Category Archives: Heavy Equipment Rental

Rent your heavy equipment rather than selling them

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Heavy equipment can always fetch you a good resale value but before you think about reselling it, it is very important to understand if there are any other options available that you can take to retain the machine and also make some money during the course of time when it is lying idle. When you are full with work in hand, you do not have to think about renting any of your machines. On the contrary, you may feel the need of having more such machines in your kitty but there may be occasions when you may not have enough work with you and are compelled to keep few of your equipment idle. Well, keeping them idle is not going to help you in any way. You do not get anything if they simply lie down there doing nothing. It is always better to rent them so that you make some money in this bargain and also retain the equipment once the term of the contract gets over. Getting people who want to use the heavy equipment on rental basis will not be a difficult task as you will always find some or the other small contractors who are in the hunt of heavy equipment on rental basis. However the question is how you will know who needs what kind of machine and for this you can simply post an advertisement in a local newspaper. Mention a bit about the machine and give down your contact details so that the ones who are interested can call you up and pay a visit at your place. The other option is you can post your advertisement on internet. This is what majority of people are doing. The feel that posting an ad in a newspaper has become redundant in today’s time and since more and more people are attuned towards internet, they will get more visitors if they post the listing on some heavy equipment rental web site. So all you need to do here is register yourself with a popular online heavy equipment site. List your machine on the website and give the entire description of the machine. Here, unlike in a newspaper ad, it allows you to mention in details about the machine. So you can just put across everything you know, every small feature that people would like to know and help them take a decision. Once you get a taker, the next important step is to form an agreement with him where you will state the terms and conditions in detail. You can get in touch with your attorney who can help you to draft an agreement. The agreement should explicitly state the tenure for which the taker will take your machine on rent and the rental amount he will be paying on a monthly basis. If there are any other conditions that you have, you can state it all there on the agreement. Get it signed by him and keep the original with you. In this way, you can manage to get money on a monthly basis without losing the equipment forever.

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How to grow your heavy equipment rental business

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Construction business like any other kind of business has its ups and downs. There will be occasions when you will have a lot of work to do and at times you may not get any work for months or you may have very limited work to do for which you may hardly require a couple of small equipment to get your work done. So the major question is what one should do who have a bunch of heavy equipment at his disposal. This is a quite a tricky one because he can’t sell them off as he may require those machines as soon as he gets some projects but since he is not sure how soon he can end with one, he also can’t leave his machines idle. In such a situation, the best option would be to rent the machines and earn good rental amount till the time he thinks he anticipates that he will remain out of work.

Simultaneously, if he wishes he can also set up a similar form of business where his sole job would be to rent heavy equipment to the end users. There are many new construction companies that are small in size and also can’t afford to buy machine that are so expensive. They hugely depend on people who are willing to rent their machines at a reasonable price. Now the issue is there is no intermediary who can bring both the parties at a common junction from where they can do this transaction. This gives rise to another form of business; that is setting up a company that deals exclusively with machines that can be taken on rent. So if you start up a business where you are dealing with rental machines, you need to ensure that you have good contacts from people who are willing to give their machines on rent and people who want them on rent.

Do business on internet:-

People love to do internet. For every small thing, they are highly dependent on internet and they get the answers of most of their queries from there. So you can clearly envisage the potential prospect you will get if you set up an online business where you are putting up machines on rent and people who are interested to do business with you contacts you. You give them what they want, take your cut from both the parties and your work is done. You can also register yourself in some online selling store that deals with selling/renting of heavy equipment. Post the images of machines that you can give on rent and wait for someone to reach you.

Internet has the potential to connect you to large number of people. This means that you have a large customer base and can make the most of it from them.

Advertising it in different forums:-

You can also advertise about your business in magazines that are related with the construction, mining and heavy equipment domain. So people who are in this industry will go through your piece of advertisement and give you businesses.

Hire, Purchase or Lease – Which One is better for Your Next Heavy Equipment Investment?

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Presently, construction industry is blooming but in a slow speed. In this situation, is it better for a construction company owner to lease, procure or rent a bulky paraphernalia? According to Peter D. Gregory, the senior vice president of the reputed construction group of Atlanta commented that right now the condition of the market is tentative that’s why the construction company owners are hesitating to procure heavy equipment or go for leasing deals. Yet, the construction concerns still require bulky paraphernalia to accomplish their task on the site.

