Ok, I'm new to this forum but had a question. I have my own business but winter is slow for me so I decided that since I have the one ton truck and a 40ft trailer I never use anyway.. why not rent it out. I've looked online for pricing and have found it anywhere from $40 to $60 and on up to $94 a day for a 40ft. I was thinking about $500 a week or $1500 a month. I think it's reasonable and might help a few other people that can't afford to jump in and buy a trailer get into it. Question? Am I way off on what I think is fair. If I go ahead and do this I was thinking this would be a great site to advertise on but haven't gotten that deep into the numbers yet. The trailers will be tagged however not commercially as that would be up to the renter. Normal wear and tear is my responsibility. At least that's what I have learned from a couple of real places. Or... am I crazy for considering it? My normal job can take me anywhere on a moments notice so that is why I'm a little hesitant to just drive my own rig.
Looking at starting my own trailer rental company
Discussion in 'Expediter and Hot Shot Trucking Forum' started by Ben Harper, Feb 16, 2015.
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If you are renting them, they are commercial.
Get a lawyer to do some research about this, because I can tell you that if you have someone get into an accident with your stuff, you are also liable and your insurance may not cover a thing if they find out you are renting them out. -
Of course a contract is only as good as the paper it's written on but the contract I found seemed to cover that....
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There a bunch of companies who rent for $500-800 per month, nobody is going to pay you $1500
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When you rent a trailer it comes properly registered, inspected, insured, and the rental company is responsible for the wear/tear, tires, brakes, and such. Do you really want to rent your trailer out to someone who is just starting out, have them curb your tires, tear off a hub, break something then call you at 2 am and ask "so, who are you sending out to fix this?" Also, make sure your insurance will cover a sub-rental, most will not, so you would be on the hook for everything if the customer was to damage the trailer.
You asked for our opinions, I doubt anyone here is going to think this is a good idea. I applaud you for thinking outside the box, but really do not think it is worth the hassle and risk for the rental fee you would get. Last thought, what happens when they take off with your trailer and you never see them again, they abandon it half way across the country and you have to pay a several thousand dollar towing and storage bill to get your equipment back out of impound? Also, how is the rental customer going to put commercial plates on your trailer while the title stays in your name? You would have to provide all of that, and insurance even if you require them to carry insurance, you need it to cover your rear!jbatmick Thanks this. -
The lawyer thing comes into play to do the research on the laws and regulations YOU need to abide by and fulfill, not just about the contract. AND then you need to retain one just in case you have an issue with a customer.
I looked into just renting out one of the trucks and small trailer for CDL testing and was surprised at the liability that went with this. So I decided to get it on the road and forget the headaches. -
I've looked pretty deep into this over the years. And some day I plan to do something similar right here where I am. You do have some hurdles in front of you but as long as you have the money, you can clear them. Like everyone is telling you, talk to an attorney, have him/her research the legalities, and have them write the rental/lease agreement for you. Costs a little bit but they'll write it to protect you and your business. I'd recommend getting a dealers license, incorporating this new venture, and look into the insurance for a business like this. I don't think insurance will be as expensive as you think for this business. The renter/leaser will have the trailer covered while it's rented/leased out under his own unidentified trailer policy. It's a easy policy for them to get, or add to their existing insurance and it really doesn't cost all that much. Provided you'll be renting/leasing to licensed motor carriers.
One thing I'd probably do, especially because you're based out of KS is I'd get this new business it's own State and Federal Motor carrier Authority. From what I hear Kansas has some pretty good tax benefits for businesses with motor carrier authority. For instance no sales tax when a motor carrier purchases equipment. At least thats what I've been told by my Kansas based Owner Operators. If thats the case though whenever you buy more trailers to rent/lease out thats a nice chunk of money saved.
Good luck with your idea. -
Tell you what, before you do this, walk out and beat on the trailer for an hour with a sledge hammer, then think about renting it out... Because most of the people that would rent it, have NO IDEA of what they are doing. THAT'S why you don't see trailers like this for rent much.
I saw an enclosed trailer the other day with a FOR RENT and FOR SALE sign on it, it was in such bad shape, I wouldn't of hauled garbage in it. -
Thanks for all the input. Yes on the lawyer..... the reason on the price was based on the research I did online. Also what gave me the whole idea was someone offered me $1500 a month and they were putting their commercial plates on it. I'm not giving up on it but am proceeding slowly. I may just drive it for awhile and park it when I'm doing my other work. Thank you all again for all the input. It's called FOOD FOR THOUGHT
Ridgeline Thanks this.
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