Ongoing demand for tool and equipment rental services makes it potentially lucrative to open a rental business. Many small companies and privately owned businesses need certain types of equipment on occasion. Instead of investing in new equipment that must be stored and maintained, a tool and equipment rental business can provide that equipment on an as-needed basis.
The video affirms the value of renting equipment instead of buying equipment makes economic sense.
Local Markets Drive Rental Needs
Different equipment might be in higher demand than other kinds of equipment in certain locales. Snow removal equipment would be useless in the Desert Southwest. But that same equipment would have a relatively high demand in the Midwest and other snowy regions. Some basic market research could help to identify in-demand tools and equipment.
Deductible Maintenance Costs for Tool and Equipment Rental
Owners of rental equipment and tools do the maintenance and repairs to keep them in good working order. Maintenance and repairs are deductible items for businesses, including tool and equipment rental companies. When a rental business takes on the costs of maintenance and repairs, that should be covered by rental fees and business tax deductions. They could even deduct depreciation costs.
