rental business Archives

Renting property or equipment sounds super appealing. You don’t have to do much, just rent it out and the cash will keep on flowing in, right? Yes, a rental business can be an amazing source of income. But you have to do it right. In this article, we will give you tips on how to start a rental business.

Finding the right rental business idea

Okay, so you know that you want a rental business, but what do you really want to rent? Bikes, cars, boats, maybe even parking spaces? It is an important decision to make, and it should depend on several factors. For example, it is a good idea to rent things that you know about a lot. Such knowledge will not only motivate you but will also allow solving arising problems easier.

Another way is to find a niche that you could fill. Perhaps you know areas where certain rental items is in demand, but there is a lack of supply? It might be your chance for a flourishing business! You might also discover a trend of which other companies are not yet aware. It is very much connected to another important step when setting up a business: market research.

Doing the homework

Doing your homework or conducting market research is essential to start a business successfully and helps avoid making mistakes. Try finding as much information as possible before launching your business. You can both find your business idea this way, but you can also fully develop the one you already have. Consider such questions as what are my clients? What do they want? What about the competition? How do I get funding?

A good idea is to consult professionals. They can answer some of your questions and help with the planning process. You could also try getting some experience working with rental businesses because experience always comes in handy.

Check out the success story of Ronnie Danelian, owner of Legends Cars Rentals, who started with a $10,000 investment and now makes $175,000 a month.

Taking care of your stuff

Good inventory is essential. After all, you have to own items in order to rent them. Do not start too big: rent just a few items at first. If you have too many items right away, it may be difficult to properly stock or manage them. Also, it might turn out that the customers want something different than you are offering. It’s best to start small and buy more items as you move forward in your business.

It might come as a no-brainer but remember to take good care of the items. The longer the equipment or property serves, the more profitable it is. Also, try to make sure it does not break or malfunction in the hands of the customer. Such happenings can affect your image very negatively, so keep up good maintenance.

Start your rental business online

More and more businesses are online. People love being able to access items 24/7 from the comfort of their homes. However, if you want to have a successful online rental business, you must have a functional and good-looking website. Appearance matters a lot since it has to grab the eye of your visitor. One of the most important things in a rental website is the reservation system. If your reservation system works poorly, you can lose your customer forever. Fortunately, it’s quite easy to have such a system. If you use a WordPress site (which we recommend because WordPress is the most popular website builder for a reason), you can buy the plugin Car Rental System. It’s a plugin that can be easily edited and include basically any functions you want.

Another important thing when creating an online rental business is the domain name. Your domain name will distinguish it from many other websites: it must be attractive, unique and recognizable so that people remember it. Once you have a good name, register it on the Domain Name System. Then, choose a hosting provider and build your website.

A happy customer means a happy business

There is a reason why businesses like to say that the customer is always right: happy customers are likely to return, leave good reviews and so generate profits. Of course, you must also ensure your needs, so prepare a good contract that sets down all that is important: the dates, what to do if certain things go wrong and so on. The clearer everything is noted, the easier it will be to handle arguments. Finally, make sure to provide good services. Only then you can start and develop your rental business successfully!

Have you ever wanted to start a limo business? Do you think you know what it takes? Whether you are just curious or seriously considering the idea of running a limo service business, you are in the right place. We will overview the basic things you should know before you start such a business.

Overview of the limo industry

You have to understand the limo business well if you want to start one. So, you should definitely read up on it a lot. But here are some basics.

In this business, you will offer limo services to customers. Customers can include companies that deal with business people; individual people celebrating various occasions; celebrities using limos to get from one place to another. You could be both the limo owner and the chauffeur. Or you can have a whole fleet and hire many chauffeurs.

The limo industry is growing. It experienced steady growth from 2014 to 2019. Of course, it was affected by COVID-19 and experienced a decline in 2020 with the lockdowns. Read this extensive report on the industry in the US by Ibis World to learn more.

In this business, your customer is an affluent person. Often, customers only want limo services for special occasions. So you likely need to have a wide customer base to run a successful business. Corporate clients are considered good clients in this business because they are experienced and know their needs well.

Useful skills to start this business include auto knowledge, driving skills, navigational skills, interpersonal skills, and attention to detail. With auto skills, you could save on maintenance costs; with driving skills, you can be a chauffeur yourself.

