you.

Search on Ebay

Believe it or not, Ebay is actually a prime destination for heavy equipment sales and auctions. Most listings are restricted to “‘Buy it Now,” meaning you usually don’t have to worry about someone outbidding you at the eleventh hour.

Search on Equipment Trader

Equipment Trader offers both new and used construction equipment for sale. You can also use them as a platform for selling off old equipment.

Look on IronPlanet

IronPlanet is an online marketplace that bills itself as the “Netflix of construction equipment.”

Sellers cosign the equipment they want to sell, then IronPlanet inspects it and lists it on their website. You’ll find a great selection of excavators here.

Look on Machinery Trader

Machinery Trader is a site for selling new and used construction equipment. They also have great discounts on accessories and replacement parts.

What to Consider When You’re Buying an Excavator

Excavators come in a variety of sizes and styles. Before you commit to a purchase, you’ll need to find an excavator that matches your needs or the needs of your rental customers. Consider these three questions before making your purchase.

How Will the Excavator Be Used?

The size and type of excavator can make it uniquely suited for specific applications. For example, a caterpillar excavator can be ideal for uneven surfaces, while a wheeled excavator offers speed and maneuverability when working around asphalt.

Since size usually translates into power, it’s also important to ensure you purchase a machine with enough horsepower and hydraulic flow for the job site. However, you don’t want to buy an overpowered machine that’s not right for the job.

Look for machines that offer specialized features (such as a longer boom arm) that can be used for specific projects.

What Size Excavator Do You Need?

Excavators can be as small as a mini-excavator, which weighs roughly six tons. But you can also purchase excavators in very large sizes. Again, you’ll need to select an excavator that is appropriate for your needs without being too weak or too much for the job.

How Are You Transporting the Equipment?

Larger excavators naturally require specialized care during transport, so it’s important to ensure you have the means to transport the machine from place to place. If you need to purchase additional equipment for transportation, factor that into your overall heavy equipment budget.

Buying New vs. Buying Used: Which Is Best for Excavators?

The price of a new excavator can range from $75,000 to $600,000, depending on its size, brand, and features. Some users opt for a new excavator for the following benefits:

The full manufacturer’s warranty
Better condition
Less chance of requiring maintenance

But despite these benefits, the price break of a used excavator can be very persuasive. And because the average operating lifespan of an excavator is 8,000 to 10,000 hours, it’s easy to find used machinery in good condition.

If you’re on a budget, you might consider buying an excavator that’s two to three years old with fewer than 5,000 hours of total operation. You can generally expect to pay 25% less than a new model.

To go even lower, you can find an excavator that’s more than three years old for as little as 50% of the cost of a new machine. Just make sure to inspect each machine thoroughly to ensure you’re getting an excavator of sufficient quality and value.

Tips for Inspecting Used Excavators Before Buying

If you choose to buy an excavator that has some years on it, you’ll need to make sure the machine is still in good operating condition. Here’s how you can inspect an excavator to ensure top quality.

Check for Slew Ring Damage

The slew ring is found between the excavator’s housing and undercarriage. Metal particles or flakes in the lubricant indicate that wear is taking place. Grinding or clicking noises coming from the bearing can likewise indicate wear or a lack of proper lubrication.

Check for Loose Connections in the Excavator’s Boom, Stick, and Bucket

Excavator sticks and connection points should be secure and tight. Check for any looseness or play in these points, as this can affect the machine’s performance and accuracy.

Inspect the Undercarriage for Damage

Dents, dings, or other damage to the machine’s undercarriage can indicate that the excavator was not used as the manufacturer indicated or the machine was involved in an accident. These signs can also point to further internal damage that can’t be seen from the outside but could require repair in the near future.

Check for Hydraulic Pump Leaks

Check the hydraulic pump, hoses, cylinders, and lines for any leaks. Fluid leaks could affect the efficiency of the machine and even lead to structural damage if the excavator has insufficient fluid levels.

Check the Bucket Teeth

One of the most common signs of wear is scalloping to the excavator’s bucket teeth. This happens naturally over time but can reduce the cutting force of the machine. Wear on the teeth can affect the quality and value of the machine, so take note of this before you buy.

Still not sold? Check out more excavators buying tips with our what to look for when buying an excavator guide.

Making Rentals Easier

Excavators have long been a staple for the equipment rental industry. If you’re interested in augmenting your equipment rental business through state-of-the-art software, contact Quipli today. We can streamline your business and help you deliver a higher degree of customer satisfaction.

Looking for additional equipment rental ideas? Explore our how to start a trailer rental business guide or our top rental business ideas guide.

Learn About Quipli’s rental Software

What to Look for When Buying an Excavator

By Kyle Clements

Published on October 25, 2022

Excavators can be a great investment for your equipment rental business. Unfortunately, not all excavators are worth the cost. And not all of them will fit the needs of your local market.

When you’re ready to add an excavator to your rental equipment business, it’s important to know what to look for. This is especially true for used excavators.

Questions You Should Ask When Buying an Excavator

Figuring out how to choose an excavator should start with asking some key questions. Consider these when you create an equipment purchasing checklist.

What Is the Equipment’s Maintenance History?

Ask for the maintenance logs for the machine. A well-kept machine will also have a documented history of servicing. Assess the details of the records and consider whether the service has been reasonable and performed at required intervals. Pinpoint any anomalies, such as long stretches without maintenance records.

Has the Excavator Undergone Any Previous Severe Damage and Subsequent Repairs?

Ask about any previous damage that the excavator experienced, as well as any major repairs that were needed. Additionally, inspect the equipment for major wear and tear, dents, and signs of past repairs.

If there was past damage and repairs, what types of repairs were needed? And did the equipment experience recurring issues? For major damage, you’ll have to assess whether the equipment’s useful life could be reduced due to it.

Will It Need to Be Serviced in the Near Term or Require Any Replacement Parts?

Figure out when the last service date was and whether there are any needed replacements due in the short term. Note that older excavators may be especially hard or expensive to repair due to hard-to-get parts. Make sure there’s enough manufacturer support for the parts for the excavator you’re considering.

