It is pointless to acquire an asset and make no use of it. As long as the asset is of some use to you or generates some sort of income it can be called as an asset but the moment you keep the stuff without gaining any monetary benefits in return or do not use it at all it no longer remains an asset and has every chance to turn into a liability. Heavy equipment is a much needed requirement in the entire construction sector. However, you do not need one machine to do all types of work. This means that once your need is done with the heavy equipment it will remain idle for months. The best way to generate income of the idle machine is rent it out to people who will make good use of it and will also pay you money for using the machine. You will come across lot many people who will be ready to pay you handsomely for using the heavy equipment. It is because no one wants to spend a fortune in buying a machine and then keep it idle once they see the use of it is over.
The market to rent used heavy equipment is big. You have multiple avenues through which you rent your heavy equipment. You can catch hold of a broker or a company that deals with renting heavy equipment, list it online on heavy equipment portal or simply check out on your own and see if you get hold of someone who is interested to use heavy equipment on rental basis.
Heavy equipment broking companies:-
These companies deal with buying dilapidated heavy equipment and then refurnish it by changing its vital parts and once that is done they either sell it off to new customers or let-it out. They buy those old heavy equipment at a comparatively lower price and give it a new life by changing the entire look of the machine and adding few additional features thus also increase the price of a completely junk item. Once that is done they do not see hassle in letting it out to small construction companies. These guys can be approached if you want to let out your heavy equipment. The machine need not be with them but you can hand over the pictures of the stuff to them and they in turn will find the guy who wants it on rental basis.
List the heavy equipment online:-
There are plenty of online portals available that deal with letting out heavy construction machineries. They charge a nominal fee to provide the online service. All you have to do is list the machine after putting some pictures of it on the portal. Provide your contact details so that interested prospects can reach you and come to inspect the machine at a time convenient to you. If they like to go with it, you should prepare an agreement that would state all the necessary clauses and should be signed by all the parties.
Grading work in the construction industry is getting dominance with every passing day. As long as you do not have even paths for the workers to move they can’t do their work effectively. You can’t expect them to work in full swing when there are uneven ways where one finds it difficult to walk. You need to first make sure that the paths are sorted and once that is made even people can move easily and will be able to work swiftly. So the crux of the matter is to grade the road and make it even for people to walk with ease. You therefore require a motor grader to do this for you. A motor grader is undoubtedly expensive heavy equipment and contractors generally do not prefer to buy them because once you even the surface you may not need the machine again.
Other than winters when there is snow all over the road and you need a grader to cut through the snow you can then make full use of it. However, once the winter is over you may not need the machine other than grading purpose. So it does not make much sense for small time contractors to buy them. The most suitable option for them is to take it on rent. They will not mind paying rent on each month and once the work is done hand it over to its original buyer. In this way they only have to shell out few thousand dollars and not a mighty sum of money. This demand for grader gives immense scope to people and companies in particular who own motor graders rent them and earn money in return. So the owners now do not have to worry about their machines being idle and catching rust or developing complication due to no work. They can give it to these contractors who can make good use of the graders and it eventually turns out to be a win-win situation for both the parties.
Redo the motor grader before you let it out:-
Renting a motor grader will definitely give you good money but before you rent it out you must check if the grader is good to work. If it has not been at work for months then you need to first start the machine and check if it shows up with some problems. In case you see any issues, try to get that sorted first and then let it out. Call a mechanic or take the grader to one and redo the entire thing. Remember that you are not selling and it will come back to you. So if you give it in a bad state you may get it back in a worse state. Please do not get into a situation where you will not get any takers after having rented it for just once.
Online sites charges less fees:-
You can list the motor grader on an online platform. The website will charge you a nominal fee for listing the machine but that should not be a problem as long as viewers are able to view the machine. You can check the viewership details on the website and can understand the number of viewers visited your listing.
