Buying and selling items is the foundation of many businesses. But what about the items that people don’t need on a continual basis? In these instances, both consumers and business owners can benefit from a more practical rental business model. Read on for ideas in this profitable niche.
Why You Should Start a Rentals Business
A rental business is one where the company owns an asset or inventory that it rents out to consumers for a one-time or daily fee. This business model is beneficial because the company doesn’t need to constantly replenish its supply, and it’s often less expensive for consumers to get the items they need.
The Rental Businesses Industry
The rental market for various items is thriving in 2022. People are realizing the cost savings, practicality, and sustainability of only buying the items they need and renting the rest. Technology has also opened up new ways of connecting businesses and property owners with potential consumers and renters.
- READ MORE: Small Business Ideas for Beginners
Profitable Rental Business Ideas
If the idea of a rental service business appeals to you, there are several niches to consider. Here are the best rental business ideas for aspiring entrepreneurs.
#1 Party Rental Business
Party rentals include various supplies like tables, chairs, decor, and extras like bounce houses. You can even focus on niche party rental business ideas like those catering just to weddings or kids’ birthday parties.
#2 Car Rental Business
Car rentals are especially popular around vacation destinations or large cities where people may not have their own vehicles. You need a decent inventory of vehicles, places to store them, and lots of insurance.
#3 Equipment Rental Business
Equipment rental may include anything from construction machinery to specialized home improvement tools. Some target consumers, while others focus on a specific industry.
#4 Office Space Rental Business
If you have a commercial building, consider renting space to businesses. You could offer long-term leases to entire businesses or just provide desks or memberships on a short-term basis, like a coworking space.
#5 Clothing Rental Business
Clothing rentals are ideal for clothing that only needs to be worn for a short period. For example, you may provide tuxedos or special occasion dresses. Kids clothing may also be popular since items are outgrown so quickly.
#6 Truck Rental Business
Trucks are essential for moving, towing, or hauling large items. Offer hourly or daily rates for those that need some extra space or hauling capacity.
#7 Storage Rental Business
Storage space is another popular rental service. You just need some garages or shipping containers that people can easily access.
#8 Bike Rental Business
Bicycle rentals are popular in vacation destinations and large cities. To offer bike rentals, you just need a decent inventory, storage space, and liability coverage.
#9 Canoe and Kayak Rentals
Canoes and kayaks are popular around rivers and other bodies of water. Offer hourly rates in a spot where people can easily get in and out of the water.
#10 Camera Rental Business
Professional camera equipment is often used in company photo shoots or special events. In addition to cameras, you may also provide lenses and accessories to enhance the experience.
#11 Costume Rental Business
Costumes are usually just worn at Halloween and special events. So stock up on options and let people save money on their costumes instead of buying.
#12 Camping Equipment
For those who want to camp without investing in tons of gear, offer tents, coolers, and cooking supplies for rent. A camp equipment rental business is ideal for those who can set up near popular outdoor destinations.
#13 Conference Room Rental
If you have a commercial building without entire offices, you could just offer single rooms for businesses to use for meetings. This can be especially important now since so many businesses operate without physical office space.
#14 Vacation Rental
If you have a home or condo in a popular vacation destination, rent it out on a short-term basis. Sites like Airbnb and VRBO specialize in this type of transaction.
#15 Lawn Sign Rentals
Lawn signs are often used for marketing and special events. They can also be easily recycled and re-printed, making them available for a rental model.
#16 Furniture Rental
Some people need furniture on a short-term basis for parties or vacations. This may also be popular with real estate agents who need to stage empty homes for sale.
#17 Baby Equipment
Baby furniture, toys, and accessories are often used for a short period. So you can provide these items to parents looking to save money.
#18 Dumpster Rental
Dumpsters are helpful during renovation projects and cleanouts. Offer to drop off large receptacles and then pick them up once they’re full.
#19 Medical Supply Rental Business
Lots of medical supplies like crutches, wheelchairs, and hospital beds are just used temporarily. Offer these to patients who are recovering from various ailments.
#20 Catering Equipment
Catering equipment like serving trays and mobile cooking gear can be incredibly useful for special events.
#21 Campsite Rental
If you have lots of outdoor space, offer it for campers or those in recreational vehicles.
#22 Boat Rentals
Those along a body of water can rent boats for those looking to take an outing on the water. Some boat rental businesses specialize in specific types of vessels, like fishing boats, while others offer a variety.
#23 Tool Rental
Tool rentals can appeal to contractors or homeowners who need specialized items for specific projects. Even basic tools may be useful for homeowners who don’t have their own.
#24 Truck Rental and Construction Equipment
You could also specialize in larger items like construction equipment to serve a B2B niche. Expensive equipment can present a large investment upfront, but this is also one of the most profitable rental industries.