If there are near-term repairs needed, will the seller cover them? If not, any upcoming repairs should be accounted for in the final sale price.

What Are the Seller’s Guarantees and Warranties?

Ask the seller about potential warranties or guarantees about the equipment’s condition. If possible, get any warranties or guarantees in writing. Also, gauge whether the seller will be around to honor these guarantees and try to get references or reviews from prior customers.

Used Excavator Inspection Checklist

Buying a used excavator requires special attention. You’ll want to do a more thorough inspection than you would when buying a new machine. For an excavator, you’ll want to assess the condition of items like the bucket, boom and stick, and slew ring. Here’s what to look for when buying an excavator.

Buckets and Attachments

First, inspect the bucket and attachments. You’ll want to look for excessive wear and tear, as well as any rust. Also, assess the integrity of the welding and look for any scalloping.

Scalloping is the wear between the teeth of the bucket. Half-moon shapes may indicate reduced cutting force of the bucket. Knowing what to look for — and where — will go a long way in helping you know how to buy an excavator.

Boom and Stick

With the boom and stick, look for any cracks in welds (or rewelds) at connection points between the stick and bucket and between the boom and stick. You want all the pins and bearings to be tight at the connection point. Loose connections in the boom and stick will reduce the excavator’s accuracy.

Hydraulics

Hydraulics includes the hydraulic cylinder, pump, and lines. Look for any leaks and cleanliness. Leaks don’t necessarily mean a replacement is needed, but it may mean you need to repair it soon. You’ll also want to consider the hydraulics (and the flows) when it comes to the potential attachments you’ll use.

Slew Ring

Damage to the slew ring can be very expensive to fix. Make sure that the slew ring is in good shape and that there are no signs of overloading or poor lubrication.

Engine

The engine is another major cost component of the excavator, so you’ll want to check for any leaks. Turn on the excavator and listen for knocking or rattling, and look for excessive smoke. Test the various speeds to see if smoke becomes an issue as it’s used. Continue to listen for abnormal noises after you turn the machine off.

Steering

Make sure to test the steering components and assess any play in the steering. Do all functions work? How is the rotation, and is the steering responsive in all directions?

Does the steering offer full rotation of the equipment?

Tracks and Rollers

Regardless of whether the excavator you’re looking at has tracks or wheels, you’ll want to make sure everything is intact and there’s no damage. If the excavator has tracks, how is the tension? If there are rubber tracks, are there any cracks in the rubber? Excavators with tires should have proper pressure and not have any visible damage.

Hour Meter

Make sure the hour meter is operational. If the hour meter appears to be questionable, assess whether the control pedals and other cab elements have excessive wear. If so, this can indicate the machine has had more hours than the meter counts.

Fluids

Ensure that the fluids, such as oil and hydraulic fluid, are at acceptable levels and aren’t running low. Look for any visible leaks. Some leaks are easy fixes, but others could be deal breakers.

Documentation

Ask to see all original paperwork on the equipment, as well as service records. You’ll want to get as much information as possible, including performance and usage history. What projects has the machine primarily been used for, and where?

Ready to Add an Excavator to Your Rental Portfolio?

Is buying an excavator a good investment? If you’re renting out heavy equipment, or even if you’re catering to smaller projects, an excavator is a great option. They’re versatile and can be used for grading or home projects. But you need to find an excavator in good condition to see a great return on your investment.

Growing your rental business is what the Quipli team focuses on. Find out how our rental business software can streamline inventory management — book a demo today.

Check out our list of best mini excavators to rent and our top skid steer brands to rent.

Learn About Quipli’s Construction Equipment rental Software

The Best Mini Excavators for Your Equipment Rental Business

By Kyle Clements

Published on October 25, 2022

Mini excavator use is on the rise — after all, they’re great for navigating tight spots and speeding up home projects. Their versatility makes them handy for tasks from trenching and grading to landscaping, and the rental market for these small earthmoving machines is set to increase.

Sorting through all of the mini excavator brands can be overwhelming. Each manufacturer may offer multiple sizes and features. But the usefulness of these machines makes them worth a closer look.

Some of the key benefits of a smaller excavator include:

Longer useful life
Easier to transport
Less ground damage
Fewer track marks

Even with these benefits, they still accomplish many of the tasks of larger excavators, such as leveling, trenching, grading, demolition, and digging. Mini excavators might be rented for the following projects and more:

Landscaping
Digging pools or hot tubs
Installing sewer lines
Installing driveways

Due to their convenience and practicality, mini excavator rental businesses have a strong outlook. One of the latest construction industry trends has been an uptick in mini excavator sales and rentals.

The Top 10 Mini Excavator Brands for Rental Businesses

With demand for small excavators on the rise, most major construction companies have entered the market, offering smaller machines that weigh anywhere from 2,000 to 20,000 pounds. The versatility of these machines makes them a must-have for construction companies and construction equipment rental businesses.

Here are the top ten mini excavator brands worth considering.

Kubota

Kubota offers various compact and well-rated models in the mini excavator category, including the K008-3 and KX161-3 models. These models weigh just around 2,200 pounds.

Takeushi

Japanese equipment maker Takeuchi has been in business since the 1960s. Takeuchi offers several small excavators, including its TB135, which has rubber tracks and weighs just under 8,000 pounds.

Bobcat

Doosan-owned Bobcat is a major name when it comes to small construction machines, especially skid steers. But it also offers 11 mini excavators that range in weight from 2,600 to 19,000 pounds. Its popular Bobcat 331 weighs just over 7,700 pounds.

John Deere

John Deere, known for its farming equipment, also makes small excavators. Its smaller machines include the G-series of excavators: the 17G, 26G, 30G, and 60G. The 17G weighs 3,800 pounds, while the 60G is just under 14,000 pounds.

Caterpillar

Caterpillar is the premier name in construction equipment. This American manufacturer offers 24 mini excavators, with the 300.9D being the most compact at just over 2,000 pounds. Some Caterpillar mini excavators have Caterpillar engines, while others have Yanmar engines.

