Are you looking to grow your passive income portfolio? Look no further than these awesome rental business ideas anyone can use to start making money.
Whether you're looking to make a few hundred dollars each month or over 10k a month – give these rental business ideas a try to grow your income streams.
In this post, I'll explore some of the best rental business ideas, the benefits of starting a rental business, how to expand your rental business, and more. Let's get started!
How to Start a Profitable Rental Business
As with any business, you'll need to have a plan and strategy to get started. Whether you choose to start an equipment rental business or a home decor rental business – you need a plan.
To start a rental business, first outline your ideas. For example, if you're planning on starting a campsite rental business try to determine where your campsite will be located, how many campsites there will be, and how much you will charge for each night. You don't need to have your plans finalized, but this will make some of the next steps quicker.
After putting your ideas together, do some research to understand if your business is viable. Check out the rental industry to determine if your rates would be profitable. Try to determine exactly what you will rent.
Next, you'll need to craft a true business plan. This should contain many pieces of your business from the marketing and finances to the day-to-day operations.
Once you've completed your business plan, it's time to name your business and raise capital (optional) for your venture. The amount of money you'll need to get started varies depending on the type of business. For example, a tool rental business might need more money than a book rental business.
Next, register your business with state and local officials and obtain any permits or licenses you may need.
Lastly, it's time to open a business bank account and start your business.
Best Rental Business Ideas
Below are some of my favorite rental business ideas anyone can start with a little cash and some hard work.
Real Estate Rental
Real estate rental is likely one of the most popular forms of rentals on the market. There are a few types of property rentals that come to mind.
One of the most common types of real estate renting is renting out a home. This could be your primary home, a vacation rental, or other type of home like a duplex. When you rent any property, you'll want to be sure you have a contract that the renter signs.
Starting an office space rental business is another common type of real estate rental business you might consider. Office space rental can be more costly than other rental businesses but it is still worth perusing.
Conference Room Rental
If you don't have enough offices to rent, you might consider starting a conference room rental business. This means you'll need to organize your rooms to have enough seating and video conferencing capabilities for those needing to talk to colleagues.
Renting out vehicles can be a great way to make money if you have the cash available to buy them. To start a car rental business you'll need to have the cash to purchase various cars and vehicles.
One thing I like about a car rental business is the ability to start somewhat small and grow. It's possible to rent out just one car through various platforms on a day to day basis.
Storage Unit Rental
Starting a storage unit rental business is an excellent way to make passive income each month. With this rental business idea you'll need to either purchase or build storage units to place on your property and rent them out for cash each month.
The good news about this business is that you should be capable of taking out a loan to start your venture.
Depending on the size and location of the units, it's possible to rent each unit for over $100 each month. By doing some quick math, just 20 units would net you over $2,000 each month. Storage rental can be a simple way to grow your income each month.
When starting a storage rental business be sure to consider the maintenance costs of your facility. If you don't want to deal with maintenance, you might research mobile storage units.
If you have some extra space in your garage, consider renting it out for some extra cash each month. This has many of the same benefits as a storage unit rental business without all of the costs. The only downside is that you'll need to give your renters access to the garage and you might only have one person that can rent at a time.
Exercise Equipment Rental
Renting out exercise equipment can be a great option for those who are passionate about health and fitness. While the startup costs can be somewhat high, it's still a worthwhile investment.
Outdoor Equipment Rental
There are many pieces of outdoor equipment that makes for the perfect rental business.
Starting an equipment rental business will require some capital upfront because of how many potential pieces there are to rent. However – because there are so many pieces, it can be one of the more lucrative rental businesses.
An equipment rental business comes with attractive margins and a simple startup process.
Many equipment rental companies will purchase a small set of equipment to get started before expanding to a more diverse offering of more expensive equipment.
Sports rental can be more broad than you think. I would consider hunting equipment rental, camp equipment rental, and other outdoor events rentals sports rental.
Your business might rent out hockey equipment, lacrosse sticks, or hunting gear. Because some of these items can be rather expensive, it makes sense to rent them.
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Dumpster Rental Business
If you're not afraid of getting a little dirty, a dumpster rental business could be a good option to make a full time income from your business.
Dumpster rentals can be extremely lucrative for one reason – nobody wants to do it! This is your opportunity to become a business owner with the potential to make a tremendous income.
Starting a furniture rental business is another great rental business idea that many entrepreneurs can start. Because there are so many types of furniture you can rent – it's easy to make money. Between bedroom furniture, baby furniture, office furniture, and kitchen and living room furniture, your options are endless.
When you rent furniture be sure to arrange the move so that it does not get damaged. It you move the furniture for your renter, you might charge an additional fee.
Related: Make Money Furniture Flipping
If you enjoy fashion and clothing, starting a clothing rental business can be a fun way to help others enjoy fashion in a similar way.
The only downside is that because there are many different fashion styles and body types, you'll be forced to carry a large inventory to satisfy your customers.
When you rent clothes, be sure to take note of any stains or discoloration that could occur before it is returned.
Starting a wedding rental business can be one of the most profitable rental business ideas to start because of it's extremely high margins.
