Golf carts are becoming popular, even outside of golf courses.
Why?
They are convenient, short-distance transportation that can carry the whole family or a group of tourists in one trip.
Imagine this!
You take your family to a lovely park with several landmarks, but it will be challenging to see them all on foot.
In that case, you would need transportation to reach all points without exhausting yourself.
You would think bikes would work, too. Indeed, they would.
We already have an article about starting a bike rental business, but bikes are for those in good shape.
If the group comprises individuals with stiff joints induced by years of sitting on office chairs, golf carts would be a better option.
You got the point here!
Now, let’s move on to how to start a golf cart rental business.
Simple Step-by-Step Plan
1. Study the Market.
The demand is the number one thing you need to analyze. If the area has no demand for golf carts, the rest of the steps will be in vain.
Although it would be hard to calculate the true extent of the demand, basing your business in any of the following locations can ensure better demand.
Beach Towns & Coastal Areas
As we mentioned above, most vacationers prefer comfort. Most tourists also prefer open-air transport, especially in coastal areas.
Resort & Tourist Destinations
Vacation communities and resorts usually cover large areas, so tourists may need your golf carts to get to the places.
Please note: However, you may need to partner with hotels and resorts to offer your carts to their clients. Some resorts have internal golf cart rentals, limiting your chances.
Retirement Communities
You can start your golf cart rental business near retirement communities, as seniors need them to run errands or move within them.
Instead of trying to rent them to seniors, you may offer your carts to property owners with long-term rental or lease options so they can better cater to their residents’ needs.
Golf Courses & Country Clubs
There is a good chance those places already have golf carts, but that does not mean you should rule them out.
Go out and talk to the golf course operators for a partnership. Sometimes, golf courses prefer third-party golf cart rentals to avoid costly maintenance.
Your rental business can also be a backup golf-cart provider during peak times or tournaments.
Event Venues & Festivals
Areas with popular events and festivals can have greater demand for golf carts as guests need lightweight transportation to navigate event premises. Some VIP guests may need them to transport their baggage.
For example, state fairs, music festivals, sports events, and other community events will be ideal.
Tip: Hourly rentals and shuttle packages will be ideal in those places.
College Campuses
Campuses are usually large, and each department is in a different building. Students and staff may need to commute between them, and they have limited time to do so. Your golf carts can make their life easier.
We believe fleet-style rentals to schools will be the best rental model on college campuses.
Large Campgrounds.
Campgrounds with a beautiful environment can attract a significant number of visitors. Outdoor people prefer golf carts because they can breathe fresh air while going from point A to point B.
You can partner with park operators to make this work even more efficiently.
Historic Districts and Downtowns.
Tours in downtown or historic districts are getting popular. However, this activity requires long-distance walking, which is unsuitable for all visitors.
Using large vehicles in those districts is prohibited, so tourists need eco-friendly, lightweight transportation, such as golf carts.
Self-guided or guided tours will work better for this purpose.
2. Study the competition.
All the areas we mentioned above may already have golf cart rentals.
If they do, check their prices and rental models to position yourself as a competitive business.
Although it is challenging to beat the established businesses, you can always take innovative approaches using rental software solutions like Reservety.
They make your business more attractive than those using outdated rental models.
Customer feedback also tells a lot about your competitors. Use their reviews as guidance to create a social-proof golf cart rental business.
3. Be familiar with local regulations.
Check if golf carts are legal on public roads in your area and ensure you can obtain all the required licenses and permits.
Also, study what insurance and safety guidelines you must follow to rent your carts to individuals and companies.
Once you have done market research and feasibility analysis, move on to the next step, business planning.
4. Business Planning.
Every successful business starts with a good business plan. When planning a business, consider the following vital points.
Business Model
Which of the rental models do you prefer from the list below:
- Short-term rentals (hourly/daily)
- Long-term rentals (weekly/monthly)
- Event rentals (weddings, festivals, etc.)
You can use all these models and set up different rates for each.
However, managing hybrid models manually would be difficult unless you use rental software such as Reservety.