Yanmar

Japanese equipment maker Yanmar made one of the first mini excavators in the 1960s. This company offers small excavators equipped with Smart Assist, which helps detect machine issues. Yanmar’s Vi line of mini excavators offers zero tail-swing.

Komatsu

Komatsu, the Japanese construction equipment maker, offers various compact excavators weighing up to 18,000 pounds. The smallest Komatsu excavators include the PC30MR-5 and the PC35MR-5, which weigh just under 7,000 and 9,000 pounds, respectively.

JCB

Founded in the U.K. in the 1940s, JCB has long specialized in construction equipment, including small excavators. Its mini excavators include the 19C-1E zero-emission electric excavator, weighing just two metric tons. It also offers various other models that weigh anywhere from 4,000 to 20,000 pounds, including the 18Z-1 zero tail-swing model.

CASE

CASE Construction Equipment, which is owned by CNH Industrial, is known for its skid steers, but it also makes small excavators. It offers six mini excavator models that range from 4,000 to 13,000 pounds.

Hyundai

While better known as a car manufacturer, Hyundai also makes heavy equipment. It offers compact excavators in eight models, with the smallest being just under 4,000 pounds.

When you compare mini excavators, you’ll also want to consider which projects your customers tend to work on. Do you need the smallest excavator available to get into tight spaces and dig around foundations and walls? Or do you need a bit more power for larger grading projects?

The size, weight, carrying load, and potential rental market will all play a role in your decision. Fortunately, you’ll likely find a mini excavator that fits your budget and needs.

What’s the Best Mini Excavator for the Money?

Key considerations when buying a mini excavator include the size, available attachments, and boom type. However, the driving force is generally excavator cost. The mini excavator comparison below is a great place to start. These are five of the best mini excavators for the money.

CAT 301.6C from Caterpillar

The CAT 301.6C, made by Caterpillar, is one of the smallest excavators the company makes. Costs start at around $33,000, and the model weighs just over 4,000 pounds.

Bobcat 418

The Bobcat 418 starts at around $20,000 and weighs 2,600 pounds. It’s relatively easy to transport and is known to be dependable.

Kubota Mini Excavators

Kubota offers a variety of small excavators, with many starting below $20,000. The Kubota K0008-3 is one such excavator and weighs just 2,200 pounds.

Yanmar Mini Excavators

Yanmar offers several affordable small excavators. These include the ViO35-6A, which weighs just over 8,000 pounds. Some ViO series Yanmar compact excavators go for around $30,000.

Komatsu Mini Excavators

Most Komatsu mini excavators start at $25,000. These include its popular newer model, the PC30MR-5. Komatsu also makes the world’s smallest excavator, the PC01-1, which weighs just under 700 pounds.

The best mini excavator will have a good combination of price and reliability. But digging deeper, which excavator you choose will also depend on the attachments offered and size — for example, do you need more maneuverability or power?

Ready to Add the Best Mini Excavator to Your Fleet?

Mini excavators are growing in demand and could be a great addition to your equipment rental business. It’s tough to beat their advantages over large machines, including the ease of transport and operation.

The Quipli team specializes in automating your equipment rental business so you can spend time on what matters most. Quipli’s platform will streamline your inventory management process — reach out today to get a free demo.

Looking to purchase an Excavator? Learn more about the process with our where to buy excavator and our what to look for when buying an excavator guides.

Learn About Quipli’s rental Software

The Best Skid Steer Brands for 2023 & Beyond

By Kyle Clements

Published on October 25, 2022

Skid steers are one of the most versatile pieces of equipment for any project. They’re nimble and can be paired with various attachments.

However, picking the right skid steer for your rental business can be overwhelming. They come in many sizes, with varying horsepower and compatible attachments.

The Top 5 Skid Steer Brands for 2023

When it comes to picking the best skid steer for your rental business, sticking to one of the top five skid steer brands is a safe choice.

Bobcat

Bobcat owns the skid steer market, so much so that its name is synonymous with skid steers. It has roughly 40% of the market share.

The company, originally Melroe Manufacturing, made the first skid steer and now offers a massive line of options. Bobcat is the industry leader for a reason; it offers touch displays, best-in-class lift cars, and strong hydraulics systems.

Caterpillar

The biggest name in construction equipment entered the skid steer market in 1999. Caterpillar’s name is synonymous with reliability and quality. The same is true of its skid steers. It offers nine different models that range in weight and horsepower.

Caterpillar skid steers range from 1,500 to 3,700 pounds, with between 65 and 110 horsepower. These skid steers have electric throttle features and easy access for servicing.

CASE

CASE Construction Equipment merged with skid steer maker New Holland in 1999, but CASE has made these machines since 1969.

The company offers eight skid steer models ranging from 1,600 to 3,400 pounds and 60 to 90 horsepower.

John Deere

John Deere, known for its farming equipment, also makes skid steers. Its skid steers come in a variety of sizes, from 6,000 to 10,000 pounds. Horsepower ranges from 65 to 100.

Despite being known for its reliability, John Deere doesn’t have a huge selection of skid steers, but the ones it offers are made for heavier attachments. However, John Deere skid steers tend to be a bit more expensive.

JCB

JCB offers some of the best compact and affordable construction machines, including skid steers. The cabs are larger than other skid steer brands, making them impressively comfortable.

Small machines from JCB are known for being fuel-efficient. All eight skid steer models use the same engine, making them easier to service. Some have an operating capacity of 2,000 pounds, while others are over 3,000 pounds.

What Is the Best Skid Steer Brand?

Any of the top skid steer brands would be a great choice for your rental business. However, the consensus is that Bobcat makes the best skid steers — as it owns 40% of the total market share. It was the first to introduce skid steers to the market in the 1960s.

Bobcat offers various sizes, including compact models for yard work and larger models for major construction projects. Caterpillar is another reliable name, with a much larger variety of equipment. Both brands are relatively easy to service and experience few breakdowns. However, they are both generally more expensive than other brands.

What’s the Best Skid Steer for the Money?

JCB offers the best skid steer for the money. The company makes some of the most reliable smaller construction machines. JCB’s skid steer was recognized for its resale value by EquipmentWatch. In 2019, the company gave JCB the Highest Retained Value Award.