Another benefit of a wedding rental business – you won't need hundreds of thousands fo dollars to get started. Depending on the size of your business, it's possible tog et started for less than $20,000.
There are many pieces of items that can be rented like catering equipment, decor, table, chairs, and much more.
As with any equipment rental – you'll want to have a process in place before and after the rental is returned to ensure no damage occurred.
Tech rental can be an easy way to earn some extra money each month and is a great option for college students looking to make passive income. Renting out items like computers, televisions, mobile phones, and other devices is a great way to make money.
These items can be purchased for relatively cheap and rented for a quick profit.
While renting bikes is not the sexiest business idea, it can be quite profitable. Starting a bike rental business will require you to purchase bicycles to rent out to customers for a fee. These bikes can be standard bikes or electric bikes – whichever satisfies your clientele.
Beach Chair Rental
Renting beach chairs is not one of the most popular rental business ideas but if you live on a beach – it's a great way to make some extra cash.
The main downside of a beach chair rental business is that it can be an extremely seasonal business. If the weather is colder, you might not be capable of renting any chairs that day.
When you rent beach chairs you can choose to rent by the day or per hour, or both! If you choose to rent by the hour, this can bring in more money as long as you have enough customers to rent the entire day.
If you live on the water, starting a boat rental business can be an excellent way to build your passive income streams.
There are several types of boats you might consider renting from party boats to pontoons. Each type of boat has benefits and drawbacks to renting.
Boat rentals can be somewhat risky given the fact that many renters do not have the knowledge of renting a boat. Therefore you'll need to have quality insurance in the case something goes wrong.
Party Decor Rental
Parties are celebrated year round making it one of the best rental businesses you can start. And with low start-up costs, a party rental business is ideal for anyone just getting started.
A party supplies rental business is great for anyone who isn't scared to work a few nights and weekends. Because most parties occur outside of normal working hours, you'll need to be comfortable working these hours.
There is a plethora of rental options when it comes party rentals. Everything from table clothes to bounce houses or other party supplies can be rented to make money.
Photo Booth Rental
Photo booths have become all the rage and are a great product to rent because of the high profit margins. The downside to this type of rental business is that photo booths can be somewhat costly to purchase. It can cost between $1,500 to $9,000 to purchase a photo booth but they can be rented for anywhere from $700 to $1,200 per event.
Golf Cart Rental
There are several use cases for golf car rental businesses but the main use is for vacation rentals. By renting out golf carts to travelers you can build a solid stream of passive income for you and your family.
Golf carts can be somewhat expensive to purchase, however. So you'll need to have some cash upfront to get started. Expect to spend a few thousand dollars on each golf cart. Rental rates for golf carts vary but it's possible to charge $40 or $50 per day.
While animal rentals aren't as common – they can still be a way to make money. Perhaps your dog for a family photo? It's possible!
The Risks of Starting a Rental Business
As with any business, there are certain risks that come with the venture. For rental businesses this usually means the item you rented is returned broken, or never returns at all.
If you want to limit the risk of your rental business, be sure to obtain proper identification of the person renting your equipment before handing it over. Depending on the size of the item, you might want to dig further and check their credit to determine if they are trustworthy for your items.
By vetting your renters you'll gain more control of your property and decrease the likelihood that it never gets returned.
Another method many renters choose to utilize is assessing late fees or broken item fees to ensure renters take proper care of your property while they keep it. Before starting your rental business you'll want to ensure you have setup well-defined processes on how to limit these risks.
Related: 53 Best Things to Rent
How to Expand Your Rental Business
Expanding a rental business is all about inventory. The more inventory you have, the more you can rent out and the more money you will make.
For example, if you have an office equipment rental business the more equipment you have to rent – the more money you can make. Depending on the rental market you are in – purchasing more inventory might be your best expansion method.
Another main method to expanding your business is by taking a look at other businesses to find areas for improvement. Perhaps you don't have the best equipment or you could be undercharging your customers for the same equipment. Many businesses forget to check the competition to find areas for improvement.
If you're a new business looking to grow, it might be wise to spend some capital marketing your business to attract potential customers. Most small business owners become overwhelmed with the idea of marketing but it can be easier than you think. Many small businesses will turn to interns and freelancers to help them optimize their marketing efforts.
How Much Money Can You Make with a Rental Business?
One of the most frequently asked questions when it comes to starting any business is how much money can you really make. And it's a tough question to answer. There is no definitive value to how much money a rental business can make, but there are some examples of how much they make.
With a rental business it's possible to make over 6 figures each year depending on the type of business, your location, and the inventory you have.
For those just getting started, you can expect to make less money at the beginning of your journey compared to those with years of experience. For beginners, it's possible to make $1,000 a month with your rental business.
Final Thoughts on the Best Rental Business Ideas
Starting a rental business is an excellent option to grow your passive income streams and boost your earnings.
Whether you're looking to quit your 9-to-5 or just make some extra money each month, starting rental businesses can be a great way to reach your goals.
By starting one of the rental business ideas above you're sure to be on the path to profitability in no time. The good news about a rental business is that when compared to other business ideas – this will require less work and it has a proven business model!
There are likely to be a few other rental business ideas out there I haven't heard of. I'd love to hear them!
Have you started a rental business? Comment your experience below!