Construction of roads has now become a healthy business and many small contractors are lining up to get a piece of the cake. They want the road construction projects to be given to them so that they can make good money once the work is done. The overall cost of the project is understandably much lower than the actual contract price which is why contractors find it to be a comfortable one to get into. Now in the road construction project, motor grader plays quite an instrumental role. The primary function of the motor grader is to grade a piece of land and level it so that while you go to construct the road, there is no unevenness found on the surface. This process is normally done before placing asphalt on the surface of the road. In a nutshell, without the application of a motor grader, you will not be able to construct good wide roads.
Though these graders are not so expensive to buy but still contractors prefer to take them on rent. The reason is these machines are not used through the road construction process. It is only used wherever some sort of grading work is required. Alternatively, if someone owns a motor grader, he may not use it always. The need of a grader is quite specific and once the need is fulfilled the machine is left idle for most of the time. Therefore it makes absolutely no sense to buy a machine that has a lot of importance while building roads but has a very specific purpose attached to it and can’t be used for multipurpose work. The best option is to take it on rent for few months and once the work is done and you no longer need the machine, you can give it back to its owner.
This limited need of the machine gives rise to another form of business and that is renting of motor grader. There are some companies who buy graders in bulk and then they let it out to the ones who need them for road building. These companies work in close nexus with contractors who are primarily engaged in road construction work so that if ever anybody requires a grader, they can make it available for them. The rental amounts they charge from these contractors are a bit lesser than the rentals charged normally.
Now for individuals who have bought a grader and do not need it for some time can rent it on websites or can simply approach these companies who in turn will route the machine to someone who needs it. They may charge a certain amount of fee for their services. An individual can first try it out on a website and check if he gets some response and in case if things do not work out for him there, then he has these guys who can get it done for him. Overall, a grader is such a machine that has pretty decent demand in the construction arena and will never find it idle if someone wants to rent it out.
The increasing population has led to increase in the construction activities. Many construction companies cannot afford to a buy and maintain all new equipment for their work. In case of short term projects, after completion of work the equipment is no longer required and this leads to waste of money. Hence, companies prefer to buy equipment and machines on rental basis at an affordable price and return it after use. Thus, the equipment rental business has gained a lot of momentum in last few years and is profitable.
It is observed that many equipment rentals, rent only specific equipment and not all types of equipments. Being in rental business of specific equipment can be a good idea as it saves the cost of buying and maintaining different equipment. Track loaders (TLs) are type of heavy equipment, used to move aside or load materials such as asphalt, demolition debris, snow feed, rock and so forth into or onto another type of machinery. TLs can do every kind of construction activity. Although not a perfect tool buying different equipment for every work is not possible for any construction company since it’s a heavy investment. Hence, multifunctional TLs are in demand. However, they are expensive, hence most construction companies prefer buying these equipment on rent.
The following are some tips for person in business of renting track loaders to make it profitable:
TLs are expensive and rental service provider (RSP) should be able to afford to buy them. He should be aware of his personal expenses while owing a big place or showroom, advertising, labour and maintenance costs, and so forth. He should make a business plan and have strategies to sale TLs on rent.
TLs should not be overpriced. Many people are willing to buy on rental will find it difficult to purchase. Hence they will negotiate with the price. Quoting the appropriate price is important.
They should make his business known by advertising through newspapers and websites.
Buying brand new TLs is costly. Hence instead of purchasing the entire fleet of TLs (of different sizes and models), the RSP should study the demands of the market to know what is mostly preferred by the construction industry. Keeping TLs from small to mid-size of different brands is a good option.
Due to technological advancements, the new equipment have become compact and easy to operate. This increases productivity at the work site since the speed of work increases. The new compact TLs are more in demand and are said to replace the heavy bulldozers and preferred than the skid steer loaders. RSP should provide such technologically advanced TLs on rent, which increases the customer interest and sales.
Buying used equipment on rental basis is common for the short duration projects, hence they are in demand. Thus, RSP can also look for option of renting ‘used’ or ‘second hand’ TLs, since purchasing such equipment is cost affordable. However, they should be careful while choosing such equipment that they are not very old aged and not used much. Only when these used machines have less wear and tear and their parts are available that they should be purchased from the seller.