The power offered by JCB skid steers is more than enough for any job, plus the controls are modern, and the cabs are roomy. However, there are fewer models to choose from.

So who makes the best skid steer? Bobcat and Caterpillar skid steers are both known for holding their value very well. Overall, the best skid steer to buy will come down to those that fit your major needs, such as lift capacity and reliability.

How to Choose the Right Skid Steers for Your Rental Business

Below are six key criteria to consider when looking for the best skid steer brand.

Lift Capacity

Lift capacity is how much the skid steer can lift. Skid steers will have one of two lift arm styles: radial and vertical lifts. Vertical lifts are for up-and-down movement versus reach. This option is best for moving heavy pallets or dumping material into trucks.

Radial lifts are good for backfilling and putting materials on flatbed trucks. The bucket can be lifted in an arc, allowing for better range.

Reliability

How reliable the equipment is should also be a major factor. You don’t want to spend hundreds of dollars on repairs each month. Instead, it’s better to invest in a high-quality piece of equipment. Additionally, a good maintenance plan will boost the useful life of any skid steer.

Available Attachments

The attachments available for the skid steer are also important. A variety of attachments will increase the skid steer’s versatility and make it more marketable for rentals. You should consider the following attachments:

Pallet forks
Backhoes
Brush cutters
Augers
Grapples
Bale spears
Buckets
Blades
Trenchers

The more attachments a skid steer can use, the more projects it can tackle.

Suitability for Different Project Scopes

How well does the skid steer work for different projects? For example, you might need a skid steer to fit into tight spaces. In that case, look for a compact model. In contrast, bigger loads will require a larger capacity.

Type of Hydraulic System

Skid steers come with one of two hydraulic systems: low-flow or high-flow. The flow of the hydraulic system is how hydraulic fluid is moved through two hoses in the skid steer. Low-flow skid steers move less hydraulic fluid per minute than high-flow.

The higher the flow, the more powerful the skid steer, meaning it can use larger attachments, such as snow blowers and stump grinders.

Engine Type

Engine type comes into play when meeting EPA emission requirements; 75-horsepower diesel engines on non-road equipment must be Tier 4 compliant. These engines, however, require additional maintenance to prevent damage. Consistent maintenance and keeping the fuel filters clean can help the engine stay in good working order.

Ready to Add a Skid Steer to Your Rental Portfolio?

The five skid steer brands above are great if you’re looking to add a skid steer to your rental equipment selections. A skid steer is a versatile piece of equipment that can fit various attachments and can be used for snow removal, grading, loading, or lifting.

Making the most out of your rental business is the goal of the Quipli team. We provide an automated system for managing your rental inventory and scheduling. Reach out today for a demo.

Ready to expand your equipment inventory? Explore these guides to explore your fleet: How to start a trailer rental business and best mini excavator to rent.

Equipment Rental Insurance: What It Is & Why You Need It

By Kyle Clements

Published on October 25, 2022

Equipment rental insurance is a form of insurance that you can get if you rent out equipment to customers. It’s instrumental in helping avoid costly losses and downtime for your rental business.

Equipment coverage can insure large pieces, such as excavators, as well as the tools and inventory you rent out, such as post-hole diggers.

What Is Rental Equipment Insurance?

Insurance for rental equipment covers the items you rent out, such as tools, equipment, and other inventory. Rental business insurance can be bought to cover any kind of equipment.

Having rental equipment insurance coverage will protect you in case something happens to your equipment, such as theft or a major accident. There are also other options for your business that’ll cover you beyond just lost equipment.

When it comes to rental equipment insurance, you’ll also have policy specifics depending on the equipment you rent out. If you offer heavy equipment, your insurance policy may assume that you’re renting to individuals or companies that are insured and licensed.

There may also be limits on how long you can rent out equipment, as the longer the rental period, the greater the likelihood of damage or loss. You can help protect yourself with proper insurance coverage and the rental contract you use, which can stipulate renters liability insurance for your customers.

Types of Rental Insurance

Equipment rental business insurance is available for various types of equipment. There are different coverage options and plans based on the equipment you rent out.

Naturally, rental insurance will vary by business. For instance, insurance types and coverage options will be different for a party rental business than for a golf cart rental business. Heavy equipment rental insurance will have different options as well.

Here are some key types of insurance for equipment rentals that you’ll likely encounter on the market.

Floater Coverage

Also known as inland marine coverage, floater coverage is a type of add-on coverage that covers rental properties not covered by other policies. This includes property you rent from others as well as newly acquired rental equipment.

Commercial Property Coverage

Commercial property coverage is a broad category of insurance that, in some cases, covers the things you own and use as part of your business along with your company’s physical premises and related real estate. This could include office furniture, computers, and non-rented equipment and appliances.

Commercial property coverage covers rental businesses in the event of damage or loss, such as employee theft.

Commercial Auto Coverage

Commercial auto coverage is for the vehicles you own and use as part of your business, such as delivery vehicles. This will cover vehicles you rent, lease, borrow, or own.

Umbrella Coverage

Umbrella and excess coverage will protect you if a claim goes beyond its limits. For example, if you have a major liability claim from a lawsuit, umbrella coverage will kick in if the claim exceeds the limits of the primary general liability policy.

Other Coverage Options

There are also other specialized insurance services offered to rental businesses, such as business income coverage. Business income coverage covers lost income if the business can’t conduct business due to a covered event.

For example, business income coverage for off-premises utility services will replace business income if they can’t conduct business due to unexpected utility interruptions.

Another common example is property-in-transit coverage, which will cover your rental property if it’s damaged during shipment.

What Does a Basic Equipment Insurance Policy Cover?

There are two main types of rental equipment insurance coverage: covered property and replacement cost. Covered property covers anything you rent out, while replacement cost coverage is for equipment that must be replaced.

Good basic equipment insurance should include broad coverage, protecting such things as lost or stolen equipment, equipment damaged due to misuse or weather, and cleanup for covered incidents.

