13 High-Profit Rental Business Ideas for Entrepreneurs

Mayur Panchal
blog updated dateUpdated Date: May 20, 2024

profitable rental business idea

1.6 Million! That is how much BabyQuip Inc. made in revenues last year. It is one of the leading rental businesses idea for baby gear and marketplace rental services. Looks like a lucrative business idea. And if you are already at your whiteboard strategizing to map out how to build a rental business, wait!

This article will help you create a roadmap for your rental business. Before you start ideating, consider all the perks of a rental company. For example, what will you rent out, who will be your target audience and the revenue model?

Considering these factors will allow you to compare ideas and choose the one that brings more profits. We will focus on the top rental business ideas to try with your startup’s target audience and revenue models.

Transform Your Rental Business with a Custom App

13 Top Rental Business Ideas For Small Businesses

top rental business ideas list

1. Drone Rental

A drone rental business offers the chance to rent top-notch drones for different purposes, including aerial photography, videography, surveying, inspection, and more. This business model enables individuals and companies to use advanced drone technology without a considerable upfront investment in purchasing the equipment.

Places where Drones are used –

  • Infrastructure inspection and maintenance
  • Search and rescue operations
  • Agriculture and precision farming
  • Aerial photography and LiDAR
  • Mapping and surveying
  • Beaches and outdoor events
  • Tourist attractions

Target buyer for a Drone Rental Business

  • Professional and amateur photographers/videographers who require aerial shots for weddings, real estate, events, or filmmaking projects.
  • Drones are valuable in construction and engineering because they can survey land, monitor progress, and inspect structures.
  • Farmers and foresters can utilize drones for crop monitoring, precision agriculture, and forestry management.
  • Drone enthusiasts enjoy flying drones as a recreational activity but want to invest in something other than expensive equipment.
  • Drones can capture unique perspectives and footage for concerts, sports competitions, and festivals.

How do Drone Rental Businesses Make Money?

  • Rental fees: You can change fees for renting out the drones based on hourly, daily, or weekly rates, with different pricing tiers.
  • Additional services: Offer extra services such as drone piloting, aerial photography/videography services, or post-production editing and collect fees.
  • Accessories sales: You can sell accessories like extra batteries, carrying cases, and other drone-related equipment to customers, generating additional revenue.
  • Maintenance and repair services: Offering maintenance and repair services for drones can provide a steady income stream.
  • Subscription fee: Offer membership or subscription plans with fees for priority access to equipment.

2. Storage Rentals

Do you know that the average American moves 11.7 times in their life? The reason behind moving may be related to jobs or studies. Storage rental businesses provide secure and convenient storage solutions for such individuals.

These companies offer a variety of storage unit sizes, from small lockers to large warehouses, catering to their customers’ diverse storage needs.

Target buyer for a Storage Rentals Business

  • Homeowners or renters with limited space for personal belongings, seasonal items, or valuables.
  • Students who want to store their belongings during school breaks or between semesters.
  • Small businesses need additional storage for inventory, equipment, or archived records.
  • Larger companies require off-site storage for excess or seasonal inventory, files, or equipment.
  • Startups or e-commerce businesses using storage units as fulfillment centers.

How do Storage Rentals Businesses Make Money?

  • Rental fee: You can charge monthly or annual rent paid by customers for their storage units.
  • Add-on services: You can offer additional services like truck rentals for moving, packing, and moving supplies sales, as well as insurance coverage for stored items.
Maximize Profits with a Rental Business App

3. ATV Vehicles ( All-Terrain Vehicles)

ATVs are versatile off-road vehicles that provide exciting outdoor adventures and practical utility for various applications. Either two-stroke or four-stroke engines power these vehicles and feature sturdy frames, four wheels, handlebars, and a seat for the rider.

ATVs come in different types, including utility, sport, and youth models, each catering to specific needs and terrain conditions.