The RSP should be careful while renting the expensive heavy machines to the buyer. They should understand the nature of work requirements of the customer and should guide them properly. Also they have to make sure that the buyer has the capability to pay the rental amount and should take care of the equipment and will return the equipment in good condition. The rental agreement has to made between RSP and prospective buyer before the equipment is rented that all the terms and conditions are acceptable to both parties.
We buy heavy equipment on the basis of our needs and it has been often seen that after upgrading the heavy equipment, we are ultimately left with 2 machines of the same stature. So what we eventually think is to do away with the old one since we do not see any need of it. Well, we are wrong if we think about selling it off unless the machine is too old for anybody to use it and you sell it as scrap. However, when you have the option to rent the equipment why go for selling it. Bulldozer is often the first equipment possessed by a contractor. He may need it for his demolition business but then after a point in time he will think of upgrading his arsenal and might buy another one which is far more technologically advanced. In a situation like this, he can end up renting the previous machine and continue to make recurring income.
There is always a market for renting bulldozer:-
Bulldozers will never find themselves out of market. As long as the construction industry is in existence, dozers will have their place in this segment. Therefore, the dozer you have and you may not need it will always find someone who will want to use it. You can let it out to them by making a contract for a week or month or year or more than that and also fix an amount that you will get as a compensation for letting the other person use your machine. There are many contractors who are in constant hunt for dozers as they can’t afford to buy a new one. They are pretty happy to pay the rental money in lieu of the dozer.
Dozers are eye candy for demolition business owners:-
People who are into the business of demolition do not intend to make big investments. As a matter of fact, this is probably one of the few businesses where you do not need a lot of capital to invest to kick start your business. All you need in the form of heavy equipment is a dozer and few accessories that you need on the dozer. They certainly do not want to buy a dozer which can prove to be very expensive to them. The best alternative for them is to get it on rent. Since the rentals of dozers are comparatively cheaper than other heavy equipment, it certainly fits into their pocket. Simultaneously, getting a demolition job is simpler; they can easily afford to pay the rents without any defaults.
Can demand higher rent if machine is in good condition:-
The instrumental factor that determines the rental price of a dozer is the condition of the machine. If the machine is in good health then the price can be a bit higher but if it is not then you can’t expect a good rental value from it. This means that you got to take good care of your machine whether it is in use or not so that if ever you have to let it out, you can get a good price for it.
Imagine that your excavator is sitting on a huge pile of mud and needs to clear it off. In such a situation an off road articulated can get that cleared off in no time. The excavator can fill all the soil in the truck and the truck will then ferry the mud to a dump yard and dispose the mud. An articulated truck is of immense importance in the construction sector especially in the excavation demolition and mining business where they excavate earth and then load the stuff in the truck to ferry it to the dump yard. A big jobsite needs on an average 10-15 articulated trucks at a time to do the job. This shows the importance and also the growing demand for these trucks in both the construction and mining sectors. In such a situation if you have an off road articulated truck which you want to rent you can expect lot of takers for it. You only need to ensure that the truck is in good working condition and is not very old.
To rent an articulated truck should be a simple task for you. You have to choose one of the options from a selective few. The options are as follows:-
Listing the truck on your own:-
This is perhaps the most simple and convenient way that you can adopt to rent the truck. All you need to do is get yourself registered on an online platform that is reputed and also known to many. Once that is done, list the truck under the “Rent” option and put the latest pictures of the truck on it. Write a bit about the truck as in how old it is and if there has been any issues pertaining to its performance and stuffs that you feel is important for the taker to know. The rental price that you quote should be in tandem with the market price. So please do not quote a higher price as long as you have strong reasons to quote that. If you are in this industry for long then it will not be difficult for you to come out with the appropriate rental price or else you do some research before mentioning the price. Prospects may turn away if they find the price to be on the higher side.
