Rental Management 101: Introduction to Rental-Module 3: Dealers Need Rental

Module 3: Dealers Need Rental - Part 4

Video Transcription

Video Summary

Rent-to-rent and rent-to-sell are two different approaches to the equipment rental business. Rent-to-rent requires a significant investment and dealers are often hesitant about the financing. Profitability is a key focus in rent-to-rent, as opposed to rent-to-sell where profit is primarily made upon selling the equipment. Building a pipeline of used equipment is important in rent-to-rent. A well-organized rent-to-rent fleet should generate positive cash flow. Time-based depreciation is used in rent-to-rent instead of revenue-based depreciation. Rent-to-rent allows reaching new customers who may not currently use the brand's products. Depreciation is the biggest expense item in the rental business and rental managers need to generate income to offset it.

Keywords

Rent-to-rent

Rent-to-sell

Equipment rental business

Profitability

Used equipment