Implement & Attachment Rentals

[TheShadyKubota]

Morning All -

In my area (Winnipeg, Manitoba) we don't have the best access to any attachment rentals unless you drive 2-3 hours minimum round trip which doesn't make it too feasible on weekend or one day rentals.

Has anyone decided to start purchasing some attachments and begin a rental company for them? This would not only provide access to attachments I need but others surrounding me as well. If you've done this or someone you know has reach out, would like to hear more about their experiences.

Typical attachments I'd suggest to have on the fleet would be:
- 48" or 54" Roto Tiller
- 54" or 60" Flail Mower
- 48" or 54" Rotary Brush Hog
- Wood Chipper (PTO)
- Over Seeder
- Broadcast Spreader
- Box Blade 54" or 60"
- Landscape Rake 54" or 60"
- Land Plane 48" or 54"

Hopefully someone has and if not.. I will be the guinea pig.

 

[Bmyers]

I don't know what your civil liability is in Canada if someone misuses a device.

My guess, you will obviously form a company to protect your personal assets (based on US law and this varies State to State). You will want insurance to cover the equipment from theft, damage, and misuse.

An extreme example would be the wood chipper, what happens if the person you rent it to allows the neighbor kid to help remove brush and that kid gets his arm pulled into the chipper? Realizing you will have your rental agreement to try to protect you, but you will want good insurance coverage because you will be listed in the suit by the parents.

None of this is insurmountable, but just make sure you get good guidance from a local lawyer and insurance rep to help you set it up correctly.

You sound like you have hit on a market need in your area and good luck.

 

[Pawnee]

In Ontario it seems the liability is with the renter; you can rent almost anything. I've operated small excavators with 2 minutes of training near hydro wires and steep banks.
I haven't yet found a tiller for rent though and would be interested.

 

[rc51stierhoff]

I have not done what you are asking but I have thought about it and have used and asked lots of questions of friendly folks at rental places. (When I could not make it work on paper I stopped)

If you are thinking about starting one, I’d recommend you talk to whoever does the books at a successful rental place…I think about the rental fee scheme/amortization, versus likely frequency of use and also sale price of the equipment…oh and of course maintenance of the stuff. The reason I say that is whenever I have tried to rent or buy something from a rental place (stuff is usually always for sale), when I try to do some sipherin’ things start to go sideways…anyways I think it’s more an accounting / tax schedule thing that needs to be understood. And then if you just want some pocket cash to help pay for your toys, how you price and who you let borrow for a fee is something entirely different if not a real business IMO. Consider a tiller…if you buy a new tiller for personal use for 3k, how many days are you going to use it over let’s say 10 years? (In general for an investment you should want it paid back quicker…so I think you have to decide it’s an asset(assets are types of investment) or a investment or personal use/hobby. (Most of use use once per season maybe twice if after grow season in fall). So then you can figure out your price for use…that’s for yourself with no real tax benefit. It’s pricey for personal use only right…so are you going to rent that to someone for same price (as your personal use fee/schedule) or should you charge them more (or would you charge them less than what you paid yourself?)after you made the investment and they may damage your equipment? What price would that be and who would pay that much? A lot of the implements are seasonal and or weather dependant, so that is a factor in the frequency of potential renters…the further north you go the less likely volume I would suspect do to the weather and length of season. I’ve thought about it myself but I get sideways when I lose focus on the opportunity (could I rent enough times for a price that pays the bank note year round?) Maybe someone on here does it and have it figured out and will give some better thoughts.

To me it might be better to do service on the side - for hire service might be a better way to supplement the toys you personally want, but for me that’s a whole other set of questions and answers (analysis paralysis)I can’t get past on the customer / liability side…again I lose focus of the opportunity though. I don’t know I helped or not.

 

[mikester]

I've thought about it, the need to have a truck for deliveries and pick ups, skyrocketing insurance costs, repairing equipment broken by dumbasses and chasing people for money is a deterrent.

Commercial insurance in Canada, especially when you get a truck for deliveries, is mental. Expect $30-50K just in insurance premiums before you even turn a key. You will also want to incorporate to mitigate personal liablity. Now you will be working to support your lawyers and accountants as well as the insurance companies. And don't forget CRA wants their cut. You will need employees. I can't find people willing to work for $20/hour which is closer to $30/hour by the time you pay WCB, CPP, blah blah bah. Canada does not like small businesses and will happily punish you with excessive paperwork to justify the existence of auditors and bureaucrats working on covid time - even pre-pandemic.

If your spouse is a civil servant with a gold plated pension and a six figure salary needing business loss deductions then go for it. If your spouse has a real job you might want to consider relocating to a more "small business friendly" country. Don't believe the politicians when they say they are offering you programs to help your business. Those programs are strictly for friends and family and large corporation welfare.

This might sound cynical but it's reality...getting a business going today is just like millennial trying to buying a first house these days in the GTA. Wishful thinking.

 

[Pawnee]

^ Sad but true Mike.

 

[TheShadyKubota]

In Ontario it seems the liability is with the renter; you can rent almost anything. I've operated small excavators with 2 minutes of training near hydro wires and steep banks.
I haven't yet found a tiller for rent though and would be interested.

Yeah That's where I'm at too.. I rented a 18Ton Excavator to dig my basement with nothing more than a swipe of the Visa and a signature on a waiver.

 

[TheShadyKubota]

@mikester valid points - however if I don't then someone else will and it may fail, but if you don't try then what's the fault in that. Thanks all for your comments!

 

[RCW]

All bring up good points regarding starting the business.

Your proposed fleet of implements will be geared for your subcompact BX-sized machine. Rightfully so.

Some may work a size or two larger, e.g., a B- or LX-series Kubota, but not much bigger.

Not familiar with the Winnipeg, MB area. Is there enough smaller tractor owners in your market-area to make the venture feasible?

My area is very rural. While decreasing quickly, lot of dairy farms.

Still, there are many folks with small tractors of this size. Local rental place did carry some implements, but has since changed hands. No longer offered, to my knowledge, in favor of larger equipment (mini-ex's, large chippers, light plants, etc.).

 

[rc51stierhoff]

It would be nice if dealerships offered implements that could be rented and sold at a reduced price for the rented/used ones.

 

[Elliott in GA]

Presuming that you have local equipment dealers, you might want to approach one or more of them with the proposition of you purchasing the equipment for them to rent out. It would reduce your cost of entry (no - physical location, storage yard, office, delivery truck, repair facility and etc.), and it would reduce the risk for dealership to almost nothing.

If no dealership will make a deal with you, you can probably safely conclude it is not economically sound.