In large organisation, the construction business possessors hire equipment managers and chief financial officers to give suggestion on the issue of renting, leasing or purchasing the heavy equipment. On the other hand, in the budding construction firms, the owners alone take the decision. The presidents of some of the well-renowned construction companies stated that the decision entirely counts on the financial condition of the organisations. To determine, which one is the most suitable one needs some logical prediction and forethought. Here in the following piece, the readers will come to know the difference between the buying, renting and leasing a heavy construction equipment.

Renting, Purchase and Leasing Options for Construction Site Contractors

Rent option helps the contractors to save their capital. Often, they choose the option of renting when they require a specific item for a particular task. Some of the well established construction merchants stated that renting is more costly than lease and purchase options because it provides flexibility to the clients.

When the contractors procure heavy construction apparatus, the dealers not only proffers instant ownership but also subtracts the depreciation cost of the equipment. The interest the possessors get form the deduction helps the construction firms to conserve their tax amount. Majority of the construction organisations prefer to buy heavy equipment parts as it adds as a valuable asset in the in the balance sheet. But, the majority of the budding construction owners prefer to go with the lease option because of the Alternative Minimum Tax (AMT).

Lease is yet another option that is facilitated to the construction company owners by the dealers. It is the best choice for those organisations which are not efficient enough to utilise the depreciation. Other than ownership, this option also provides usage pact with typical no money upfront quality.

Comparison Between Lease, Rent and Buy of Heavy Construction Equipment

For long term use, the charge of the lease is much lower than the renting cost. Therefore, it is sensible for the contractors to avail the benefits of leasing heavy equipment for long term basis. If the construction company owners desire to attain the equipment, then the outright purchase technique is more economical to other alternatives.

On the other hand, for short term purpose, the option of renting heavy construction apparatus is the best. If any construction concern owner wants to go with the buy option, he/she should asses some factors like time duration of the application of the equipment and its maintenance cost.

To sum up, it can be said that all the above mentioned options of availing the benefits of heavy equipment are beneficial to the construction owners unless and until they have the skill to attain it in proper way.

 

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How to motivate your people to make a successful heavy equipment rental house

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Selling small range to large scale heavy equipment is a big business and also a rewarding one and many are able to make a good career out of it but in order to make it big in this industry, it requires lot of motivation. It is not so simple to stick to this industry especially when you have cut throat competition all over the place. Here you need to know all about the machine in order to sell it. People who would be buying it will know something or the other about the equipment and may ask you numerous questions and if you are unable to answer them, you may lose the deal. If you feel that selling is not your cup of tea but you still like to stick to a business that revolves around heavy equipment then you should look to open a heavy equipment rental house. Here you do not need top notch selling skill. Anything short of top notch will do but you can’t be a complete novice as far as your subject that you would be dealing with is concerned.

It has been witnessed that people begin a heavy equipment rental house but they lack the zeal to grow. They are short of motivation that can keep them going in odd times. So the thing that is utter importance is to keep the guys motivated and keep their hopes alive that they also will be able to make it big in this domain.

Success stories and live examples can really motivate people:-

We require motivation from our peers and our closed ones to carry on with something that at times is not too interesting or due to odd market conditions, things may go against you. In situation like these, things that can really inspire us are some real success stories of people who against all odds were able to make it. So live examples of people who have bravely dealt with the problem rather than running away from it or just being sitting ducks and waiting for things to go their way. Stories about people who have turned the tide and made things go where they wanted it to. Such kinds of stories are really inspirational and heartwarming. Stories like these can have a huge impact in the minds of people who are looking to become successful in heavy equipment rental business.

Walk the talk:-

One should always walk the talk. It is no point in giving big talks to a crowd of audience when you do not have the capacity to do it. People may feel cheated by hearing to those big talks and may take whatever nice you said to them in a negative way. This can be discouraging factor and hence in order to set things right, you first have to practice what you have preached. When they see you taking the right moves towards a successful career in the heavy equipment rental business, they will automatically feel inspired by you and may take on their journey with courage and dignity

Renting heavy equipment in 2015

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Setting up a construction company has never been an easy task especially for people who do not have anybody from their family into this industry. Knowing the tricks of the trade can be a very difficult job and on top of it procuring heavy equipment can take you on a royal ride. Buying heavy equipment will eat away most of your investments and you will be left with hardly anything to take care of your business expenses. This is the problem which many newbie are experiencing and when they realize that things are going out of their hands, they wind up their business. This brings an end to their dream of establishing a construction company.