Give it to a dealer to rent it for you:-
This is perhaps the next best thing that you can do to rent an off road articulated truck. You walk-in to a dealer and talk to him about renting the truck. You hand over the keys to him so that if someone drops in to check out the truck he can do so without losing any time. You then have to just sit back and wait to receive a call from the dealer. Give him a week’s time and if you do not get to hear anything from him, give him a buzz.
Renting heavy equipment has turned out to be a big business as contractors do not want to buy heavy equipment and find taking machines on rent to be more affordable.
Many newbie after starting their business in the construction domain has experienced the problem of shortage of heavy equipment. It is because of this issue they lose many important projects that can be a life changer. This is when they feel dejected and some are even forced to shut down their offices. Well, as a matter of fact, things are not that bad as it may seem to be for guys who really want to make a career in this profession. Unquestionably, heavy equipment is very expensive but that does not mean that one can’t operate his business just because he can’t afford to buy them. Well, if you can’t afford to buy them you can definitely afford to take them on rent and that is the most viable option you can take to carry on with the business.
The question is how one can trace people who are renting their heavy machinery. This was a difficult job few decades ago but after the inception of internet that has taken over the entire globe this is no longer a challenge. There are numerous online platforms that are helping people to meet their business needs. It was not that the taker was experiencing the problem of not finding someone who is ready to let his machine but the owner equally experienced the same issue. However, with the advent of internet a lot of these problems have come to rest.
All you have to do is register yourself with an online platform that deals with buying, selling and renting heavy equipments. There are also other online portals that deal with almost everything. So you got to first ensure that you have reached the right platform. It is advisable that you register yourself with a website that exclusively deals with heavy equipment. Such online portals can be very useful as you will get to see heavy machinery of different brands and of different types. You will not be restricted to just one type of machine. You can just search for the thing you are looking you will get all under one roof. This was not possible before internet could make its presence felt to the people from the construction industry.
Though internet has been helpful to many people from all walks of life, but if we limit our focus to guys from the construction and heavy equipment domain, this technology has been nothing less than prolific. There are few instances where some buyers were cheated by fraudulent sellers but the online portal owners are looking into these cases and making their laws stringent so that rights of both the buyers as well as sellers remain protected. Frauds can happen in any industry and in any kind of environment. The rise of internet should not be blamed for any fraudulent activity. On the contrary, norms should be made so that renting heavy equipment online can happen risk-free and more people can reap benefit from this technology.
When you are dealing with highly priced items, it is very important that you follow the right platforms to deal with them or else it may lead to various sorts of complications in the future. It may also lead to losing the heavy equipment forever. In order to avoid any confusions or hindrances, it is crucial that you follow the right platforms and you will find things going your way. Construction equipment is quite expensive. You buy a machine for thousands of dollars and put it to use for few years. After which you feel the need to upgrade your arsenal and have to do away with the old machine. However, if you are not a filthy rich guy, it will definitely pinch you hard to just let go the old metal. If possible you may want to retain the machine but if you do not see any use of it, then there is absolutely no point in keeping the junk with you.
In such a situation it is prudent that you let-out the machine to another user and collect monthly rent from him. In this way, you still possess the equipment and also have put it to use and simultaneously getting good money as rent. Now, when you talk about renting the machine, it is quite imperative that you follow few parameters that will let you rent the equipment without any risk of losing it. Following few essential parameters means that you rent the machine through proper channels and by following right set of rules.
First and foremost you should be checking the right channel through you can search takers who would be willing to take your machine on rent. You can depend on newspaper classifieds or websites that exclusively deals with heavy equipment. Most of the websites that deals with purchase and sale of heavy equipment also works in the sphere of renting them. You have to classify one such website that is pretty famous within the masses. By posting the heavy equipment in that website will increase its viewership. People from across the country will get access to check the ad and anybody is interested will get in touch with you. You can then decide if you want to ship it to a different city or want to give to someone who is from your city.
You may charge the shipping cost from the taker but that has to be informed to him in advance. One more thing that is more important that discussing the shipping cost is the rent amount and the period for which they are seeking to rent the machine. Also, you got to state them very clearly the duration at which they need to service the machine. If the machine will be used extensively then servicing the machine should be more frequent. Make sure that you prepare a proper rent agreement with the taker and mention all the valid points that you guys have agreed to in the agreement. Once the agreement is signed, you can ship the machine to the taker.
