Cost of Owning vs Renting vs Hauling equipment

[Oxbow]

Similar to a air b n b, they are trying to have other people pay for their hobby excavator or skid loader.

The big thing in my area is selling lake cabins in a development to individual owners. Buy the lake house, they (the developers) rent it out for you (for a fee). You block out what week you want in the summer- and all the other vacationers are paying for your lake cabin. There's been a bunch built here in the last two years.

Sounds a lot like a timeshare.

 

[crane operator]

Sounds a lot like a timeshare.

its just the new version of that scam.

 

[hvy 1ton]

 

[colson04]

While we are on the topic of renting, has anyone else noticed the huge number of private individuals renting out their equipment on Marketplace and Craigslist? It's usually a mini excavator, CTL, dump trailer or the like, often brand new. Makes me wonder if this is stuff people bought and have trouble making the payments on so they try to rent it, or are they actually trying to run a rental business out of their house? Either way seems risky for both parties involved. Anyone here do this, or rent from them?

I have seen the ads. Lots of dump trailers or skid steers for personal rent. With or without operator.

I sold my last gooseneck trailer to a guy that was so busy with the side gig rentals that he was quitting his job and going full time. He bought the trailer from me to deliver his equipment because the insurance offered him a steep discount if only he moved his equipment.

He started with a Deere 27G, and some skid steer for personal use. He finished his project and his neighbor wanted to borrow. They agreed to a rental deal. That neighbor shared the story to his buddy, who then rented for a weekend, etc. The owner of the new business then stopped and got proper insurance before his machine got ruined. Last I talked to him, he had 8 machines on rent and 2 new ones on order. I still see his ads from time to time.

 

[CM1995]

its just the new version of that scam.

If the property is owned fee simple I don't see it as a scam. The rental agreement might be brutal but the owner still owns the home.

Not a bad idea actually. Buy the house, rent it out in order to pay it off and have a paid for home in retirement.

 

[jhark123]

It all depends on what you are doing. I am a big believer in renting when you are starting or growing. BUT, in my opinion, you need to own some type of excavator and loader and a dump truck/trailer to pull them. Size varies on type of work, urban vs. rural, etc. You need to be able to say "yes" to the 1-2 day job when you are starting and they don't pencil when renting everything or paying for hauling.

 

[MG84]

It all depends on what you are doing. I am a big believer in renting when you are starting or growing. BUT, in my opinion, you need to own some type of excavator and loader and a dump truck/trailer to pull them. Size varies on type of work, urban vs. rural, etc. You need to be able to say "yes" to the 1-2 day job when you are starting and they don't pencil when renting everything or paying for hauling.

I'm a bit past that stage in my business, right now I'm in the streamlining/adding efficiency/adding value stage, but I agree with what you're saying. Just for reference I do have a dozer, backhoe, mini ex, skid steer, CTL, two dump trucks/trailers, flatbed truck, etc. I can do most anything my customers need, just some things I'd like to be quicker at, such as clearing and stumping, hence the large excavator.


Looking back at everything I rented last year, it really wasn't that much. Rented a Takeuchi TB260 twice, once for a month to help on a land clearing job, and again for a day to run a hammer on a small bridge demo/replacement job. Rented a Takeuchi TL12 with hammer for a week for a foundation job. Also some small sundry things like a plate compactor and jumping jack, both of which I should probably just buy.

 

[Georgia Iron]

Dozer weights 22817 lbs and trailer is 6500 lbs?

Would ja?

I cant imagine the trailer lasting very long....

 

[CM1995]

View attachment 304374

Dozer weights 22817 lbs and trailer is 6500 lbs?

Would ja?

I cant imagine the trailer lasting very long....

Nope. Too many drivers focused on ticktocking, fb'ing and Lord knows what else on the road to be responsible for that rig.

 

[f311fr1]

I have 3 crews, Crew A is 3 men, one KUV van for supplies, 3 CAT 308 E2 Cr excavators. They do STEP (septic) tank installs in 3-5 subdivisions. At $500 per move one way you can buy a nice used 80 size machine. I bought and paid fo 3 in the last 18 months.

Crew B is 4 men, one RAM 5500 crew cad with long wheel base and a ton of tools and aux fuel tank, one CAT 289D3 CTL, one ASV RT40 CTL, one CAT 305.5E2 CR mini ex, one CAT 308E2 CR excavator, one tandem axle equipment trailer for the CTL and 305, and IH single axle 4300 dump truck

Crew C is 5 men, CAT313 excavator, CAT D4K2 bulldozer, CAT D6R bulldozer Cat 299D3 CTL, IH tandem axle bucket truck, IH 4800 crew cab pick up. F350 crew cab flat bed with aux fuel.