Finally, all people want to know how much you can earn. The average hourly price for a limo is $75-150 in the US. It depends on the limo, time of the rent, location, etc. Read more about limo prices here.

What you need to research before you start a limo business

Research is crucial when starting any rental business. A limo business is no exception. You need a good plan and strategy to run a business well. And you need to research to create such a plan. Let’s overlook a few points of what you should find out.

Know about competition. What kind of limousines and limo services can you get in your town? Perhaps no one offers party busses. Maybe there are not enough shuttle or airport services. Of course, if your town is small, it might also not have many prospective customers. If there is no need, it can be very hard.

Do not try to have a little bit of everything. You can’t have what everyone wants because you probably do not have enough money to get so much money. Find a niche. Even a pink limo can be a niche thing that attracts some people. After all, it worked for the successful limo company Heaven on Wheels, which owns the only pink limo in North Texas!

Also, think about your buyers. Imagine them, maybe describe them to yourself. Customers can be companies, individual people, celebrities. Think about what will be your first buyer, as well as second and third buyers. You have to know their problems and provide solutions to their problems.

Another highly important thing to research is insurance. Read on to learn about it.

Expenses when you start a limo business. Insurance and inventory

There are always expenses when you start a business. And a limo business is not the cheapest one to start. Two main expenses are insurance and inventory.

It can take you many months to find good commercial insurance. A good idea is to find an insurance broker who writes insurance policies. Brokers contact major insurance companies which might not talk to you without an agent. Know about insurance requirements in your area, too: there are usually at least minimum insurance requirements.

Then, of course, you must have inventory for your limo rental business. You need to buy limousines unless you plan to partner with people who own them already. According to Truic, one limo can cost you $50,000 to $100,00. Insurance of one vehicle can be between $600 and $1200. So the costs add up quickly. If you have cash, it will make things easier and maybe much cheaper. Loans are quite hard to come by now. You can consider buying used vehicles, which cost less. However, they have more wear and tear, no warranties, etc.

Other costs include storing vehicles, maintenance, paying drivers. So if you have your own place to store limos, you can save quite a chunk of money. Auto skills let you do basic maintenance yourself and also save. Drivers will usually be paid by the hours they have been working.

Overall, according to Starting Your Business, you need $150,000 to start a small limo business with a few vehicles and drivers. However, a large business with a whole fleet can cost $500,000 to start.

One thing you cannot do without: marketing

Marketing is super important. The internet is the best place to market your business. So, you need to have a good website. We recommend building one with WordPress. Here are the best car rental plugins and car rental themes if you decide to go with WordPress. Make sure your website looks good and is SEO-friendly because it will probably be your best form of advertising.

But you have to advertise as much as you can. Facebook is a good place to do that. For example, you can post on various groups. Try to list your business wherever you can. It will not only let others find you but will also help your website rank higher.

Steps to starting a limo business

We discussed what you should consider before starting a limo business. If you decided you want to do it, here is a list of the steps you have to take.

Have a business plan. You need one both to get a loan and to increase your chances of success as it really helps.
Form a legal entity. The main business entities are sole proprietorship, partnership, corporation, and LLC. Find out which one works best for you.
Name your business. A good name will help you a lot. Read more about finding a good business name here.
Find financing. If you do not have lots of cash yourself, you need financing. You need to have good credit and invest at least 15% yourself for a loan.
Register your business for taxes. You need to apply for EIN (Employer Identification Number) to register your business.
Open a business account. A business account will help you protect your personal assets.
Get the permits and the licenses. If you do not get the necessary permits, you will get a big fine or might even be shut down. So read up on regulations in your area to avoid it.
Get insurance. Insurance will protect your business if a covered loss occurs. You can start with General Liability Insurance if you are unsure with which to go.
Set up accounting. You need to record your expenses and income to track your performance.
Hire employees. As your business grows, you will need to hire employees. That means not only paying wages but also compensation insurance and other expenses.
Create your business website. As we mentioned before, a website is critical for marketing.

We hope that now you know more about starting a limo business. Maybe you need help with your website, rental business, or just want a place to post your ad without being ripped off in commissions? Then contact us now!

How to Start Your Own Rental Business: Top Tips