People have now realized the value for a particular product, especially when it is used only once or very rarely. This idea has paved way for a business by offering your products for rent. The concept is simple, ownership of the product or property lies in your hand and you are paid for the usage.
Opportunity in rental business is huge and one can easily start these businesses with very low investment. If want to start your own rental business and looking for some ideas in this profitable industry then read on. Depending on your service, three important things to consider while starting a rental business are:-
- Proper warehousing and storage
- Safe transportation
- Cleanliness or maintenance of the property
The mentioned points are self-explanatory and you will definitely have to keep these in mind to have a successful status in rental business market. Below are some of the profitable low investment rental business ideas which you can start today:-
Also Read – Rent Out Your Car To Companies On Monthly Basis
Here are 10 profitable rental businesses that you can start in 2020
#1. Party rentals
The lifestyle of people has changed and this has greatly created a change in the way they celebrate occasions. Years ago, parties rarely occurred due to high level of planning and controlling it demanded. Nowadays this is made easier with the help of event managers and other related professionals.
So, with that you too have a part in this business. Invest more in part items like slides, bounce houses, unique tables and chairs etc. All these will be your resources to generate income. Give these for rent as a package at a profitable price to event managers or directly to people who use them. Make sure you receive your items the way you provided to them.
You can enhance your business by having additional services like setting up the place and assisting them till the end of the party.
#2. Wedding equipment rentals
Wedding equipment rental business is similar to party rentals business. The items used here are different in size, number and costs. At times you will have to maintain extra number of products to meet the needs of different clients at the same time.
In wedding equipment, the capital needed will be quite high due to the value of the product. For example, you might need a setup of detachable stage for a wedding. The cost of it will definitely be higher than other products. Thus, having ideal or even extra capital is recommended. Have enough of items to leave for rent, and more capital to meet demand if your service becomes popular.
There are two opportunities here, you can either give your things alone for rent or do a dual business of wedding planning too. Doing this business as well as being a wedding planner will cover your investment in a very short period. And one main thing to consider is, the trend. Follow the trend and stick to it to be rated high.
#3. Furniture rentals
This business of renting out furniture is now creating new opportunities for entrepreneurs who desire to have regular revenue. The reason for calling this a regular business is that the product offered for rent comes under essentials for everyday living. Renting business as a whole makes the owner of the product or property earn money on a regular basis, maybe every month. This continuous flow of money enables the owner to even earn excess money after covering the cost of the furniture. The main users of these furniture are,
- People who have migrated from a city to another for short term
- People who do not have own houses
- Hostel owners
- Students who share rooms in private apartments
You will get good profit every month if you have enough of furniture for renting out. Even if your contract with the first user is over, you will find potential users in the market.
#4. Generator rentals
Generator rentals is a very new idea, but the most wanted in the market. Usually huge firms will have their own backup generator to avoid work stoppage in case of a power shut down, but small companies will not have enough capital to procure more number of generators. In such cases, you will be a provider of generators. Apart from companies, event organisers also rent these generators for safety purpose. Finding customers in residential category depends on your marketing skills. You can charge them a monthly rent on the basis of the number of generators you provide. Also, the rent for these generators can vary with the capacity.
#5. Construction equipment rentals
For a construction project, an engineer will require a variety of tools and machines. The budget for the construction might not be sufficient to buy all the necessary construction equipment and also, the ownership of these items is of no use to the owner of the building.
Its use is the only thing needed and that can be achieved by renting. A construction vehicle earns huge profits for a month if rented.
Similarly, there are a number of items in this business where you can boldly invest in. There is 100% assurance for this business to survive for a very long time due to its level of demand and high cost. High cost will definitely be a barrier for anybody to buy these construction items just for one-time use, thus they will decide to rent.
So, choose this business and specialise in any few items since the procurement of all may not be feasible. You can have a prosperous growth if you partner with a civil engineer or any person in the construction field.
#6. Bicycle rentals
Facilitating the public is the core objective of any governmental organisation. Metro stations have now come up with the idea of having bicycles at the station for the public. The concept is simple, own bicycles and approach the metro station organisation.
Signing a contract with them will be your initial process, and the rest will operate like a normal rental business. Bicycles are given for rent at a minimal charge since the frequency of renting is high. This clearly means that you will earn more by small payments frequently.
#7. Clothing rentals
Clothing has always got people’s attention and this attention is even more high when there is a special occasion. Not everybody can afford to buy grand clothes for one-time use. Thus, they tend to rent these for a charge which is definitely far lesser than the cost of the dress.
So, take this business as a medium to earn more by renting your clothes out regularly. All you need to take a leading position in the market is popularity and variety of clothes.
Make sure that they are always in a very good condition and if you find any discrepancy in the quality of the product, you will have to clear them out to sustain your rating in the market. There are a number of categories in this business where you can choose any one and specialise in it.
- Grand clothes for special occasions
- Costumes for events or parties (Similar ones)
- Cartoon costumes
- Vintage collections
The investment you make in this business is generally lesser than any other business. Clothes are not going to raise your capital to a great extent, but the way you present your firm makes the deal. You might have to spend more in promotion than in your actual service.
Apart from these expenses, your maintenance expense is also added. Maintenance implies the work related in converting the used clothes back to new form by dry cleaning, ironing, etc. Approximately, you can charge your customers an amount of Rs 2000 for a very basic design.
#8. Online book rentals
There are people who are very keen in reading all the famous books. But the cost of these books will not be favourable to the reader always. They will be priced very high and these readers might look for a rental place offering these books.
For example, a famous novel cost 5000 which is a very high amount for a reader. But as the owner of this rental business you can rent it out for 10 times charging Rs 500 each time. Your profit here is enormous and that’s how this business works. Have a collection of all expensive and rare books so that you will be the only supplier in your area.
Remember not to procure low cost books, since those books are affordable and will be bought by the customers itself. Maintain a database and work like a library and this will help you to maintain your count of books. It would be great if you do it online because you will have a mix of customers from a variety of places.
#9. Bounce house rentals
This is one among the items for party rental business, but you can try doing this as your main business too. Get bounce houses in large numbers and establish your business targeting kids. There is no particular model for this business since the product which you are offering for rent is of one category.
You will have to invest a part of your money in maintenance or say air filling of these bounce houses. Contacting playschools and event managers can bring more opportunities. You can have different sizes to serve different needs of people who want it.