#25 Fishing Equipment
Another water-based business, a fishing rental service may specialize in fishing poles and other equipment specifically for fishers.
#26 RV Rental Business
RV rentals are popular with vacationers who don’t want to purchase their own recreational vehicles. Rental companies in this niche need to consider the same issues as those that rent other vehicles.
#27 Moving Gear Rental
Moving gear like bins and furniture pads is often just needed for short periods. Offer these items in conjunction with moving trucks or storage, if you have the option.
#28 Home Decor Rental
Some homeowners or realtors may need home decor for short periods just to stage homes for sale. You can offer everything from rugs to artwork and plants.
#29 Landscaping Supply Rental Business
Landscaping supplies like lawn aerators and wheelbarrows tend to be especially popular in spring and fall. So this can be a popular seasonal business.
#30 Home Rentals
Those who own residential properties may opt to rent their space on a long-term basis instead of focusing on vacation rentals.
#31 Room Rentals
Even if you don’t own an extra property, some people may be willing to rent just a room. You can rent space short-term for vacationers or long-term for college students or others who just need a basic place to stay.
- READ MORE: 16 Best Rental Listing Sites for Landlords and Property Managers
#32 Tech Rental Business
Some people may need computers, printers, gaming consoles, or mobile devices for short projects or while traveling. You may start your own business allowing users to take devices with them, or you may set up a dedicated computer and printer lab that people can visit for an hourly rate. For example, an office equipment rental business may be especially ideal in areas with lots of remote working professionals.
#33 Portable Restroom Rentals
Portable restrooms are popular for outdoor events and construction sites. In addition to the actual restrooms, you also need pumping and cleaning equipment to sanitize them, along with trucks to deliver them to sites.
#34 HVAC Rental
Portable heaters and AC equipment are useful for special events and work sites. In addition to providing the equipment, you may offer to install or drop off equipment to provide extra value with your rental services.
#35 Lighting Rental
Lighting equipment is another popular idea for renting business ideas. You may specialize in uplighting for special events or spotlights for construction sites that are not set up with their own electricity yet.
#36 Holiday Decor Rentals
Holiday decor is only used for a few weeks each year. So offer large items like inflatables, wreaths, and trees for a seasonal fee. You can specialize in several holidays throughout the year, though this idea is likely to be most popular during Christmas and Halloween.
#37 Hunting Equipment Rental
If you live near popular hunting destinations, offer equipment like apparel, decoys, and blinds to visitors. This can be ideal in areas that people visit from out of town, since they may not want to haul their own equipment.
- READ MORE: Booth Rental Guide for Salon Owner and Stylists
Start Your Rental Business Idea Today
There are rental business ideas for nearly every niche. If you’re interested in starting a profitable business in the rental industry, find your ideal match in the list above and then invest in the items needed to provide quality rental services to your community.
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More in: Develop an IdeaComment ▼
What rental businesses make the most money? ›
- Party rental business. ...
- Wedding & event rentals. ...
- Camera & lens rentals. ...
- Bike rental store. ...
- E-bike rentals. ...
- Ski & snowboard rentals. ...
- Baby equipment rentals. ...
- Canoe & kayak rentals.
- Bikes. ...
- Party equipment and inflatables. ...
- Camping and hiking equipment. ...
- Tools and Construction Equipment. ...
- Suits and Wedding Dresses. ...
- Water sports equipment. ...
- Winter sports equipment. ...
- Toys and baby equipment.
- Air conditioning renting business.
- Apartment renting business.
- Houseboat rental.
- Car rental business.
- Furniture leasing and renting for babies.
- Coffee machine renting.
- Conference and hotel room booking.
- Renting on office equipment.
The Most Rented Construction Equipment
- Scaffolding Rental. ...
- Forklift Rental. ...
- Trencher Rental. ...
- Lift Rental. ...
- Scissor Lift Rental. ...
- Auger Rental. ...
- Mini-Excavator Rental. ...
- Excavator Rental.
The most expensive rental market in the US remains to be New York. The average monthly rent for a one-bedroom is roughly $3,260. This is about a $500 decrease from 2021, however as demand continues to increase prices are likely to follow.What is the highest paying rent? ›
New York City logged the highest rent in the U.S. in August 2022.What is the 2% rule rental? ›
What is the 2 per cent rule? The 2 per cent rule, also stylised as "2% rule", is a rule of thumb that is used as a screening guideline for determining how much you should pay to buy a rental property. The main idea is to only buy properties that produce monthly rent of at least 2 per cent of the purchase price.What is the 1% rule for rental? ›
The 1% rule of real estate investing measures the price of the investment property against the gross income it will generate. For a potential investment to pass the 1% rule, its monthly rent must be equal to or no less than 1% of the purchase price.How can I attract more renters? ›
- Write a Thorough Listing. ...
