Valuable Rental Business Niches Are Profitable
If you’re looking to get into the rental business, it’s kind of difficult to make too many recommendations here because there is such a wide variety of what you can, well, rent out, in the rental business.
Below, we'll list the needs and risk level involved in starting some of the more popular types of rental businesses.
Home Rental business
The upside of renting out a house, boarding home rooms, or apartments, from your own rental business is that people area always going to need homes. This is a low risk investment simply because, as long as your rental business has a home to rent, somebody is probably going to want to rent it from your rental business.
However, the home rental business is also the one of businesses that requires a high startup investment, as well as a whole lot of time.
An easier route to maintaining a rental business is to employ a manager or superintendent to help keep your clients happy, but nonetheless, you’re going to have to do a lot of research regarding real estate value in your area before starting your home rental business, and it may be a year or more before your homes are ready to rent.
However, the home rental business is one of the most high-yield investments you can take on in today’s market.
Because of the sheer ambitious scale of starting an apartment rental business, you may find it difficult securing bank loans or investors. Rather than building an apartment building from scratch, you may want to look into established apartment complexes where the current owner is looking to sell, because the sheer scale of the initial investment is really more than most people can afford to wager.
DVD and Video Game Rental business
The downside of starting a video game and DVD rental business is that the Big Name companies really have something of a monopoly on the market, and it’s very hard for small rental business owners to break in. This doesn't mean it’s impossible to have a successful DVD rental business of your own.
The trick to competing with big, established rental business companies is to offer something that they do not. In a lot of neighborhoods, there are small DVD and game rental shops that manage to thrive by offering obscure and hard to find films, and video games for outdated systems.
The same applies with online movie rental business. Websites like Netflix stock new releases and mainstream films for the most part. If you’re knowledgeable about subgenres and hard to find gems, there is a real market for this.
Car Rental business
This rental business may seem like a tough business to break into, but if you can offer more variety, lower prices, or specialty vehicles, you can work out a niche for yourself and develop a strong customer base.
The main investments here are collecting cars, insuring them, and renting out a lot or a garage to keep your vehicles in. If you’re not rich, you'll need investors or a good solid loan.
This can seem difficult to secure investors or bank loans for, but if you have a strong business plan, anything is possible. Visit antique car shows and the like, and you might find a few doctors or lawyers who love cars and would enjoy investing in such an opportunity.
The risk involved in this kind of rental business can vary greatly depending on your particular vision.
If you wish to rent luxury cars and sports cars (most of the big name rental business places don’t do this), you can bet on a few middle to upper class customers renting a car from your rental business for a weekend trip and the like, but the vehicles will be more expensive, and pricier to insure, especially for renting purposes.
However, your rental business will also be able to rely on a smaller customer base than if you rent general purpose vehicles, so you won’t need but a select few to start your company with.
Rental Business Legal Issues
Whatever kind of rental business your passion leads you to, look into copyright law in your area, as well as insurance laws, and keep an attorney in your address book.
If your rental business is into renting DVDs and other intellectual property, copyright law can be pretty fuzzy, and each district has its own rules and regulations on insurance and inspections regarding vehicle and home rentals.
A Final Note about Rental Businesses
Whatever your rental business focuses on, just make sure it’s something you can be passionate about.
Rental Business Resources
Minimum Start Up Cost |
Under 10,000 |
Minimum Start up Equipment |
A suitably zoned home, transportation, basic maintenance equipment, inspection and permit costs, computer with broadband connection, mobile phone |
Optional or Advanced Equipment |
Hot-tubs, fireplaces, website |
Associations |
NARPM : National Association of Residential Property Managers |
Courses |
Basic business courses are useful, but not required. Trade courses in maintenance are also helpful. |
Reference Sites |
Real Estate Investing | Rental Houses
The Business of Owning and Renting a Vacation Rental Home |
Important Point To Keep In Mind
See Also: How to Start A Business : Business Idea of The Day
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