Category Archives: Rentals

Proper agreement is required before you rent your heavy equipment

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Construction business is never constant. It will have a rising as well as a declining trend and it may hit you hard when the trend is declining. Therefore it is necessary that you be prepared to meet the circumstances when things are not going the way you want. First and foremost you need to do away with your heavy equipment that are sitting idle. By doing away, it does not imply that you sell them off but you can make use of another option and that is to rent it to someone who has work with him but no heavy equipment. You can meet his need by renting the machine to him and in turn you charge him monthly rentals. In this way, your machine will be in use and there will be inflow in income on a monthly basis.

Since we are talking about renting the construction machine, we also should be focusing on another important fact and it is forming an agreement with the taker. An agreement with the taker is very crucial when you are handing over the equipment on a temporary basis to an unknown person. It actually guarantees that you keep on receiving the money till the end of the agreement and once the term is over, you can either renew the contract or can get back the possession of the equipment. Whatever the case may be, a contract with the party assures that your machine will be in order and if there is any major wear and tear that happens with the machine, the taker will be liable to bear the expenses to get that fixed.

An agreement is often made only after you are done discussing the terms verbally and you want to put everything on paper. It also implies that both the parties are accepting the terms and therefore it is there on the paper. The parties will then sign on the dotted line and then they are bound to abide by the terms mentioned in the agreement. If any of the side goes against the terms, they will be accountable and may be fined by the law of the land. Therefore, it is very important that one must go through the terms mentioned in the agreement thoroughly before they sign on the dotted line. Once it is signed they can’t go back on the terms.

The giver should mention the amount he will receive each month for renting the equipment and the total period for which he is renting it to the taker. He can also mention the type of care that the taker should be taking while the equipment is in his possession. Things like the time when the machine should be given for servicing, how long you can keep the machine working etc. also forms a part of the contract.

Renting the equipment has always been a viable option for people who have several machines lying idle with them and need someone who can make good use of them and in turn pay them the rentals.

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 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

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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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.