Target buyer for a Furniture Rental Business

  • Outdoor enthusiasts and adventure seekers who enjoy exploring off-road terrain, such as trails, dunes, and forests
  • Farmers, ranchers, and landowners who require a versatile vehicle for various agricultural and land management tasks
  • Hunters and anglers who need to access remote locations and transport equipment
  • Families and individuals looking for a thrilling recreational activity to enjoy together.

How do Party Rental Businesses Make Money?

  • Rental fees: You can charge customers to rent out ATVs by the hour, day, or weekend.
  • Accessory sales: Offer additional equipment and gear, such as helmets, goggles, and protective clothing, for customers to purchase or rent.
  • Tour packages: At a higher price point, provide guided ATV tours and excursions, which can include transportation, trail access, and other amenities.
  • Maintenance and repair services: Providing maintenance and repair services for ATVs.

4. Party Rental Business

Starting a party rental services business can be lucrative, as parties are a year-round occurrence, ensuring a steady stream of customers. However, this market is somewhat complicated and densely crowded due to the high demand.

Finding your niche by setting up your party rental business with a unique business idea is crucial to stand out and achieve desirable success. This could involve offering specialized equipment or services that cater to specific party types, such as:

Target buyer for a Party Rental Business

The target audience for a party rental services business includes:

  • Individuals planning birthday parties, weddings, or other personal events
  • Businesses organizing office parties, team-building activities, or corporate events

How do Party Rental Businesses Make Money?

The revenue model for a party rental services business can be based on:

  • Rental fees: You can charge users for party equipment, such as bouncing houses, karaoke machines, or other specialized items.
  • Delivery and setup fees: You can offer delivery and setup services for the rented equipment, generating additional revenue.
  • Add-on services: For an additional fee, you can provide personalized decorations, event planning, or other value-added services.
Take Your Rental Business to the Next Level with Our App Development

5. Power Tool

A power tool rental business allows customers to rent various types of power tools for a specific period rather than purchase them outright. This business model caters to individuals, contractors, and businesses that require power tools for temporary projects or occasional use.

The rental service offers various tools, including drills, saws, sanders, compressors, and other equipment used in construction, home improvement, and projects.

Target buyer for a Power Tool Rental Business

  • Those undertaking home renovation projects, repairs, or occasional tasks will rent such power tools.
  • Small contractors, handymen, and builders often require various power tools for different projects.
  • Companies involved in maintenance, landscaping, or facility management

How do Power Tool Businesses Make Money?

  • Rental fees: Charge rental fees for each power tool daily, weekly, or monthly.
  • Delivery and pickup fees: Offer delivery and pickup services for an additional cost.
  • Sales of consumables and accessories: Sell consumable items like sandpaper, blades, and other tool accessories.
  • Maintenance and repair services: Offer maintenance and repair services for power tools and rental businesses to generate income from customers who own their tools.

6. Clothing Rental

The clothing rental business is an attractive opportunity for entrepreneurs with minimal investment. The fashion industry is constantly growing and evolving, with the market projected to reach $6.2 billion by 2023, growing at a CAGR of over 11%.

Target buyer for a Clothing Rental Business

  • Attend weddings, parties, or other special occasions and want to look their best without the expense of buying new attire.
  • Require costumes for events, parties, or cosplay
  • Desire access to formal, vintage, or quirky clothing options

How do Clothing Rental Businesses Make Money?

  • Rental fees — You can charge users for a variety of garment categories, such as grand garments for special occasions, costumes for events or parties, formal clothing, quirky costumes, and vintage collections.
  • Accessory rental services – You can change for additional accessories, including watches, jewelry, glasses, belts, etc.

Read also: eCommerce App Development

7. Canoes and Kayaks

Establishing a canoe and kayak rental business can be profitable with relatively low initial investment requirements. If you enjoy spending time on the water occasionally and prefer not to own a boat, renting canoes and kayaks is convenient and cost-effective for exploring nearby waterways.