One Mack tri axle dump truck and CDL driver, 26K tandem dually pintel trailer, 40k tandem dually pintel trailerto service all three crews and move equipment.

We started 7 years ago with the single axle dump truck, ASV RC100 and a CAT 304C CR mini ex. All the above except the 313 are paid for.

We do rent mainly excavator and hammers for the septic crew 2-3 days a month.

 

[CM1995]

I have 3 crews, Crew A is 3 men, one KUV van for supplies, 3 CAT 308 E2 Cr excavators. They do STEP (septic) tank installs in 3-5 subdivisions. At $500 per move one way you can buy a nice used 80 size machine. I bought and paid fo 3 in the last 18 months.

Friend of mine installs the individual tanks and pumps for the subdivision wide on-site sewage systems. Basically a septic tank and a pump chamber in the front yard that is connected to a low pressure system that leads to spray fields or other treatment system.

He has 2 - 306's and a 305 he keeps in the subdivisions he works in so he doesn't have to move them. It's cheaper for him to have a machine staged than move it around when you consider crew down time.

 

[bam1968]

I have 3 crews, Crew A is 3 men, one KUV van for supplies, 3 CAT 308 E2 Cr excavators. They do STEP (septic) tank installs in 3-5 subdivisions. At $500 per move one way you can buy a nice used 80 size machine. I bought and paid fo 3 in the last 18 months.

Crew B is 4 men, one RAM 5500 crew cad with long wheel base and a ton of tools and aux fuel tank, one CAT 289D3 CTL, one ASV RT40 CTL, one CAT 305.5E2 CR mini ex, one CAT 308E2 CR excavator, one tandem axle equipment trailer for the CTL and 305, and IH single axle 4300 dump truck

Crew C is 5 men, CAT313 excavator, CAT D4K2 bulldozer, CAT D6R bulldozer Cat 299D3 CTL, IH tandem axle bucket truck, IH 4800 crew cab pick up. F350 crew cab flat bed with aux fuel.

One Mack tri axle dump truck and CDL driver, 26K tandem dually pintel trailer, 40k tandem dually pintel trailerto service all three crews and move equipment.

We started 7 years ago with the single axle dump truck, ASV RC100 and a CAT 304C CR mini ex. All the above except the 313 are paid for.

We do rent mainly excavator and hammers for the septic crew 2-3 days a month.

Do you move your cat D6R with a dump truck and pintle trailer? I'm not implying that it's not legal but I have not seen it done. I feel like if I tried that around here the DOT would have me pulled over in very short order.

 

[Acoals]

With a tri axle trailer it is theoretically legal, I think. Pretty sketchy though.

 

[f311fr1]

D6R is hauled by hired hauler with proper equipment. He also hauls the bigger rental equipment for the rental company. That way the moblization is on the rental ticket as well as the sales tax for the mark up

 

[f311fr1]

When you are doing production work like the step tanks in multiple subdivisions it makes sense to leave the machine on site. Scheduled to be in subdivision A on a Monday for the week for 3-4 systems. guess what the builder did not get the dumpsters moved. Go to subdivison B or C and start one or two there until subdivision A is ready mid week. I did not have to move a machine. At $500-$600 per move that you cannot recover times 3-4 moves a month you can buy a nice low hour machine and keep moving the jobs forward.

 

[CM1995]

When you are doing production work like the step tanks in multiple subdivisions it makes sense to leave the machine on site. Scheduled to be in subdivision A on a Monday for the week for 3-4 systems. guess what the builder did not get the dumpsters moved. Go to subdivison B or C and start one or two there until subdivision A is ready mid week. I did not have to move a machine. At $500-$600 per move that you cannot recover times 3-4 moves a month you can buy a nice low hour machine and keep moving the jobs forward.

Smart business.

 

[MG84]

When you are doing production work like the step tanks in multiple subdivisions it makes sense to leave the machine on site. Scheduled to be in subdivision A on a Monday for the week for 3-4 systems. guess what the builder did not get the dumpsters moved. Go to subdivison B or C and start one or two there until subdivision A is ready mid week. I did not have to move a machine. At $500-$600 per move that you cannot recover times 3-4 moves a month you can buy a nice low hour machine and keep moving the jobs forward.

Although I generally work by myself, I do the same on a smaller scale. It's not uncommon for me to leave the CTL and mini ex at one job site and backhoe and dozer at another 20mi away. While I'm waiting on materials to be delivered, inspections to get done, etc I can just drive the pickup and get to work somewhere else.

 

[CM1995]

Same here. We'll leave the 321 on a job that has multiple phases like one we did downtown and move the 325 around to production jobs. Even though they are easy to move we do the same with the 279's. Since they have keypads no one can "borrow" them.