- Schedule Individual Property Showings. ...
- Consider Timing. ...
- Have All Relevant Paperwork Handy. ...
- Create Handouts. ...
- Know All Area Amenities. ...
- Decide on Tenant Criteria Beforehand. ...
- Keep a Flexible Schedule.
Yes, you can get rich as a landlord. You can go broke, too. And in between those two extremes, you can find yourself dealing with a bunch of problems like leaking roofs, non-paying tenants, and economic downturns. The risks of building wealth with real estate are substantial.
Will rentals make you rich? ›
The truth of the matter is this – one rental property isn't going to make you rich. If you get an average of $100 per door per month in cashflow from a rental property, investing in a duplex will only net you $2,400 a year. Three of these net you $7,200 a year.What are the 10 business ideas? ›
- Handyman. Image Source. ...
- Woodworker. ...
- Online Dating Consultant. ...
- Sewing and Alteration Specialist. ...
- Freelance Developer. ...
- Personal Trainer. ...
- Freelance Graphic Designer. ...
- Life/ Career Coach.
This is probably the most common type of residential lease, and guarantees your tenancy (and your monthly rental cost) for a set period of time—for example, six months, a year, or two years.
Crane and backhoe heavy equipment operators typically make the most money. The national average salary for all heavy equipment operators is around $35,000 to $40,000 in a year. This equals about $15 to $20 an hour for an hourly wage.What is the most sold tool brand? ›
|Rank||Power Tool Brand||Revenue (USD billions)|
|3||Black & Decker||11.41|
Rental rates also tend to be higher during the summer months. The lowest rental rates are found during the winter months—October through April—with demand and prices reaching their nadir between January and March. An apartment search should begin in the middle of the month prior to the target move month.Who are most likely to rent? ›
Renter Demographics. In the under-35 age group, 65% of American households are rented. Meanwhile, in the 65+ age group (senior citizens), 79.3% own a home. The median age of homebuyers is 47 years old, while the median age of renters is 38 years old.Is rental property a good investment in 2022? ›
2022 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.Are most landlords rich? ›
Business owners and landlords (about 15% of U.S. households), tend to be among the wealthiest.Where is rent cheapest 2022? ›
Overall, the city with the cheapest average rent in the U.S. was listed as Wichita, Kansas, with a population of nearly 400,000. The average rent for all apartment sizes in Wichita is just $598 a month, the report said — adding that no other city averages under $700.
What state has the cheapest rent 2022? ›
Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.
The 50% rule in real estate says that investors should expect a property's operating expenses to be roughly 50% of its gross income. This is useful for estimating potential cash flow from a rental property, but it's not always foolproof.What is a good profit on rental property? ›
How much profit can you generate from a rental property? The exact amount of profit a rental property generates depends on a multitude of factors, most notably your expenses. While any profit is good, you should aim for making at least $100 profit per property. This amount of income might not seem like much at first.What is a good monthly profit on rental property? ›
Some investors use a benchmark of $100 per month per property. That's not enough money to get rich off of, but incremental cash flow like this can go a long way toward building your wealth over time, especially if the property value also increases over the long term.What is considered a good rental return? ›
An investment property which has a high rental yield (generally between 8-10%) may mean that it is undervalued. However, a property that returns a low rental yield (between 2-4%) could suggest that it is overvalued.What is the 14 day rental rule? ›
You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of the total days you rent it to others at a fair rental price.How many properties do you need to live off rental income? ›
Therefore, you're going to need 15 to 20 properties to pretty much replace your income for the average person. That's a lot of properties to buy. That's a lot to think about.How do I make my rent stand out? ›
- Ensure your listing is compelling. ...
- Take professional photographs. ...
- Marketing at the right place and time. ...
- Top priorities for tenants. ...
- Tenants' top features in a home. ...
- Boost value with add-ons.
How To Attract Great Tenants?
- Advertise through different mediums.
- Make a list of necessities that you will provide to your tenants.
- Conduct a systematic tenant inspection.
- Maintain mutual respect to retaining good tenants.
- Add Lighting. The easiest way to brighten up a space is to combat darkness with light. ...
- Use Light Furniture. ...
- Add Colorful Accents. ...
- Decorate with Glass and Mirrors.
How many rental properties do you need to become a millionaire? ›
To become a real estate millionaire, you may have to own at least ten properties. If this is your goal, you need to accumulate rental properties with a total value of at least a million.Why do millionaires rent? ›
Long story short; rich people don't get rich buying homes in which to live, they get rich making investments. Finally, there's one other reason why many wealthy people are choosing to rent—flexibility. Renting preserves your mobility while owning ties you to a particular location.What type of real estate makes the most money? ›
- Home Inspector. ...
- Real Estate Lawyer. ...