Yacht ownership and rental also present a lucrative business opportunity. However, before venturing into this field, obtaining all the required permits, licenses, and insurance is essential to ensure future safety and compliance.

Target buyer for a Canoe and Kayak Rental Business

  • Outdoor enthusiasts are looking to enjoy water-based activities without the commitment of boat ownership.
  • Tourists and vacationers seeking recreational water experiences during their travels
  • Event planners organize team-building activities, group outings, or special occasions on the water.

How do Canoe and Kayaks Rental Businesses Make Money?

  • Rental fees: You can charge customers for using canoes, kayaks, or yachts on an hourly, daily, or weekly basis.
  • Guided tours: You can offer guided water tours or excursions as premium experiences for an additional fee.
  • Equipment sales and accessories: You can sell related gear, paddles, safety equipment, or merchandise to complement the rental experience.
Kickstart Your Rental Business with a Custom App

8. Furniture Rental Business

Opting to purchase new furniture for temporary needs, like relocating to a new city for a few months or setting up a new office, can be a significant financial investment, especially for individuals starting fresh. This scenario is particularly relevant for students moving into flats without furniture. In such cases, buying an entire furniture set can be impractical and costly.

Students are prime examples of individuals who can benefit from the convenience and affordability of renting furniture. The rental furniture model presents a practical solution that aligns with the temporary nature of such situations.

Target buyer for a Furniture Rental Business

  • Students are transitioning to new living spaces.
  • Tenants looking for temporary furnishing solutions
  • Businesses seeking flexible office setups

How do Furniture Rental Businesses Make Money?

  • Rental fees: You can charge customers for the temporary use of furniture pieces, such as sofas, tables, chairs, and beds
  • Furniture delivery: You can offer additional services for delivering and collecting the rented furniture, generating extra revenue.
  • Add-ons: You can offer personalized furniture packages or add-on services for a fee to cater to specific customer preferences.

9. Rental Property

Property rentals are another promising rental business idea. You can start by renting your property or creating a digital app platform like Airbnb. The three common categories of properties are housing, commercial, and recreational.

You can offer rental services in any or all of these categories according to your preference and your state’s rent laws. Some property rental business types are PG room rental, apartment rental, office space rental, event venue rental, vacation property rental, campsite rental, and land rental. Ensure that your property rental business follows all the state laws and regulations.

Target buyer for a Rental Property Business

  • Individuals seeking accommodations for short-term stays or more extended rental periods
  • Businesses in need of commercial space for offices, events, or other purposes
  • Travelers looking for vacation homes, campsites, or recreational properties

How do Rental Property Businesses Make Money?

  • Rental fees: You can provide rental of various property types, such as residential housing, commercial spaces, event venues, vacation properties, campsites, or land on rent.
  • Platform fees: Earn revenue through transaction fees, subscription models, or other monetization strategies
  • Additional services: Offer value-added services such as property management, cleaning, maintenance, or event planning, which can create additional revenue streams.

Read also: Build Real Estate Apps Like Zillow

10. Equipment Rental Business

The equipment rental industry comprises various businesses, from sole proprietorships to large commercial and industrial machinery rental companies. The average annual revenue for sole proprietorship equipment rental businesses in the U.S. can reach $168,007.
However, your earnings can vary significantly depending on the size, type of equipment, and location. The equipment rental industry is diverse, ranging from sole proprietorships to large commercial and industrial machinery rental companies.

Target buyer for an Equipment Rental Business

  • Individuals or families who are in temporary living situations, such as students, young professionals, or those going through a transition
  • Businesses that need to furnish temporary office spaces, model homes, or corporate housing for their employees or clients.
  • Hotels, resorts, and short-term rental properties need to furnish their accommodations.

How do Equipment Rental Businesses Make Money?

  • Rental fees: Charge customers a fee to rent the equipment and supplies for a specific event or period
  • Delivery and setup fees: Charge for the delivery, setup, and pickup of rented items.
  • Damage waiver fees: Collect a fee from customers to cover potential damage to the rented items.

