A study by the American Rental Association revealed that the equipment and event rental industry is expected to grow by 9.2% in 2022, 6.8% in 2023, and 4.8% in 2024.
For companies that have suffered significant losses as a result of the COVID-19 pandemic, this is very welcome news. However, company owners must remember that ensuring the profitability of their business is paramount, and before they rent out equipment, they need to include calculating profit as a part of their business plan.
The following is a list of the ten best rental business ideas:
Wedding Event Rentals
Weddings were largely shut down during the COVID-19 pandemic, as large events were restricted due to increased regulation and an effort to contain the disease.
As a result, we can expect pent-up demand for the wedding event rental business. A wedding event rental business is relatively easy to start, as it doesn’t require too much initial financial outlay. Essentially, things you can rent out will include tables, chairs, catering equipment, and decor.
Party Equipment Rentals
People are always able and willing to plan parties. Similar to weddings, many large parties were postponed due to COVID-19 regulations that limited large social gatherings.
As a result, you can expect an increase in parties as restrictions are relaxed. Common equipment rentals in the party industry include bounce houses for children, karaoke machines, tables, chairs, and catering equipment. This field is also one of the best rental business ideas since the initial investment is generally small.
Dumpster rentals are commonly needed, especially in areas where there are significant remodeling or construction efforts for homes or businesses.
They are also popular for large events or at times when a significant amount of trash is expected. There are two general types of dumpster rentals — stationary and roll-away. Roll-away dumpsters are typically the most profitable since they may easily be latched onto a heavy-duty truck after use.
Car Rental Business
The car rental business can be very profitable, especially in areas close to airports and hotels or located in big cities. If you don’t want to open your own business, you can start a franchise with a corporate rental car company such as Avis Budget Group or Hertz.
In addition to the earnings you’ll make from renting vehicles, you can also include add-ons such as GPS and car seat rentals that will bring in more money. However, car rental companies will need to perform regular maintenance on their vehicles, so it’s important to factor that into your rental prices.
Electric Scooter Rentals
Electric scooters have become one of the most popular rentals in recent years as people need a quick way to navigate around metropolitan areas without a car. There are a number of electronic scooter companies that offer franchise opportunities, or you can start your own.
The low cost of initial investment for electric scooter rentals makes this one of the best things to rent. Make sure to add some helmets and safety gear to protect your customers and increase your revenues.
Canoe and Kayak Rentals
In areas close to rivers and streams where water activities such as canoeing and kayaking are popular, rentals of these items can be very popular. Many vacationers love water activities that involve some exercise, so locating a canoe and kayak rental company close to scenic areas with hotels nearby can be quite successful.
In addition, the low costs of canoes and kayaks make this a relatively easy industry to break into. Things you can rent outside of canoes and kayaks in this type of business include fishing equipment and safety items such as lifejackets.
Similar to electric scooters, e-bikes have become more popular, especially in metropolitan areas. These bikes offer the same features that a regular bicycle does, but they also include a motor and battery designed to assist riders if they get tired when on the road.
The e-bike rental industry is also easy to get into, as the bikes themselves are fairly inexpensive. You can also invest in add-on items, such as helmets and other protective wear that can be rented to your customers.
Tool rentals can be particularly lucrative. Many people enjoy making home improvements to their property, but the cost of tools to do so can be excessive. Thus, they turn to tool rentals to minimize the expense of their home improvements.
Investing in a tool rental business can be quite profitable, considering how many people have sought to improve their properties over the past few years. Tools are some of the best things to rent, as they have longevity and can be replaced relatively easily.
Bounce House and Waterslide Rentals
Bounce houses and waterslide rentals are popular for parties and events with children. These types of rentals are generally inexpensive and offer significant returns if the business is managed well.
Most bounce houses and waterslide rentals do particularly well in the spring and summer seasons when the weather is warmer. In the off-seasons, you may want to have other equipment available to rent to ensure steady revenue from your equipment rental business.
AV and Camera Gear Rentals
AV and camera rentals are a great rental industry to get into. People love to rent these types of equipment to capture important moments in their lives, such as weddings and birthday parties. They are also popular with YouTube influencers and producers seeking to create content for social media.
The outlay for a good camera can be above $1,000, making it very expensive for those who expect to use it only a handful of times. However, renting the equipment is much cheaper for customers — and one of the most profitable rentals for those who choose to offer the equipment as part of a rental business strategy.
Getting Started With Your Equipment Rental Business
If you seek to start an equipment rental business, there has never been a better time to do so. Equipment rentals are expected to grow over the next few years, and investing in a business with low barriers to entry can pay off well.
When you’re considering the type of rental company best suited for you, it’s important to look at the profitability as well as the initial capital outlay. Quipli’s equipment rental software offers a great solution for those wanting to succeed in the equipment rental business. Contact us for a free demo today.