Covered Property

Covered property is coverage for pretty much anything you rent out. For example, covered property coverage would cover flatware, serving utensils, and party supplies for a wedding rental company.

Other items that would fall under the heading of covered property include wood chippers for a lawn equipment rental business and video recording equipment for a media rental company.

Replacement Cost

Replacement cost coverage is for equipment that becomes irreparably damaged or lost. Replacing such equipment can be costly. This coverage can ease the financial burden by providing some or all of the money required for replacement.

General Liability Insurance for Equipment Rental Businesses

Insurance for equipment rental generally includes covered property and replacement cost coverage, but you’ll also need general liability insurance to protect you beyond rental-specific issues. General liability coverage will protect you from lawsuits customers file against you.

Lawsuits can arise for a variety of reasons. For example, a client that’s injured while using equipment they rented from you may file a lawsuit to cover their injuries and distress. Similarly, a property owner might sue you if a piece of equipment you rented out to them accidentally destroys a building. General liability insurance can help protect your business from having to use valuable resources to fight such lawsuits.

General liability coverage can protect your business against lawsuits, damages, and lost equipment. But it can also protect against negligence, slander, errors and omissions, and contractual liability.

The risks of owning a rental equipment business are unique and diverse, but good insurance can greatly hedge many of them. As mentioned, a good rental contract can also protect your business from loss.

It helps to know what your insurance covers and what it doesn’t.

For example, what happens if a customer simply doesn’t return the equipment they rented? What happens if they lend out the equipment to someone else and that person damages your equipment or injures someone? These are the kinds of questions you’ll want to think through and address with your insurance agent.

Make Rentals Easy With the Right Partner

The less you have to worry about as an equipment rental business owner, the better. Proper insurance coverage can ease your mind regarding what might happen to your equipment when it’s in customers’ hands.

Another way to reduce your business-related stress is a proper rental inventory management system. Quipli offers a platform that does the hard work of managing your rental inventory for you. Contact us today to get a demo.

Need help evaluating your equipment value? Here are two handy guides: New and used equipment values and how to value a rental business.

Learn About Quipli’s rental Software

Equipment Loan Calculator

By Kyle Clements

Published on October 22, 2022

u’ll need to spend on equipment? Using an equipment loan calculator can help you find out exactly what you can afford.

Construction equipment can be expensive, and you’re likely to need business loans to purchase it.

A good equipment payment calculator will allow you to customize all aspects of your loan — helping you figure out exactly what works for you.

Many banks offer equipment financing, and some financing companies specialize in loans for construction and heavy equipment. Before contacting a lender, you can use an equipment finance calculator to get an idea of what to expect.

The key inputs for a heavy equipment loan calculator are similar to those for many loans — the amount financed, the interest rate, and the loan length (also known as the loan term). However, there are some nuances specific to the equipment financing industry that you should know about.

Free Online Construction Equipment Loan Calculator

Here’s a free online equipment finance calculator that can help you see how your payment will change based on the various inputs you choose, such as interest rates and loan terms:

Tired of juggling spreadsheets and calculators? Click here to book your demo with quipli !

How Equipment Loan Payments Are Usually Determined

Three key inputs will largely determine your loan payment:

The amount you’re financing
Your interest rate
The loan term

When using an equipment loan payment calculator, you’ll find that the more money you finance, the higher your payments will be. This reality is true for interest rates as well — the higher the rate, the higher the payment.

However, the payment amount will go down if you increase the loan term (although you’ll likely pay more interest over the life of the loan).

Let’s look at the three key elements in more detail:

1. Equipment Loan Total Amount

The loan amount will be the amount you’re financing, which is generally the total purchase price of the equipment, less any down payment you make.

Equipment costs in your industry will largely determine the amount you need to finance. Other factors that will determine the amount you can borrow include the lifetime value of the equipment and whether it’s new or used.

Some equipment loans are for $5,000 or less, while some lenders have minimums on the amount they’re willing to lend for equipment loans, such as $10,000 or $25,000. Typically, the lower the amount you’re financing, the higher the interest rate. If you are financing $5,000, the rate will tend to be higher than if you’re financing $50,000.

2. Interest Rates

Interest rates will vary based on the industry and equipment you’re financing. They can be anywhere from 2% to 20%. If you’re required to provide a personal guarantee, your credit score will also play a part in determining the interest rate.

Other factors that play a part in the interest rate calculation are your company’s financials, such as annual revenue and length of time in business. The type of equipment and its lifetime value will play a role in the interest rate as well.

Resale value is also a consideration. If the equipment holds its value well, you may be able to get a lower rate. The lender might see the loan as less risky when compared to one for equipment that depreciates quickly.

3. Loan Terms

The loan term is the length of time of your loan. This duration for equipment loans tends to be between two and seven years. Some lenders may have a cap of five or ten years on the terms they’re willing to offer for equipment loans.

Generally, the longer the loan term, the higher the interest rate tends to be. Thus, if you’re financing a piece of equipment for two years, the rate should be lower than if you selected a loan term of seven years.

Note that you can often pay the loan off early or make additional payments to shorten the loan term (and save interest). However, some financing companies may charge a prepayment penalty if you decide to pay off the loan early. Make sure to factor that cost against any interest savings when you’re considering paying early.

What You Should Know About Equipment Financing

Even the best equipment financing calculator won’t be able to account for your specific situation or the special requirements that a lender might have.

Minimum Requirements

Equipment lenders may have minimum requirements for your business, such as thresholds for annual revenue and length of time in business. For example, a lender may require that you have at least $25,000 in annual revenue and have been in business for at least six months before considering you for a loan.

Other key requirements include minimum credit scores and required down payment amounts, which may vary between 5% and 20%. Also, recall that some lenders may have a cap on the loan term, such as 48 months, and minimum loan amounts, such as $25,000.

Special Requirements

Some lenders will also allow for special repayment schedules, such as weekly or bi-weekly payments instead of monthly ones. They may also specify a balloon payment that’s due every 12 months or at the end of the loan’s term.

Other things to watch out for when using a construction loan calculator include upfront charges by lenders, such as origination and application fees. Don’t forget to ask about prepayment penalties or potential discounts for early payoffs.