Now for people who have heavy equipment that are mainly lying idle as they are out of business for few months, they are not sure what they can do with those machines. It hurts to see them doing nothing and getting rusted remaining out in the sun. Here we have 2 set of people with 2 different requirements but both associated with each other. In other way, both of them can help each other by the later one giving the machine on rent and the former paying a said sum of money on each and every month for a defined period of time.

The year 2015 will give a lot of opportunities to people falling under these 2 spheres. What we have noticed in the last few years is people do not want to spend more on buying heavy equipment. They are more comfortable in hiring them from the guys who possess them and once they complete the work, they give it back to them with some minor wear and tear.

Go online to search for guys willing to rent heavy equipment:-

It may not be easy to hunt for guys who rent their machines to others. Either you should know people who are in the business of renting their machines or you need to hook up with an some one that deals with renting heavy equipment. The next best option is to go online and check sites that deal with renting heavy equipment. These sites may not charge you anything as they ideally bill the guy who gives the machine on rent. So you do not have to bother about the expense part. Just check the equipment they have put online and the rent they are demanding. If possible, try to contact the party and see if they are willing to negotiate and bring the rental down.

Inspect the equipment before taking it on rent:-

Once you have identified the equipment, the next thing you can do is inspect the machine before you sign on the dotted line. Take a mechanic along with you if you are not the person who understand much about the machine and do a thorough inspection. Only if the mechanic is content with the equipment, you should go ahead with the deal.

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Decrease Expenses and make Profit by Leasing Excavators for Construction

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Excavators are heavy equipment used for constructing, mining, digging and moving huge unmovable objects. They are big in size and difficult to operate .On the construction site different kinds of equipments are required like scrapers, excavators, wheel loaders, bulldozers etc. The Excavator is perhaps indispensible equipment for its wide variety of applications. It is used for both constructing and demolishing a building. Leasing excavators is becoming popular by the contractors. Before renting, here are some tips to follow:

Funds

With a range of excavators available for lease selecting the right equipment is vital. Depending on the size of the project undertaken you should lease the equipment. If the construction project is small select a less powerful excavator but if the project is a big and complex one then a heavy and powerful excavator is essential. It is important not be over budget so that you are able to meet other construction expenses. It is important to select a leasing company that suits your pocket and provide cost effective services. Prepare your budget according to your needs. Always remember that you have other expenses too like land digging, clearing the construction site etc. If you are selecting to hire a contractor, know the expenditures involved in it.

Goodwill of the company

There are plethoras of companies that offer excavators for lease. It will be shrewd that you always opt for a reputed leasing company with good feedback and encouraging reviews. You should ensure that you don’t land in any kind of problem which proves to be expensive later. Always do research online and make comparisons with other leasing or renting companies, Read reviews thoroughly that are available on sites. Also look for those renting companies online that offer good customer support for 24*7 such as quick responses to your queries, providing toll free phone numbers for conversations etc.

Excavator Rental or Leasing Costs:

Excavators can be rented for stipulated time. It can be availed on daily, weekly, and monthly basis. If the excavator is big and powerful it will cost you more money for leasing.

  • Every day charges of renting vary from $350 to $1,600 or more. Below that price you can access to a less powerful excavator.
  • Monthly rates begin at $3,000 and can go up to $15,000 or more. An excavator with middle dimension of 45,000 pound would cost $6,000 to $7,000 monthly for renting.
  • Excavator rented on weekly basis charges around $1,250 and can cost up to $5,000. For lesser price you can get a 17,000-pound small equipment.
  • Construction activities have undergone drastic changes in recent times. Today constructing a project takes four months to complete. This is due to availability of heavy construction equipments like Excavators, Tractors, Scrapers, and Loaders etc. for leasing. These days’ heavy construction equipment are technologically superior and upgraded requiring less time to complete a construction project. They are beneficial to a user since they consume less fuel and are versatile and efficient in carrying out all the activities of construction such as cleaning, grading and demolishing a site.

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Best Options for Leasing Heavy Equipment for Construction Industry

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With the increase in construction projects the demand for leasing construction equipment has also increased tremendously. Construction industry is labour intensive as well as capital intensive. The contractors also need to use complex and diverse equipment such as Tractors, Excavators, and Loaders etc. Construction activities are numerous and diverse. Contractors have to manage and bring all the factors of production together such as land, labor, capital etc. Cost of all construction projects is an important factor .The contractors nave to control the budget and coordinate competent project supervision. Construction equipment are costly and the maintenance and repairing costs are also high. Specific heavy equipment requires qualified and skilled operators. Smaller contractors face financial constraints to buy heavy equipment since their budget is fixed. Bigger contractors lease or rent heavy equipments to be cost effective and also get the appropriate equipment for construction purposes.

