One thing that makes the rental business risky is trusting your expensive equipment to someone you do not know.
One thing that makes the rental business risky is trusting your expensive equipment to someone you do not know. Of course, we rent equipment out for a good profit, but we aren't there to observe how customers use them. The most we can do is hope that customers treat our equipment as theirs instead of treating them as single-use items.
Now the question is how to minimize equipment losses and damages to extend their life and save ourselves from unnecessary replacement or repair expenses.
We have listed ten tactics that will change the game and encourage your customers to use the rental items more responsibly.
A signed agreement has three functions. Firstly, it notifies customers about the possible penalties and charges in case of damage or loss, and Secondly, it serves as proof during conflicts. Third, contracts with a clear damage policy make renters more responsible while using rental items.
How to create those documents? Nowadays, it is easy, thanks to technology. You can find examples or templates for rental agreements online. However, it will be challenging to have your online customers sign them. Still, you can address that issue simply using Reservety, which automates online bookings and allows customers to sign the documents electronically.
Consistent inspection of your items will help you discover the damages and know when those damages occurred. We know that damages can happen in the warehouse or while in possession of other renters. Therefore, inspecting rental items before and after the rentals will pinpoint a person responsible for damage so that you can charge repair fees based on the contract.
A simple way to do it is to create an inspection checklist with Reservety and save it under the customer accounts to avoid misunderstandings or errors.
Security deposits can serve as collateral to minimize unpaid damages and losses. The percentage or amount of deposits may depend on the value of the rental items, and you should require higher deposits for more expensive items. Here is a more in-depth article about rental security deposits.
How to set up the rental deposits? It is super easy with Reservety. You need to input how much you require a deposit per inventory. The system automatically puts a hold on that amount (so the customers won't incur commission fees) and removes the hold once the items are returned in good condition.
The best way to prove that damages were caused during a renal is to take pictures before sending the rental equipment out of your warehouse. Take multiple pictures from several angles with a better-quality camera to zoom in and compare them in case of damage.
GPS trackers may not be necessary for certain rental products, but they are essential for transportation such as cars, trucks, heavy machinery, and trailers. Most companies now use small tracking devices installed in hidden spots, and they can operate for several months on their in-built batteries. Whenever someone decides to take off with your rental trailers or vehicles or hide your top-dollar heavy machinery in some remote areas, you can easily detect and pinpoint their location from your smartphone or PC.
Installing and tracking GPS trackers may require some technical knowledge, but Reservety integrates it into your dashboard so you can track the movement with a simple login. Here is an article we have written about GPS trackers.
Renters do not always cause damages and losses; you are also responsible for taking care of inventories to extend their lifecycle. Cleaning & washing items, oiling joints, changing faulty parts, and taking other preventative measures are some of the simple steps. When you add your rental items to Reservety's digital warehouse, you can put special notes to track each item's maintenance record to track better which items are due for maintenance.
Storing your items inside a proper warehouse has multiple benefits. Namely, enclosed storage protects the items from weathering damage caused by sun, rain, and winds. Plus, items stored in the enclosed settings keep the thieves away if you lock your items and secure the environment with 24/7 surveillance cameras.
Inventory management software is must have, especially if you have many items in your inventory. Otherwise, you won't be able to know missing items or items' expected return dates if you are handling numerous bookings a day.
We highly recommend Reservety's all-in-one rental software because it comes with a built-in inventory management system. It does not only help you to manage your inventories but also helps to track their usage, shows their availability in real-time on a centralized calendar system, and notifies the owners if the items have not been returned on their deadline.
When we say minimizing losses in a rental business, we do not just refer to a loss of an item but also the loss of income. If you have been in the industry long enough, you should know about last-minute cancellations or bookings without follow-ups. Unless you request a deposit at the time of booking, your rental business may face similar challenges constantly.
Considering all the booking-related challenges, Reservety implements a deposit system that automatically requests a deposit (based on your settings) at the time of booking. It is a convenient option and remedy for the loss of income related to fake bookings.
Poor-quality equipment is not worth the effort or maintenance expenses as their quality is so low that it can't endure the multiple rounds of rentals. Renting out cheap equipment can crash your reputation too because customers may feel tricked, and the rate of damages will be high during the usage, causing the worst disputes between customers and the owners. Therefore, buy equipment that can last for longer. If you are still deciding which brand to buy, read online reviews, network with Facebook rental communities, and get the items with a good warranty.
Minimizing losses and damages should be the primary objective in the rental industry because companies trust their expensive items to people and expect them to treat them with greater care. However, it can't always happen the way we prefer. Some renters may neglect the items, leading to unexpected repair or replacement expenses. But there are always tactics to address those issues. Here are the primary ones:
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