Because it allows you to set up different rates for each rental model, and the system automatically calculates the fees based on the customer’s selection during the online bookings.
Services
What additional services are you going to offer along with golf carts? You probably want any of the following:
- Delivery & pickup
- Custom branding or decorations
- Guided tours
- Shuttle packages
- And more.
We recommend adding additional services as an add-on to increase your revenues.
Revenue Projections
Estimate costs vs. potential income for various rental durations. Managing your budget efficiently can bring long-term stability to your business.
Some startups fail due to overspending and inefficient allocation of funds without overseeing future costs.
5. Legal & Administrative Setup.
Registering your business as a legal entity
After feasibility analysis and business planning, you must take your first step to turn your concept into reality.
The first should be business registration. Contact your local authorities or the chamber of commerce to register your business.
You have several options for converting your idea into a business entity. The most popular type is an LLC, the most common type in the U.S.
To learn more about registering your rental business as a business entity, please refer to our article about party rental businesses. The steps discussed there can also be applied to a golf cart rental business.
Permits for operating on public roads.
If your golf carts utilize public roads, they may need special permits.
The rules may vary in each jurisdiction. So, consult with the relevant authorities to obtain those permits.
6. Get Insurance.
Insurance is essential, no doubt about that. Since the golf carts cost thousands of dollars, we recommend getting insurance that covers the following.
- General liability
- Commercial vehicle coverage
- Theft/damage protection
7. Funding & Budget.
We briefly discussed the importance of setting up a budget above, but we will add more details in this section.
When it comes down to calculating costs, try to list everything that will require finances.
Here are some of the areas you need to allocate your budgets to.
- Golf carts ($5,000–$12,000 per cart, depending on new/used and features)
- Trailer/truck for transport (if you plan to deliver golf carts)
- Storage/warehouse or garage (you must park your golf carts in secure spots to prevent theft and damage from weathering).
- Insurance
- Branding, website, and initial marketing. (To minimize your costs, you may use Reservety, which provides a rental website, online booking system, management, and marketing tools starting at only $28/month).
Funding Sources
- Personal savings
- Business loans
- Investors or partners
8. Procure Golf Carts.
Start small and scale your way up. You may procure only a few golf carts initially, and if the demand grows, you may add more units.
Please note:
- Do a thorough analysis on which type of golf carts will be preferred.
- Choose the electric or gas one. Electric-powered golf carts will be preferred if most of your customers are environmentally conscious.
- Equip your golf carts with necessary add-ons and rent them separately or along with golf carts as a package deal.
- Coolers,
- GPS,
- Bluetooth speakers
- sunshades
- Custom wraps/branding
9. Operations Setup.
Develop a systematic approach or model for operating your business. Set standard steps for rental procedures and assign responsibilities for your staff.
For example,
You may want the person to visit your website, select a golf cart, select their rental duration, select add-ons or delivery options, read and sign rental agreements and waivers, pay with cash or credit card, and complete the booking.
Reservety helps you realize all those steps seamlessly, with over 200 features and integration options. You can customize those steps according to your preference.
10. Start a marketing campaign.
You can do it both online and offline.
Here are some of the basic strategies.
- Local Advertising:
- Partner with resorts, Airbnbs, golf courses, and hotels
- Flyers at events, welcome centers, and beaches
- Online Marketing:
- SEO and Google Ads
- Facebook/Instagram ads targeting tourists or locals
- Referral Programs: Discounts for repeat customers or referrals
Conclusion
If you have a golf cart rental business or are planning to start one soon, use Reservety’s All-in-One Rental solution, because it provides the following:
- A rental website with an online booking system
- POS system to serve walk-in customers
- Convenient dashboard to manage orders, clients, and inventories
- Marketing tools to grow your golf cart rental business
- Integrations to connect your business with your existing platforms (e.g., QuickBooks, Xero, Google Calendar, and more).
- Calendar system for efficient and automated scheduling
- Electronic agreements and waivers with e-signature options
- Reporting tools to generate real-time reports on your rental business
- And many on-demand features, depending on your business model.
Want to try Reservety? Sign up for the 14-day free trial. No credit card required!