Leasing is a lucrative option for both large and small contractors to cut down their expenses in construction projects. But there are several factors to consider before leasing heavy equipment.

 

Capital: When a contractor, project manager purchases new heavy equipment, they need to find out what are the best options available to them. The heavy equipment tend to decrease in value with daily wear and tear. So instead of making huge investments in buying them it is the best option to lease the heavy equipments to conserve money for unforeseen needs.

Equipment Supervision: Another factor to consider before leasing heavy equipment is equipment supervision. Heavy equipment such as scraper, cranes, excavators, loaders, rigging equipment are very costly. You need proper maintenance as well as dexterous operators to run them well. You may also require utilizing the professional operators to supervise the equipments and legalize their use.

Government Strategy: Government policies are important to consider before leasing heavy construction equipment. The government has laid down certain safety and security instructions regarding the superiority of the machines to be used in the construction site.

In the case of leasing, a contractor can ask for subtraction for the full price of the heavy equipment from the taxable earnings. Capital grants can be asked for the total price of the assets if you are leasing it for a time period of more than 5 years. In certain cases time period of 7 years is mandatory.

Wrap Lease: This leasing contract allows the contractors to merge some lease payments into a single, usual payment. This is an appropriate option for those building contractors who need to lease heavy equipment all of a sudden. Leasing combines their outstanding expenses and they can use it to invest in leasing new heavy equipment. This is extremely useful for those building contractors who are undertaking colossal and complex construction projects with volatile requirements and difficulties.

Fair Market Value Lease: Fair Market Value Lease is an extremely vital factor when you are considering leasing heavy building equipment. This option is beneficial in that case where there will be a fast decline in the value of the equipment due to usual wear and tear as a result of constant daily use. The repairing costs can be high too. These days a number of leasing companies are supplying services of expert workforce at no cost for performing maintenance and repairing work.

So leasing heavy equipment can be can be tricky task. Several factors have to be kept in mind before you make your decision to lease it. The article will give you all the information you need before leasing.

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Advantages and Tips of Leasing Heavy Equipment for Construction and Mining Projects

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These days leasing of heavy equipment is considered to be a money saving option without compromising on the quality of the equipment. Both for short term and long-term purposes leasing can be the best option for the contractors and project managers in the construction or mining site. It has numerous benefits and advantages. Some of the outstanding benefits of leasing are as follows:

Leasing is cheap: If you don’t have adequate capital for spending then leasing is an excellent option. It will help you to get the heavy equipment you want. In case you need to upgrade your existing heavy equipment for an upcoming construction project you may need to spend hundred and thousand of dollars from the bank. If you consider leasing the equipment it can be cheap and less expensive.

 Saves capital for future:  It is not a shrewd idea to invest massive capital in purchasing new equipment. You need to save your precious money for unforeseen emergencies, economic downturn or in case of recession in the construction sector. Leasing is the best method of preserving money for future use and put together your capital for other activities. You need to make monthly payments for leasing a heavy machine or equipment for construction. You can avail small business credit from banks for financial assistance. So it is hassle free and helps you in preventing exhaustion of your cash.

Equipment leasing is also beneficial in cutting down operational expenses of the heavy equipments and finishing all the construction projects in stipulated time.

Helps in saving taxes: Under section 179 leasing gives you reduction up to $50,000.You need to discuss this matter with your tax consultant to avail this benefit. Your construction equipment you have taken for lease must come under this section so that you can avail tax benefit.

Tips of Leasing Heavy Equipment for Construction and Mining Projects

 

Research on which equipment you need: Compare the various kinds, brands, dimensions and models online to land with the best equipment. Research is important, as it will give you information on the various leasing or rental companies that provide tractors, scrapers, excavators, loaders, bulldozers etc.

Figure out how much time is needed to hire the equipment. The time period of renting heavy equipment spans from day by day, weekly, and monthly basis. So get to know in how much time you will get the equipments for hiring.

Use websites like RentItToday or Equiprent to find the least possible prices of renting equipments: They present leasing quotes free of costs for the heavy equipment you require. Apart from these websites you can get information from the Yellow Pages or use Google for searching.

Give back the equipment in time and in good state to avoid extra fees: Make sure you return the equipment in top condition without slightest damage.

