Rental Management 301: Advanced Rental-Module 2: Fleet Management

Module 2: Fleet Management - Part 3

Video Transcription

Video Summary

The video discusses different strategies for dealing with depreciation in the rental business. One strategy is to have a residual value for the machine, meaning it is not depreciated all the way to zero. This allows for more profit to show up in the rental department. Another strategy is a seven-year straight line depreciation, which can be used if there is long-term confidence in equipment values. A revenue-based depreciation is also mentioned, where depreciation costs are based on rental income. However, it is important to comply with IRS regulations to avoid legal issues. Time-based depreciation is preferred as it recognizes profitability and encourages proactive management of assets.

Keywords

depreciation strategies

residual value

seven-year straight line depreciation

revenue-based depreciation

time-based depreciation