Examples of Typical Loan Payments for Construction Equipment

So what do the numbers generally tend to look like? Here are a few examples, based on the average cost of common types of heavy construction equipment, based on our calculator.

These numbers assume a 36-month loan repayment period, an interest rate of 7.5%. Total loan amounts are based on the mean average cost for each type of equipment.

(For more information on typical prices for heavy equipment, check out our post on Construction Equipment Prices in 2022.)

Excavators: $9,331.87
Backhoes:$1,477.55
Bulldozers: $3,888.28
Skid steer loaders: $1,010.95
Wheel loaders: $4,665.93
Concrete mixer trucks: $3,888.28
Motor graders: $7,776.55
Forklifts: $1,088.72
Bucket trucks: $2,752.90

Prices can vary significantly, but these numbers can give you an idea of around how much you can probably expect to spend each month. Need more help on pricing? Explore our how to value a rental business guide.

Financing Equipment for Your Equipment Rental Business?

If you’re looking to add new equipment to your rental business and increase your profit, Quipli can help. Quipli’s rental eCommerce platform helps manage your inventory and website to make it easier for customers to find what they need.

Our all-in-one software also makes it easy for you to manage your invoices and orders. You can find out how Quipli makes the sales and inventory management processes easy by booking a 15-minute demo.

Starting a new rental business? Refresh on the basics with how to start equipment rental business.

Learn About Quipli’s rental Software

How to Value a Rental Business: Valuation Tools and Methods

By Kyle Clements

Published on October 22, 2022

After starting a rental business and running it for years, you may eventually find yourself thinking about selling it to someone else.

To sell a business, you’ll need to get an accurate determination of how much the business is actually worth. There are several different valuation methods that you can use to do this.

Types of Valuation Methods

Various methods can be used to value a rental business. Three of the most common methods are asset value, future earnings, and comparable sales.

Asset Methodology

The asset methodology for valuing a rental business uses the value of the equipment you own.

This is the fair market value of all the assets you possess. Thus, you’d find the value of each piece of equipment and add them all up. Each asset’s value can be calculated based on what similar pieces of equipment sell for on used equipment marketplaces.

If a particular asset is no longer on the market, you may have to use another method to value it, such as figuring out what it would take to build your equipment to the current specifications with today’s price. Similarly, if you have a customized asset, you may need to calculate what it would take to add the same customizations in today’s dollars.

Future Earnings Methodology

The future earnings methodology calculates your company’s value based on its current and future earnings. This involves estimating what your business will likely generate in the future and discounting it back using a discount rate.

This method is also known as a “discounted future earnings” valuation, as it requires you to forecast your rental company’s future revenue. After modeling earnings for each period and calculating a terminal value, you discount the amounts back to the present to get the current value.

Comparable Sales Methodology

Comparable sales valuations look at what similar businesses have sold for recently. This generally involves calculating the valuation multiples for past business sales. The ideal multiple will be based on the specific industry.

For example, if your business generates $2.2 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) and the average EBITDA multiple that equipment rental businesses sell for is 8, your valuation would be roughly $17.6 million.

While the EBITDA multiple is widely used, you may also see other multiples applied, such as an earnings multiple, sales multiple, or EBIT (earnings before interest and taxes) multiple. Some comparable sales methodology valuations may include an average of various multiples.

Factors Impacting Your Valuation

Many factors can come into play when valuing your equipment rental business. Most of these are things you might expect, like revenues and profit margins, but there are others worth highlighting.

Amount of Sales

To start, you’ll need to know the estimated amount of sales you’ve had — specifically, your average annual sales figure. Generally, the higher the sales, the better.

Total Profit

Total profit is another figure you’ll need to arrive at an accurate rental business valuation. This is the average annual net profit for your business. Once again, the higher, the better.

Recent Growth Trends and Future Growth Projections

The continued growth of your sales and profits will also play a key role. Is your business slowing down, or have sales and profits been steadily on the rise? Is your business expected to keep growing with new sales channels or partnerships? These are all questions worth knowing the answers to.

Growth in the Number of Sales (and the Origin of That Growth)

If your revenue is on the rise, where is the surge coming from? Maybe you’ve been more effective with marketing, or perhaps the sales growth was short-lived. Prospective buyers will want to know what’s behind your growth and whether it’s sustainable.

Market Positioning

Where are you regarding market share for your industry? If you’re the market leader, do consider whether you have any competitive advantages that will let you keep that position. If not, look for opportunities to claim more market share.

Geographic Location

When it comes to the location you serve, it’s wise to determine whether you have opportunities to expand your current geographic footprint. Being located in a fast-growth area for the equipment you offer can be a great advantage.

Systems and Processes in Place for Running the Business

Lastly, think about how involved you are with your business. Do you have systems in place that let your business run efficiently without a lot of labor hours? You might have opportunities to automate parts of your business, such as inventory or rental management, for superior efficiency.

Selling Your Equipment Rental Business

When it comes to selling your rental business, you have several options.

Business Brokers

Business brokers are great if your company generates $1 million or less in annual revenue. Business brokers specializing in the rental industry can be found on various online marketplaces.

Merger and Acquisition Advisors

Merger and acquisition (M&A) advisors are suitable for businesses with revenues between $1 and $50 million. A good M&A advisor will help you find buyers, negotiate terms, and structure a favorable deal.

Investment Banks

Investment banks are ideal for larger businesses, especially those with more than $50 million in annual revenue. Investment banks specialize in tracking down big buyers and handling the terms of the deal.

Interested in Leasing your rental equipment? Explore our guide on equipment rental leasing pricing strategy today!

Are You Ready to Sell Your Business?

If you have a rental business but are considering breaking into a different industry, you’ll first need to figure out what your business is worth. This is true if you need a business appraisal as well. A precise valuation will ensure you get the correct amount for your niche business.

These well-protected businesses sell well and often, making it easy to find an estimated value for your company. A qualified broker or advisor can help you figure out your valuation and connect you with prospective buyers offering what your business is worth.