To sum up leasing and renting a heavy equipment can be a daunting task but hiring it is beneficial for both small and big contractors in many ways.

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Renting a heavy equipment from the owner/rental house

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There are many new construction companies who are struggling to keep their businesses afloat. Every other company is experiencing some or the other problem. Some are short of finances; some are simply not getting enough businesses to keep running their business and some don’t have enough money to buy the right set of heavy equipment. Well, many people fall in the third segment. They have to wind up their business due to scarcity of funds to buy required heavy equipment. The problem seems to be a big one with sort of no solution. However, there is one solution that can work thing out in a positive way for many new and not so financially strong construction companies. They can rent the heavy equipment that they need to complete the project.

There are few things that one might want to consider before they finally decide to rent the heavy equipment.

Kind of equipment they need for the project:-

Heavy equipment are of many types and can be used for multiple purposes. Hence, it is very important to identify the kind of heavy equipment that one may require for the project. One can’t just invest his money in renting the top notch equipment even though he/she does not see much use of them. He/she has to categorize the equipment on the basis of their outcome and simultaneously start hunting for equipment that meets his/her requirements and also fulfills the need of the project. Once the person knows the kind of equipment he/she needs, things will become easier for them. However, for people who don’t have much knowledge about heavy equipment should first hire someone who can give him clear guidance about the equipment and not land them into any mess.

Hunt for owners who want to rent their equipment:-

After identifying the heavy equipment, the next big thing will be to search the person who will be ready to rent the equipment at a price that would be amicable to both the parties. You can make use of internet where you will find such advertisements in bulk. You need to check the features of the equipment and check if this is what you require. Once you have zeroed on the item, you get in touch with the owner/rental house and set up a meeting.

Ensure you go along with a technician to inspect the equipment:-

You may be a good visionary and know what are needed to run a business. You may be a good strategist and a thinker who can make future plans for the growth of the company. But if you don’t know much about heavy equipment going without a sound technician can cost you dearly in the bargain. Therefore, it is imperative that you go along with a heavy equipment technician or a mechanic who knows in depth about the model you are going to inspect. They may charge a fee from you which will be very nominal. However, that will be very helpful to you in making the right choice for the benefit of the project.

 

Advantages of renting heavy equipment

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The constructional and industrial companies should decide very carefully whether to buy or rent heavy equipment. Sometimes, renting the equipment can be more beneficial to buying the equipment. If you too planning for getting equipment, first consider for what purpose you are going to use it. This consideration will help you to decide whether you should buy or lease the equipment. Undoubtedly renting the equipment has some major advantages. Some of those advantages are given below.

Advantages of renting heavy equipment

The growing sectors of industries are becoming busy with heavy constructional works. They don’t want to spend much money on getting the equipment while at the same time not ready to compromise with the quality. Here comes the idea of renting the equipment.

  • If you are leasing a heavy equipment, you will not be burdened with the job of maintaining it regularly. Though there are some heavy equipment which require a bit maintenance through routine testing. But, in case of renting, it is the renting company which is going to do this task for you. This will enable you to schedule your work properly without investing any time and money in maintenance of the equipment.
  • One important aspect of the machine ownership which most of the companies don’t consider before purchasing is the storage facility. They left the equipment in open spaces which ultimately lead to the damage of the equipment. When the person is opting for renting the equipment, he doesn’t need have to spend much money in creating a storage building or renting it. It is the duty of the renting company to manage a space for storing the equipment properly.
  • Another great advantage of leasing the equipment is the transportation facility. Suppose, your working place is far away from your equipment storing room, then transporting the equipment to the worksite can be time consuming, expensive and tiresome. In such a case, most of the people hire a third –party company to transport the equipment. Too much complicated, right? If you opt for renting, the company will provide you with transportation of the equipment without any extra charges to the worksite.
  • The most common thread which unites all the operational advantages to leasing is the reduction in labour costs and time. The hidden costs of purchasing the equipment often make it very difficult. If you are deciding to rent the equipment, go on because it is economic too. No additional costs are required to upkeep the machine in case of leasing it. Sometimes, the companies have to set up complete divisions only for proper handling of the logistics and support their equipment.

If you have low budget and cannot afford to buy the equipment, you should kick on for leasing it. Look for the company which will offer you a well-stocked and maintained fleet of heavy constructional equipment. The company should also provide you with top-notch quality service. So, go ahead and get your equipment type on leasing and start the construction business.