- Real Estate Broker. ...
- Commercial Real Estate Agent. ...
- Property Manager. ...
- Corporate Real Estate Manager. ...
- Wrapping up.
Rental real estate is a great side hustle that can earn relatively passive cash flow month after month. If your local market is too expensive, take a look at Roofstock, a cool online marketplace built for out-of-state-investors. Many houses listed already have tenants and property management in place.Which is more profitable flipping or renting? ›
There's no straightforward answer to which is the better investment strategy, and it's really based on your investment goals. If your goal is to earn income quickly, flipping houses may be a better option for you. If your goal is to build your cash flow to earn passive income, buying rentals may be a better option.How do renters build wealth? ›
Get rich as a renter: How to build wealth when you don't want to own a home
- Take advantage of reduced pandemic rents. Rawpixel.com / Shutterstock. ...
- Find better investments than homeownership. ...
- Use the money you save to pay down debt. ...
- Invest in yourself. ...
- Shop around for deals.
- Financial Services.
- Business Consultancy.
- Investment Firm.
- Education and Training Service.
- Cleaning Business.
- Healthcare Consultancy.
- Business Consulting. If you're an expert in your industry and have been working at it for years, you should consider consulting. ...
- IT Support, Technology Consulting, and Repair. ...
- Cleaning Services. ...
- Accounting and Tax Preparation. ...
- Auto Repair. ...
- Real Estate.
- Payments tend to be lower than a comparable house payment.
- Rent may cover utility costs for an additional savings.
- Relocating is easier.
- Maintenance and repairs are not your responsibility.
- Credit requirements are less strict.
Family homes are the most in-demand property type across the country – according to the latest Nationwide and Zoopla house price index. It shows that demand for detached and semi-detached houses has doubled in the past year alone.
Why do Millennials prefer renting? ›
Younger professionals are generally income rich and liquid asset poor,” says Lisa K. Lippman, a real estate broker at Brown Harris Stevens in New York. “Therefore, renting allows them to live life at a standard comparable to their income without plunking down a large down payment for a purchase.What is the most difficult heavy equipment to operate? ›
Generally, out of all the heavy equipment, motor graders are perceived to be the most difficult vehicles to drive.Is equipment rental profitable? ›
Owning and operating an equipment rental business can be very rewarding and profitable. Many equipment rental business owners started out with one used machine, and gradually built up their businesses through hard work, great customer service and maintaining a fresh and healthy equipment fleet.What state do heavy equipment operators make the most money? ›
Some of the tool brands, which never let the customers down, are Stanley Black & Decker, which is one of the oldest and has been working since 1843.What tool brand lasts the longest? ›
Endico Power Tools is the best brand which provides the best and durable power tools.What real estate business is most profitable? ›
- Become a landlord.
- Flip property.
- Manage property.
- Real estate photography.
- Become a real estate agent.
- Combine real estate business ideas.
Yes, you can get rich as a landlord. You can go broke, too. And in between those two extremes, you can find yourself dealing with a bunch of problems like leaking roofs, non-paying tenants, and economic downturns. The risks of building wealth with real estate are substantial.Can you become a millionaire with rental properties? ›
Real estate investing is not the same as buying a home to live in. Rather than investing in a property that costs you money every month, you're buying a cash-flowing rental property that puts money into your pocket. There are plenty of real estate millionaires out there, and there's no reason why you can't be one too.Can you get rich on rentals? ›
The truth of the matter is this – one rental property isn't going to make you rich. If you get an average of $100 per door per month in cashflow from a rental property, investing in a duplex will only net you $2,400 a year. Three of these net you $7,200 a year.
What are the 4 ways to make money in real estate? ›
- Increase a property's value.
- Generate regular income through a property.
- Buy and hold residential real estate.
- Participate in investments that don't require you to buy property.
- 7 Fastest Ways to Make Money in Real Estate. ...
- Renovation Flipping. ...
- Airbnb and Vacation Rentals. ...
- Long-Term Rentals. ...
- Contract Flipping. ...
- Lease to Buy. ...
- Commercial Property Rentals. ...
- Buying Land.
The 1% rule of real estate investing measures the price of the investment property against the gross income it will generate. For a potential investment to pass the 1% rule, its monthly rent must be equal to or no less than 1% of the purchase price.How many properties do you need to make a living? ›
You might earn more, but that's the average person. For the average person, three properties could be more than enough to completely replace their income.Can I retire on rental income? ›
Key Takeaways. Rental real estate can be a good source of retirement income. The relative inefficiency of the real estate market can produce bargains that offer strong returns. If you need to borrow to buy a rental property, do so before you retire.How much profit do most landlords make? ›
Landlords Have an Average Income of $97,000 a Year
While landlords might bring in cash from several sources, their income levels tend to be solid.