Do you have some extra furniture lying around your house that’s just gathering dust? With the soaring demand for affordable rental options, now is a great time to cash in on this emerging trend. You don’t need to be an interior designer or own a large space – with furniture renting made easy and accessible for almost anyone, you can make extra money quickly by leveraging any excess furniture you already own and setting up your own rent-ready business!
Is renting furniture profitable?
How profitable are furniture rental businesses? The Furniture rental business has grown 1000% worldwide over the last three years and is estimated at 5 to 8 billion. This means there is plenty of room for growth and increased profitability for entrepreneurs looking to make smart investments in this growing market. Furniture rental businesses offer a great opportunity for short-term returns with the potential to reap even bigger rewards in the long run.
List the types of furniture you have to rent.
There are several types of furniture to consider when considering a furniture rental business. If you have different types of items in your inventory, you can categorize them to make it easier to choose from. These include
1) Home furnishings
Like Modern living room furniture, Couches, Sectional Sofa, Sleeper sofas, Table, and Chair, Coffee tables
2) Office furniture
Such as Desks and Filing cabinets, Coffee table
3) Bedroom pieces
Such as Beds and dressers, Pillows, Nightstands
4) Outdoor items
Like Patio sets, grills, Deck chairs, Benches, and Umbrellas
5) Specialty items
Like gaming systems or musical instruments.
Make sure the furniture is clean and ready for rental.
Before getting started, ensure the furniture you rent is clean and presentable. You’ll want to give it a good dusting, vacuuming, or steam cleaning if necessary. If there are any stains or odors, use specialized products to remove them quickly and effectively. Additionally, inspect all pieces for any signs of wear and tear that may need to be addressed before renting them out. This will help you ensure your customers’ safety, quality, and comfort and maximize your furniture’s rental potential.
Understand the scope of your rental business and the local laws that might apply.
Before diving into the furniture rental business, it is important to understand the scope of your business and any local laws that may apply. Depending on where you live and operate, there could be zoning laws that limit or prevent certain types of businesses from operating. You should also check with your local government to see if you need to obtain any special licenses or permits before starting your business.
Ensure proper insurance coverage for your rental business.
It’s important to ensure your furniture rental business is properly insured in case of any accidents or damages caused while renting out furniture. This includes liability insurance, which will cover you if someone gets injured while using the furniture you rent out, and property damage insurance, which would help pay for any repairs that need to be done after an incident. Research and invest in insurance coverage to protect your business from potential risks.
Assess the value
Once you have established the scope of your business and obtained the proper insurance coverage, it’s time to start assessing the value of your furniture and consider how much you should charge for rental. Evaluate your furniture’s condition, any damages present, and how long you expect it to last before needing repairs or replacements. Using this information, you can determine a fair rental rate for each piece of furniture.
Research market demand and pricing for similar items
Before setting a price for your rentals, research what other businesses in your area charge for similar products. This will help you balance out the cost of the rental with the value you can offer. Understanding the market demand and pricing for similar items is also important. This will help you understand your area’s potential customer base and how much they will pay for a rental item. Consider factors like seasonality when setting your prices and ensure a competitive advantage over other providers.
Pricing
Determine a pricing structure that works for both you and potential renters. Ensure to include rental periods, late fees, and any additional services you offer, such as installation or repair. It’s important to ensure that your pricing structure is in line with the market rate for similar items so you don’t drive away potential customers with too high of prices.
Create an online listing with clear photos of the furniture.
Once you’ve researched the market, it’s time to create an online listing for your rental business. You’ll want to include clear photos of each piece of furniture with detailed descriptions that accurately reflect the condition and features of the item. Include key information like price, delivery fees, and availability in your listings so potential customers can easily find the information they need. Additionally, ensure you include any policies or restrictions that customers should know before renting.
Set up a contract and payment system for renters.
Before renting furniture to customers, you must set up a contract and payment system. This should include the rental terms, such as what items are included in the rental, how long it will be rented, and how much it will cost per rental period. You’ll also want to decide what payment methods your renters can use. If possible, offer multiple payment options such as credit cards, bank transfers, or cash. Finally, you’ll need to consider any fees associated with the rental and set these out in the contract – this could include late fees if payments are not made on time or a cleaning fee at the end of each rental period.
A rental management software might help.
Growing bigger, you may consider using rental management software online to help manage your business. This will allow you to keep track of all rentals and customers in one place, streamlining the process of collecting payments and managing inventory. It can also help automate processes like emailing contracts or invoices and tracking customer data for future marketing campaigns.
Have a comprehensive agreement.
Draft a comprehensive agreement between yourself and the renter to protect both parties’ interests. This should cover items like damage or loss of furniture, cleaning fees, and any applicable late fees. Be sure to include a description of each item in the contract to avoid confusion over what is being rented out. Additionally, outline any penalties for non-payment or not returning the items on time.
Advertise your rental with flyers or online postings.
Once everything is ready, it’s time to start advertising your rental business. You can do this in various ways – creating flyers and placing them in local businesses or online postings on social media. Ensure all your postings highlight the benefits of renting with you, such as price, convenience, and availability. This will help draw attention to your business and encourage customers to rent with you!
Get creative
Get creative with renting out your furniture – consider hosting a mix-n-mingle event where guests can enjoy cocktails while perusing your pieces. This will help create a buzz and promote your rental business in a fun and unique way. You can also use the event to create a customer database for future marketing and promotions.
Offer themed packages
Sometimes it’s difficult for customers to choose the right furniture for their event. Consider creating themed packages with multiple items like tables and chairs, decorations, or other accessories to make things easier. This will make it easy for customers to pick the perfect package for their occasion without searching through individual items. Here are some examples:
1) Game night set
You can offer a combination of items for a peaceful game night event. Like Living room armchairs, accent chairs, shelving units, and sectional sofas.
2) Modern style theme
If you have furniture with a modern style, this is an ideal theme for customers who want to give their space a contemporary look. Include ottomans, round tables, and standing chairs in your rental selection.
3) Minimalist style
For a minimalistic look, offer items like sideboards, media cabinets, and low-profile sofas. These pieces will help customers create a clean, uncluttered look in their space.
4) Outdoor furniture theme
With the right furniture selection, you can also offer an outdoor rental package for customers who want to enjoy the sunshine! Consider sun loungers, game tables, garden seating, umbrellas, and side tables.
5) Contemporary style
If you have furniture with a contemporary style, offer this theme to customers who are looking for something modern and sleek. Include entertainment centers, side tables, and accent chairs in your rental selection.
6) Traditional way
For those who prefer a more traditional look, offer furniture like armchairs, coffee tables, ottomans, and shelving units. This theme will help customers create a classic and timeless feel in their space.
B2B Partnership
Look into partnering with local businesses to create a package offer for larger events or furniture rental needs. This could include hotels, restaurants, and event venues that require high-quality furniture rentals. Creating these partnerships will help you increase your exposure and reach a whole new client base.
Provide stellar customer service.
Last but not least – provide excellent customer service!
Final words
With the right preparation and understanding of what’s required for a successful rental business, you can start to make money with furniture rentals. Be sure to research the market, plan your pricing structure, create an online listing, set up payment systems, draw up rental contracts, advertise effectively, get creative with marketing campaigns, and explore B2B partnerships. Doing all this will help to ensure you have a successful rental business!