As stated earlier in this thread, a large proportion of the rental business unfortunately IS to unskilled, unqualified customers. But, like just mentioned, if it were to all qualified individuals, the yards would be full.
It's a risky business in terms of mechanical and cosmetic damage, agreed. But if you want to make money in it, the glory and intimacy of new, shiny iron needs to leave and concentrate on the business of renting equipment with a good, cut-and-dry rental agreement contract stating certain restrictions and liabilities about damages.
Again, we have over 30 pieces of Caterpillar equipment from 301.6's to 320C's that Harry Homeowner rents, and the 320C comes back with busted glass and dents constantly. The small excavators get thumbs ripped off every week from guys trying to pick up rocks bigger than the machine itself with a flimsy Amulet Hoe Clamp, and all sorts of stuff. WE DON'T GET NERVOUS...That's why we have guys like me, and John and Bob (other employees that work in the service side of the business,) that weld, fix, straighten, change and rechange certain critical parts that would directly affect the safe, functional operation of a given piece.
The key to this business, and listen carefully...SERVICE. Not customer service, I'm talking about mechanical service. It's a continuous and tedious facet of it, but it's a necessary evil if you want to maintain a safe, relaible fleet. But the customer has to supplement the cost of it with damage insurance or good old "greenbacks", period.
It's s simple concept. You break...you PAY. Very easy to understand even for Harry Homeowner. We have his credit card number on file,.. we win,.. he loses if he decides he's not responsible for the damage that was inflicted upon return of the unit. As we pick up and deliver every piece, we do a thorough inspection of the tin, the interior, and all parts that would be subject to damage and document it on every rental contract.
Once you decide to start a rental business, the love affair with straight sheet metal and shiny yellow paint HAS to go away, or you may want to consider an occupation with less trauma...:wink2
I had an incident 12 years ago or so where I leased-purchased a brand new excavator from a dealer, ran out of work at years end and decided to call them and level with them. They said, just bring it back here, and in the spring come back to get it and start going again, no problem. Come spring, they sold my machine I had $27K into in lease-purchase payments, and we got into a severe pee'ing match. I went out and bought 2 used pieces of another brand for the price of the one from the jerk that rooked me on the new one. They found out and next thing I get a bill for $5,500.00 damages on the machine I anticipated to keep for a long time.
Long story short, there were lawyers, guns and money involved. The rotten, no good dealer slapped a judgement on me for the $5,500.00 which I said they'd get only if I had $5,500.00 worth of valuables on me at the time they closed the lid on my COFFIN. That was over 12 yrs. ago, they are still waiting, hope they don't hold their breath too much longer.
The point is, it stated in the lease-purchase agreement I was responsible for the damages. Dents, a replaced side door that I didn't get to put the brand name back on yet, some other stuff that is normal, they billed me double retail. I had a numb attorney that advised me not to pay the bill, and it turned out not so great in the end. The good news is, the judgement never affected my way of life one ioda, refi'd my house with it, did some other things with it, and it never caused one ounce of lost sleep. Now it's gone off the credit report, and that dealer can go pound sand forever.
Damages can and will present complications to the renter, so they are the loser in the event of a problem. Pretty simple math, really.:cool2
