Do you have an extra car taking up space in your garage, unused tools cluttering your basement, or a closet overflowing with clothes you never wear? If so, these items could be foundational assets for a rental business.
A rental business can be flexible and profitable, offering environmental benefits, passive income, and sizable profit margins.
Here are the benefits of starting a rental business and profitable ideas to help get you started.
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Benefits of rental businesses
Starting a rental business offers a relatively straightforward way for entrepreneurs to earn money. Here’s an overview of the benefits of the rental business model:
- Rental businesses can be profitable. A rental business can have high start-up costs but relatively low recurring expenses. Once you’ve paid off your initial investment, you can pocket most of the money you earn from rental fees.
- Rental businesses support sustainability. Renting items can reduce the need for consumers to buy products they may only use once or twice, decreasing the number of new items in circulation and keeping them out of landfills.
- Rental businesses meet consumer needs. Because renting items cost less than buying them, rental service businesses appeal to price-conscious consumers.
- You can choose your rental market. You don’t need to be an industry expert to provide quality rental services, so you can choose a rental business type based on potential profits, local market needs, or even a specific area of interest.
📚Read more: Sustainable Business: What Is It and Why It’s Important in 2024
20 best rental business ideas
- Car rental business
- Dumpster rental business
- RV rental business
- Bicycle rental business
- Party rental business
- Snow sports equipment rental business
- Trailer rental business
- Tool rental business
- Office space rental business
- Vacation rental business
- Construction equipment rental business
- House rental business
- Storage rental business
- Motorcycle rental business
- Clothing rental business
- Boat rental businesses
- Tech rental business
- Furniture rental business
- Sign rental business
- Medical equipment rental business
Different rental business types have different start-up, storage, and maintenance costs and requirements. Note that in some cases, you may need a business license or permit to operate. Here’s an overview of the best rental business ideas to help you weigh your options:
1. Car rental business
Car rental businesses are particularly popular in travel destinations and areas where car ownership is less common. If you have the start-up capital to invest in a fleet of vehicles, a storage location, and an insurance policy, consider starting a car rental business in your region.
Start small by renting out your own vehicle (if you have one) on an app like Turo, and invest the proceeds in scaling your business. You may consider franchising with a national car rental brand like Enterprise, or set out on your own to build a local car rental business from scratch.
2. Dumpster rental business
Homeowners rent dumpsters for large cleanout projects or moves, and construction companies frequently keep them on construction sites. Start your own dumpster rental company and market your services to construction companies, cleaning crews, and individual consumers. For a full-service model, include delivery, pickup, and waste disposal.
3. RV rental business
Start your own business renting camper vans, travel trailers, and other recreational vehicles. RV rental services are particularly popular near camping, fishing, and hunting destinations.
4. Bicycle rental business
Bicycle rentals are popular in cities and locations with access to bike trails and paths. Start your own bike rental business to help customers get around, work out, or just experience the simple joy of riding a bike.
5. Party rental business
Party rentals are a profitable and versatile rental business idea. Start a full-service business that provides lighting, decorations, catering equipment, seating, linens, and tableware. You can also offer tents and shelters for outdoor events or a bounce house rental business for kid parties.
📚Read more: How One Entrepreneur Got Her Rental Cakes Into 1,000 Grocery Stores
6. Snow sports equipment rental business
Many ski resorts offer on-site ski and snowboard rentals but typically charge a premium for the convenience and may not offer specialty gear and sizing. Start a rental business near a popular ski destination and provide a wider selection of goods at lower prices. You might also rent mountain bikes or backpacking equipment to generate income in the off-season.
7. Trailer rental business
Many people rent trailers for personal moves, while businesses use them to transport goods or equipment. Start a stand-alone trailer rental business or offer truck and trailer combos for clients who need both.
8. Tool rental business
DIY home-improvement enthusiasts are often motivated by thrift—but purchasing expensive power tools can quickly erode their savings. Support DIYers by starting your own tool rental business. Rent specialty tools like tile saws, drum sanders, and post drivers as well as general-purpose tools like jigsaws, levels, and wrench sets.
9. Office space rental business
Office rental businesses provide workspace for companies and individuals. Rent out commercial property to a single tenant or lease individual offices or co-working spaces to self-employed professionals like contract writers and real estate agents.
10. Vacation rental business
If you own property, offer short-term leases to vacationing individuals or families. Vacation rentals in major cities can also be popular with business travelers or traveling professionals like nurses, doctors, and physical therapists. Charge a premium for properties in important business areas or near popular vacation destinations.
11. Construction equipment rental business
Construction rental equipment is in demand in growing markets amid new housing, commercial development, and infrastructure development. Start your own construction equipment rentals business and provide items like backhoes, bulldozers, dump trucks, and scaffolding to project teams.
12. House rental business
If you own an extra property, you can make money by renting it out. If you have access to capital and live in a city where rental costs are high relative to purchase costs, you can buy additional property to expand your rental portfolio.
13. Storage rental business
Leasing out storage space is an ideal rental business idea to earn passive income. You won’t be responsible for dropping off, picking up, or maintaining equipment. Instead, you’ll purchase or build a storage facility, provide security and climate control, and collect monthly rental fees on storage units.
📚Read more: 29 Passive Income Ideas To Increase Your Earnings in 2024
14. Motorcycle rental business
Rent motorcycles, scooters, and mopeds to allow the casual motorcycle enthusiast to experience an occasional thrill and provide an efficient means of transportation for visitors to your city.
15. Clothing rental business
Formalwear, costumes, and even fine jewelry are all popular rental items. Because clothing is relatively easy to transport, set up an online store and ship items to customers across the country.
📚Read more: Sustainable Retail: 15 Ways to Be More Sustainable + Examples
16. Boat rental businesses
If you’re near a body of water, start a pontoon, canoe, and kayak rental business. You might also expand into a fishing rental service and provide gear like fishing rods, nets, and tackle.
17. Tech rental business
Start an AV equipment rental business to support events like conferences and parties or a camera rental business for travelers or amateur filmmakers. These items are typically expensive and hard to transport, making renting them a profitable business idea.
18. Furniture rental business
Furniture rental is popular with party planners and business owners. Real estate agents also frequently rent staging furniture for display and model homes in new housing developments.
19. Sign rental business
Banner and lawn sign rentals help businesses and individuals make an impact without spending a fortune. Offer signs promoting grand openings and sales or celebratory signs for birthdays, weddings, and graduations.
20. Medical equipment rental business
Rent medical equipment like hospital beds, wheelchairs, or oxygen tanks to individuals recovering from surgery or dealing with a severe or chronic illness. Baby equipment rental businesses—which provide items like cribs, strollers, or car seats—can also be a profitable option.
Rental business ideas FAQ
What is the most profitable thing to rent out?
The most profitable rental business ideas vary from market to market, but these five rental business types tend to be popular:
- Party rental businesses
- Storage rental businesses
- Trailer rental businesses
- Tool rental businesses
- Dumpster rental businesses
Is a rental business profitable?
As with any business, the answer is yes, if properly managed. Successful rental businesses can see profit margins as high as 50%.
Why should you consider starting a rental business?
Rental businesses can meet a common consumer need and earn you money in the process. They can also be flexible and have relatively low recurring costs.