11. Dumpster Rental

The dumpster rental business is the best rental business idea always in demand for residential and commercial waste management solutions. This industry has great potential for profitability, scalability, and environmental friendliness, as dumpsters are essential for construction sites, cleanouts, renovations, and events.

The dumpster rental business model is quite simple. To start, you only need a truck, dumpsters, and a storage yard. The primary process involves renting dumpsters to clients, collecting the filled containers, and properly disposing of the accumulated waste.

Target buyer for a Dumpster Rental Business

  • Construction companies and contractors
  • Homeowners and property managers undertaking renovation projects
  • Businesses and organizations hosting large-scale events or cleanouts

How do Dumpster Rental Businesses Make Money?

  • Dumpster rental fees: You can charge clients a weekly or monthly rate for using the dumpsters.
  • Disposal fees: Earn money by offering for the proper disposal and recycling of the waste collected in the dumpsters.
  • Specialized services: You can offer additional services such as on-site delivery, pickup, and waste management consulting.

12. Event Venue Rental

Event venue rental businesses provide individuals and organizations with event spaces such as banquet halls, conference rooms, and wedding venues for various functions. Key aspects include owning/managing a portfolio of rentable spaces, maintaining well-equipped venues, and providing additional services.

These services include catering and event planning. Effective marketing, efficient bookings, and customer relationship management are also essential.

Target buyer for an Event Venue Rental Business

  • Companies want to host conferences, training sessions, product launches, or employee events.
  • Individuals planning weddings, birthday parties, anniversaries, or other personal celebrations
  • Community organizations, clubs, or religious groups need space for events and gatherings.

How does Event Venue Rental Make Money?

  • Venue rental Fees: The primary source of income is the rental fees charged for using the event spaces, which can vary based on factors such as size, location, amenities, and peak/off-peak seasons.
  • Additional services: Charge for complementary services, such as event planning, catering, equipment rentals, and audio-visual support, can provide additional revenue streams.
  • Subscription fees: Some event venue rental businesses may offer membership or subscription programs in which clients pay a recurring payment to access exclusive event spaces.

13. Car Rental Business

Car rental businesses are popular among travelers, business professionals, tourists, and individuals who need temporary transportation. You can offer different car models to cater to various budgets.

New York, Silicon Valley, Las Vegas, and Amsterdam are the most profitable locations for car rental businesses. To take your business to the next level, you can consider offering bicycle, bus, or truck rental.

Target buyer for a Car Rental Business Business

  • Tourists, business travelers, and those whose personal vehicles are unavailable.
  • Individuals whose personal vehicles are being repaired or serviced need a temporary replacement.
  • Rideshare drivers or others who need a vehicle for short-term or gig work

How do Car Rental Business Businesses Make Money?

  • Rental fees: You can charge customers daily or weekly rental fees for the use of the cars.
  • Ancillary fees: Earn additional revenue from fees like late returns, fuel refill charges, and one-way rentals.
  • Vehicle resale: Rental companies will eventually sell off their fleet of vehicles, often at a profit, to make way for newer models.

Read also: Taxi App Development – a Complete Guide

Wrapping it Up

Any business idea requires a planned implementation to reap its benefits. If your execution needs to be corrected, you may end up cash-trapped. The best way to ensure that your unique rental business idea provides higher profit is to ensure you cover everything from budgeting, planning, digitization, and more.

There is no denying that the rental business is a profitable prospect at its core, but if you can combine it with a digital platform, the ROI will skyrocket. This is where you can leverage a rental app development service. It allows you to create a digital platform and interact with customers, enabling them to book services and make payments.

Want to know more about our rental app development services? Connect With Our Experts Now!

Mayur Panchal
Author
Mayur Panchal is the CTO of aPurple. He is passionate about tech trends, clone apps, on-demand app solutions, and innovations across various domains. He loves to share his expertise through engaging content and inspiring others to discover the future of the IT world.

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