There are also a few simple steps you can take to help boost your valuation. A great place to start is to make sure you have as many tasks automated as possible, including your rental and inventory management processes.

Learn About Quipli’s rental Software

How to Keep Track of Your Rental Inventory

By Kyle Clements

Published on October 13, 2022

If you own and operate a rental business, efficiently managing your rental inventory should be the top priority. Whether you use a rental inventory tracker or not, you want to understand what you have available and when. Otherwise, you’re likely losing money due to lost revenue opportunities.

Compile a Full Inventory of Your Equipment

When you’re trying to figure out how to keep track of rental inventory, step one should be to gather your equipment information. This information includes a list of:

All of your assets and equipment
Their makes and models
Their current conditions
Their current values

Then you’ll want to start putting the necessary processes in place to efficiently manage your rental inventory. This work includes figuring out who is in charge of tracking equipment and its current state. How will you keep track of repairs and maintenance? Who’ll be in charge of that?

Note that software tracking systems can help make the entire process of tracking and managing inventory easy and straightforward. They’re much more effective at ensuring your information and availability are always up-to-date.

Decide on a Method for Tracking Your Products

When it comes to tracking rental inventory, there are three main categories you’ll want to group your products into:

Trackable Individual Equipment

This group is the easiest category. It includes all of your trackable equipment. These are your key assets, such as your heavy equipment if you’re running a heavy equipment rental business or your power washers for your power washing rental business.

Bulk Inventory

Your bulk products will include items that it doesn’t make sense to track individually, such as small items you might provide to a customer. You don’t need a unique identifier for each bulk item. These items are often low-cost and easily replaced.

For example, if you’re running a catering rental business, the bulk inventory items might be flatware or silverware. If you have 100 flatware items, you wouldn’t want — or need — to itemize every item. You’d categorize these in bulk and not be too concerned if you only got 99 forks and spoons back after an event.

Consumables

Consumables are things that will be “consumed” by the customer. These are often add-on items that you can offer your customers, such as washing fluid or tape. Consumables are usually items that the customer won’t be returning to you.

Choose an Identification System

After grouping all of your inventory, you’ll need to figure out how to identify each piece. Each product needs a unique identifier.

In particular, you’ll want to have a stock-keeping unit (SKU) for each item. Note that SKUs can be bundled. You can use the same SKU for variations of the same product, such as the same make and model of a golf cart in different colors.

Labeling your SKUs with a product name or word helps you identify the product is important. Simple is usually best here.

Photos are another form of identification that you’ll want to attach to your product records. Product photos will give customers a visual preview of what they’re renting. Ideally, you’d use an image of the actual product or a stock image that’s the same unit as yours.

You’ll also want to bundle near-identical products to help make scaling easier. If you have the same make and model, you should create variations under the same SKU. Each SKU would still have its own price and stock count, but this setup will save you legwork as you grow, keeping your inventory list manageable.

Create Notes on Each Item

In addition to the general information attached to each SKU, you’ll also want to maintain notes for each product. These notes can be for your own inventory management purposes, as well as for the customer.

You’ll want to have a place to attach various types of notes to each item, such as detailed descriptions of the product, its current location, serial numbers, and a log of any repairs or maintenance. Managing these notes is where rental equipment management software becomes a big help.

The notes section in such software platforms can host a variety of stored information, such as custom fields, tags, and almost any data that might be relevant.

Determine Your Pricing Structure for Each Item

When it comes to pricing your rental inventory, there are two key pricing models: flat fee and structured pricing. Which you’ll choose depends on the products you’re offering.

Flat Fee

Many rentals are priced based on a flat fee structure that involves a set price for a set period. This setup can involve a particular amount per hour or per day, such as $300 per day. The rental fee would be $2,100 for a week in such a case.

Structured Pricing

Structured pricing is also popular among rental businesses. This approach has a tiered pricing setup. It factors in a slight discount on longer rental periods.

For example, you may charge $300 per day, but for longer rentals lasting a week, you could charge $1,925 (which averages out to $275 a day) to gain a competitive advantage over other rental businesses.

Leverage Inventory Management Software to Track Your Rental Inventory Efficiently

A rental inventory management system coupled with an equipment scheduling software will guarantee you’re getting the most revenue by efficiently managing your inventory.

Quipli can help you track your rental inventory regardless of your business. Our inventory management software is easy to use and intuitive while providing out-of-the-box equipment rental website templates. Reach out to the Quipli team today to set up a demo.

Learn more about inventory management with our equipment rental excel template.

Learn About Quipli’s rental Inventory Managnent Software

How to Start a Trailer Rental Business: A Beginner’s Guide

By Kyle Clements

Published on October 12, 2022

As the name implies, utility trailers can come in handy. Even a pickup truck with a sizable bed may not be large enough or offer the convenient loading and unloading needed to meet the owner’s needs.

A utility trailer, however, easily hooks to the tow hitch and has a platform lower to the ground, making it easier to load and haul trash, furniture and appliances, lawn care equipment, smaller vehicles (motorcycles, jet skis, etc.), camping and sports gear, livestock, and more.

Utility trailers can be open or closed, depending on need, and having the right one can make any number of jobs easier.

Of course, they can be a rather expensive purchase for the average consumer or a business, ranging from several hundred to several thousand dollars.

Additionally, they take up valuable storage space when not in use. Many people would rather rent a trailer as needed and forego the expense and potential hassle of ownership.

If you’re looking to start a trailer rental business, you might be surprised to learn that entry costs aren’t astronomical. Your area could have a significant market for such rentals if you know which demographics to cater to.

With the right preparation, you’ll have the best chance to make your utility trailer rental business a success.

Learn as Much as You Can About the Trailer Rental Industry

The first thing you’ll want to consider before starting your rental business is what trailers are, what they’re used for, and what different kinds exist.

Start by researching different types of utility trailers and what they’re used for. Understand the costs, uses, benefits, and limitations of a range of products.

You also need to understand what individuals and businesses in your area would want to rent trailers for.

If you live in an agricultural area, moving livestock could be a significant market, whereas an upscale area might require a lot of yard maintenance, spurring rentals from local landscaping businesses.

