Updated: Mar 10, 2021
Developers of apartment buildings and other projects often don't own their own construction equipment, including cranes. This is because they only need cranes for a limited time- the length of time it takes to complete their project. Therefore, developers rent their cranes, forklifts, and even smaller equipment from companies or investors that are willing to hand over the money to purchase and store them. This presents a great opportunity for you. Between AI and automation, the world can end up being a very different place decades from now, but it'll still need cranes.
How to Rent Out Construction Equipment
The first step to renting out construction equipment is to determine what specific equipment you'd like to rent out. You can rent out large construction equipment like cranes, bulldozers, or forklifts. You can also rent out smaller equipment like drills, saws, and shovels. Smaller equipment is more affordable to rent out and easier to store; not to mention, generally a better choice for beginning investors.
The next step is to find your equipment. You can find this equipment by contacting a construction company. They will often have leftover equipment they can’t use and are selling, perhaps because they have enough already or just don’t need anymore. Once you find and select your equipment, you need to ask for documentation for the item. This will include the make, model, years it was operated, and any other important information about the piece of equipment.
The next step is to provide power to the object. Most major cities have an electric grid that you can tap into, but if you are in an isolated location, it may be more difficult to provide power to the object. If you are renting out smaller equipment, this shouldn’t be much of a problem. Larger equipment may be more difficult to power in an isolated or rural location, however.
Next Steps to Renting Out Your Equipment
After you have taken care of the power and the paperwork, you need to register the object with a construction contracting company, if possible. In particular, you need to register with the one that is closest to where the object is going to be used.
The next step is to find customers, which is also the easiest part. Once you have a piece of equipment set up to rent, simply contact construction companies and see if they’d be willing to rent your equipment. When you find a customer, give them a quote and the documentation regarding the equipment.
After the customer has decided to rent the object, you'll need to look into logistics. Lastly, you'll need to make sure your equipment is handled safely, and that the customers are following safety regulations.
A Steady Income Stream
With that, you will have a steady income stream from renting out cranes and other construction equipment. If managed competently, this business can continue indefinitely, the caveat being you have to find people interested in renting the tools. In fact, most of your time spent will be finding customers and keeping them satisfied with your inventory. Repeat customers in this business are essential to your long term bottom line. The end result is an outstanding form of passive income.