In a construction job, there are various types of heavy equipment used and many heavy equipment are more or less similar as far as their work is concerned. This means that one type of heavy equipment is compatible to do work of other heavy machineries as well. Though they have certain limitations but can certainly be used in the absence of the primary machine. One such heavy equipment is a Track Loader which is competent in excavating land and loading the debris automatically on the truck.
Though people prefer using an excavator for digging deep in the ground but something that does not require digging that deep can be done with a track loader. At the same time, since excavators are more in demand, they are also highly priced machines. You can find a track loader to be anytime cheaper as compared to an excavator. However, a track loader is more often rented than any other machine. The reason could be that it is available within the budget of a mid-sized construction company.
By renting a track loader, you can earn good rental income. So in case you have a loader that is not in use and you have decided to sell it, you should perhaps give it a second thought. Selling the machine will give you a good chunk of money but that will be the end of the story but if you let it out for months or year or so, you continue to get the rental income and also by regular servicing of the machine, you can lengthen its life and therefore keep its selling price intact.
Getting a taker for the loader is also quite simple. With the help of internet, you can post the machine on an online portal and write in details about its description. Try to post as many pictures as you can so that people by getting a look of the machine can assume it to be a good one. Quite truly, the machine has to look good to catch one’s attention. Therefore, if the loader is dirty and looks filthy, get it washed and painted. If there are any dents, get that removed and replace any parts that have ceased to work. All this needs to be done before you put the pictures on the listing. A detailed description is important for people to know what they are getting into. Normally, takers wish to contact the owner of the machine before striking the deal. So you can write all that is true and wait for the takers to call you.
While you list the Track Loader, please specify the rental amount in clear terms. There should not be any sort of confusion pertaining to that. If you are ready for negotiation, you can entertain the taker or else strictly mention that you are not willing to negotiate the price. Ideally, you should keep a window for negotiation and not be so rigid with the price.
For guys who has lot of heavy equipment that are lying idle for the time being and they are unsure as to when they might need them again they can rent it out to people who will make some use of it and keep the machine in working order. If you keep heavy equipment idle for a long time and then all of a sudden start using it, it will generate issues. It may just not start or might give problems for which you need the help of a mechanic to get that sorted. This is why it is always better that you rent the machine out to someone who can use the machine and also pay you the rental.
There are some companies who solely deal with renting heavy machines to contractors and other small and big sized construction companies. As a matter of fact most of the big construction companies to a certain extent depend upon rented heavy equipment. The big sized companies hire contractors for the job who in turn largely depend on rented heavy equipment. This means that as long as you have a thriving construction industry, the parallel business of renting heavy equipment will never run dry. One of the most common heavy equipment that is used in almost every construction jobsite is an excavator. So you will normally find the demand for excavators on an increasing trend and if you have them in plenty then you can for sure make good sum of money by not doing anything.
All you got to do is simply rent them out to contractors or construction companies and ensure that they do not misuse it or overload it with work. Normally people have the tendency to get more work done on heavy equipment that are rented. They know that they do not have to keep the machine with them forever and therefore do not have to bother about the maintenance and service costs. Since it belongs to you, you are supposed to make sure that the excavator is not overloaded with work and is also serviced at regular intervals.
You can rent your excavator by listing the machine on an online portal. Portals that are meant for renting heavy equipment should be used for this purpose. Register on one such website and take few pictures of the excavator to post it on the listing. Please mention the model number of the excavator on the title of the listing and be a little descriptive about the machine. You may want to add things like the age of the machine and few of its features that will attract the attention of the prospect. The pictures that you add should be clear for the prospect to make out if at all the machine is worthy to be taken on rent.
Leave your number on the listing for interested people to contact you and if they want to inspect the machine you should not have any problem with that. The website will charge you some fees to list the item but that will be too nominal and should not be an issue.