If you live in an urban area with a lot of population turnover, you could get clients who are interested in moving furniture and appliances.

Consider your fee strategy — hourly rates, day rates, long-term rentals — and calculate how long it will take to recoup startup costs before turning a profit. Make sure to factor in overhead like registration and insurance, maintenance, and leasing costs for a storefront/storage, as well as any employees you may retain.

The list goes on, but understanding your products, expenses, potential income, and customer base are important initial considerations.

Evaluate Local Market Demand and Competition

Before getting into the specifics of how to start a trailer rental business, you need to research the local market and make sure there’s room for your business to thrive.

While a higher population could equate to higher demand, rural areas can also represent a significant market for utility trailer rentals, where they’re used to haul feed, livestock, farm equipment, and other supplies.

This is why market research is crucial. You need to determine not only who your customers might be but also the relative volume of demand. It may vary by season. You need to know these details to determine whether your business is viable.

Don’t forget that you might not be the only one interested in filling a demand for utility trailer rental. You need to do competitive research to find out how many other businesses offer similar products for rent.

You may have a lot of competition or a little, but when you see what others are offering, you could find an untapped niche and set competitive rates to build your business.

Determine How Much Starting Capital You Need to Launch Your Business

The highest potential upfront cost of starting this business is the utility trailers, which could range in price from about a thousand dollars for small open trailers to tens of thousands of dollars for a horse trailer. Remember that you can charge significantly higher rental fees for more expensive trailer types.

Generally speaking, if you purchase smaller open trailers, you could get your business off the ground with a handful of utility trailers for maybe $15,000 to $20,000. You might, for example, purchase six 5 ft x 8 ft open trailers at roughly $1,500 each, or about $9,000.

Don’t forget to factor in additional equipment rental costs like registration (if required in your state) and insurance.

Because trailers aren’t motorized, auto insurance may not be required. However, it’s always wise to insure your property against damage or theft. You could also require renters to take on liability or pay an additional fee for insurance coverage while the trailer is in their possession.

Add in the cost to lease a small business office with a one-year lease agreement and dedicated parking to store trailers. This cost will vary by location, of course.

You may not need employees in the beginning if you’re planning to run everything yourself, but you will need to factor in costs for a DBA: setting up a corporate structure (LLC or other), marketing, signage, office furniture, computers, software, and so on.

Choose a Business Name and Domain Name

Once you’ve completed the necessary research into the market and startup expenses, the next step in how to start a trailer rental business is to have a bit of fun.

Make a list of business and domain names that represent you, your business, and your location. Then check to ensure your preferred names and domain addresses aren’t yet in use before moving forward and establishing your DBA and website.

Create a Business Plan

A business plan is a document that maps out your research, goals, financing, intended operation, and all the steps you will take to succeed for your first one to two years in business, up to as many as five years of operation.

It should include items like:

Executive summary
Business description
Market analysis
Competitor analysis
Services offered
Pricing strategy
Marketing strategy
Funding sources
Financial projections

This document isn’t just for your benefit; it also provides lenders with information about how you will make your business successful so they can decide whether they’ll lend you the startup capital you need. It must be comprehensive.

Register Your Business, and Register for Taxes

Before scheduling annual versus quarterly tax filings, you need to make sure your business is registered so you understand your obligations and can plan for the most favorable outcomes.

While a limited liability corporation (LLC) is the most common structure for this type of business, you could also set up a sole proprietorship, a general partnership, an S-Corp, or a C-Corp.

Before choosing, you’ll need to understand the requirements, benefits, and possible risks associated with each. You must also obtain an employer identification number (EIN) for banking and tax purposes.

Secure Funding

Funding for your business could come from a range of sources, including:

Personal savings
Contributions from a business partner, family, or friends
Bank loans
Small Business Association (SBA) loans
P2P lenders

To qualify for a business loan from a bank or investor funding, you’ll need a range of documents, such as:

Business plan
Financial projection statements
Personal tax returns
Details of how you will use funding
Details of your business and services

These display your research, competence, planning, and fitness to operate a successful business, as well as how you will use funding wisely and repay debts promptly. For a deeper look into loans, explore our equipment loan and finance calculator.

Create a Website

So much business is conducted online these days that you can’t afford to operate without a website. You can pay a professional designer to do it for you, but early on, you may want to manage it yourself to save money.

You’ll need a range of rental software solutions to do this, starting with management programs that allow you to track inventory and take online bookings. You’ll also want to optimize your website to drive targeted traffic, which will fall under your marketing budget.

Create a Marketing Strategy to Promote Your Trailer Rental Business

Marketing is all about increasing awareness of your business and compelling desired actions from potential customers (i.e., visiting your website, booking rentals, etc.).

If you have no background in marketing, you may want to hire professional help to create a sound local marketing strategy or a business launch campaign.

SEO: Bringing in Leads from Google Searches

Search engine optimization (SEO) is incredibly complex, but it has to do with efforts to ensure that online search bots recognize your website and rank you at the top of search engine results pages for relevant searches for businesses like yours.

Paid Search Marketing

Paid search marketing through programs like Google Ads can help you to increase your online exposure to target demographics.

Paid and Organic Social Media Marketing

If you have the time and you feel confident promoting through social media platforms (Facebook, Instagram, Twitter, and TikTok), you could devise your own strategies to gain an organic following.

If this is too slow for you, paid social media marketing may prove more effective.

Email Marketing

Sending emails to prospective customers, or even sending old-fashioned print flyers, could also be part of your strategy.

These efforts not only raise awareness among local customers but also allow you the opportunity to offer deals that increase interest and follow-through.

How to Build a Trailer Rental a Business to Last

There are several important steps to take when starting your trailer rental business, and you can’t skimp on software if you want to create a successful operation with room to grow and thrive.

If you’re starting a trailer rental business, it’s a smart idea to invest in the right software tools.

At Quipli, our advanced rental management software makes it easy to accept bookings, track rentals, manage inventory, and more.

To find out more about Quipli, book a demo with us any time.

Learn About Quipli’s rental Software