We're considering buying some equipment, and we know there is a demand for this type of equipment in the area. How would one go about renting out equipment safely? Is there insurance for this to protect against theft? Damage? What kind of contract should there be?
If anyone has renting out their stuff, I'd love to hear some tips and advice. Thanks!
Get a rental contract written up by someone (lawyer) who knows what they are doing. The contract should be all "you, you, you." Meaning one dent, scratch, tear or any thing wrong with the condition of the equipment and you get compensated. You want your money up front along with a hefty deposit. Get this in writing and treat this as a business, which is what it is.
Now as for renting out your stuff, that takes a new mindset. It may be your stuff but nobody is going to treat it as good or take care of it like you will.
I have a friend who had a beach house. He loved the place but got another one. Thought he would just keep the old one (that he loved) as a rental. After every person moved out he was mystified at the dents, scratches, paint chips, tears, bumps and bruises that were left for him to fix. He ended up selling the place.
The mistake many make when renting out things is not getting into the "its a business" mindset and/or cutting friends and family deals. Nope, does not work that way. Same deal for everyone and if it is just amongst friends then it should be easy to put in writing.
Good Luck.
