Post by shukla on Oct 28, 2024 22:57:44 GMT -8
Due to the rise in prices for real estate and vehicles, the demand for sharing services has increased sharply. The rental business requires large investments, but many entrepreneurs have begun to pay attention to this niche. However, it does not always require large investments, because you can rent out not only apartments and cars.
Sharing is a modern form of online website development service rental. In the pre-Internet era, to rent something, you had to physically find the service or item. As a rule, things were rented for a long time.
Andrey Tuchkov , member of the board of directors of the National Investment Platform, highlights the conditions that facilitate the development of the rental business:
"The development of sharing is facilitated by:
- the rapid development of the Internet;
- growing economic instability;
- the reluctance of young people to be tied to one place"
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What is profitable to rent out
There are universal conditions that will help you understand whether a thing or service will be in demand. The first is the price. It should be an expensive product; it is always easier for a person to buy a cheap one themselves than to rent it. The second is the frequency of use. The less often you need a thing, the more reasonable it is to rent it rather than buy it.
We asked Konstantin Kalinov , CEO of Raddy, what is profitable and unprofitable to rent out now
“Real estate and transport are the most popular areas for the sharing business. However, I can say that this niche is already oversaturated. Many real estate agencies and car rental services cooperate with our platform. However, you can also rent out other goods:
1. Clothing. You can rent out not only wedding and evening dresses. There is a high demand for children's goods, jewelry, business suits.
2. Goods for the home and garden. People often enter queries on our site regarding the short-term rental of household appliances.
3. Tools. High-quality tools are not cheap, especially if they are rare. Buying devices for one-time repair work is impractical. Therefore, a company renting out tools can bring in a good income. A good example is the TekhProkat service, which has been posting ads on our site for a long time and is not going to close.
4. Computer equipment. Despite the fact that almost every home now has a computer, there is still demand for rental. Not everyone can afford powerful, high-performance equipment. Laptops are also often rented by people going on business trips. Renting also helps test a new model before buying.
5. Products for children. Not everyone wants to buy expensive things that they will not use for more than a couple of months. For example, young parents often rent electronic swings and scales for newborns.
6. Drones. Launching quadcopters is a popular entertainment. This idea is popular in large cities. I know many companies that have been successfully operating since the appearance of the first drones.
7. Bicycles. Business has prospects in large and resort cities. People consciously refuse cars in favor of environmentally friendly transport. Dozens of ads from bicycle rental services are regularly posted on our Raddy portal. The demand for their services is steadily growing.
8. Electric scooters. This transport has gained unprecedented popularity by 2022. Mobile devices easily bypass any traffic jams. They also help you keep fit. The niche still cannot be called oversaturated, so it is worth trying your hand in this area.
In addition to the goods listed by the expert, we have selected several other categories that we consider promising for renting.
•
Jewelry. Just like evening dresses worn for special occasions, many people also prefer to rent jewelry. Their price is high and they are rarely used. This means that they fully meet the conditions for successful rental of goods.
•
Snowmobiles. This is a seasonal product that will only be rented in snowy winters. To ensure that the business is profitable all year round, it is worth considering renting other products in the summer, such as kayaks or tents for outdoor events.
•
Photo and video equipment. People rent expensive cameras and video cameras, most often to test their capabilities and decide for themselves whether they need such equipment. In large cities, photographers and videographers use equipment rental to expand their creative capabilities.
•
Pet supplies, cages, carriers. Such things are most often needed when owners move or go on vacation. Sometimes carriers are needed if the animal is sick and needs to be transported to the doctor. Of course, you shouldn't open a rental store exclusively for pet supplies, but if your site offers various products for rent, you should pay attention to this category as well.
•
Musical instruments. This is probably the type of rental that we are most familiar with. In Soviet times, it was common to rent musical instruments while the child was studying at a music school. Little has changed in this regard now. Children still study music, musical instruments are still expensive, so it is easier to rent them than to buy them. Moreover, children's tastes are fickle: today they play the guitar, and tomorrow they prefer a drum kit.
•
Furniture and decorations for holidays. This category of goods is especially popular with holiday agencies. But here it is also worth considering the season, because people prefer to spend holidays in the summer. Although tables and chairs are needed not only for holidays, but also for business events that are held regardless of the season.
What is not profitable to rent out
First of all, this is something that is not in demand in your city. For example, in a small town it is difficult to find clients willing to rent an elite apartment or rent a sports car. Also, you should not rent out goods that are subject to accelerated wear and tear or require complex, expensive maintenance.
Pros and cons of the rental business
Like any business, the rental business has its strengths and weaknesses. Let's start with the pros.
•
Passive income. Of course, the rental business, like any other, requires investment and effort at the start. But once established, it works more or less autonomously. At least, it does not require the constant active participation of the owner.
•
Stable income. If you choose the right niche and rent out something that is constantly in demand, you can provide yourself with a stable income.
•
Diversity of directions. You can rent out almost everything. If you fail to select the most popular product categories the first time, you can always adjust the positions and increase your profits due to this.
The disadvantages of the rental business are worth mentioning separately.
•
High competition. There is high competition on the market for the most popular rental products, and it is not profitable to rent out less popular products. This should be taken into account when planning to start a rental business.
•
Long-term investments. To buy equipment, cars or things that will be rented out, you need significant investments that will not pay off soon. It will take time before you receive income, not everyone is ready to start a business on such terms.
•
Large investments. Creating a rental pool requires considerable funds.
Sharing is a modern form of online website development service rental. In the pre-Internet era, to rent something, you had to physically find the service or item. As a rule, things were rented for a long time.
Andrey Tuchkov , member of the board of directors of the National Investment Platform, highlights the conditions that facilitate the development of the rental business:
"The development of sharing is facilitated by:
- the rapid development of the Internet;
- growing economic instability;
- the reluctance of young people to be tied to one place"
Free tools for entrepreneurs
Download free financial report templates, discount calculators, step-by-step instructions and guidelines from PlanFact experts and earn more.
Get
Downloaded
>15,000 times
What is profitable to rent out
There are universal conditions that will help you understand whether a thing or service will be in demand. The first is the price. It should be an expensive product; it is always easier for a person to buy a cheap one themselves than to rent it. The second is the frequency of use. The less often you need a thing, the more reasonable it is to rent it rather than buy it.
We asked Konstantin Kalinov , CEO of Raddy, what is profitable and unprofitable to rent out now
“Real estate and transport are the most popular areas for the sharing business. However, I can say that this niche is already oversaturated. Many real estate agencies and car rental services cooperate with our platform. However, you can also rent out other goods:
1. Clothing. You can rent out not only wedding and evening dresses. There is a high demand for children's goods, jewelry, business suits.
2. Goods for the home and garden. People often enter queries on our site regarding the short-term rental of household appliances.
3. Tools. High-quality tools are not cheap, especially if they are rare. Buying devices for one-time repair work is impractical. Therefore, a company renting out tools can bring in a good income. A good example is the TekhProkat service, which has been posting ads on our site for a long time and is not going to close.
4. Computer equipment. Despite the fact that almost every home now has a computer, there is still demand for rental. Not everyone can afford powerful, high-performance equipment. Laptops are also often rented by people going on business trips. Renting also helps test a new model before buying.
5. Products for children. Not everyone wants to buy expensive things that they will not use for more than a couple of months. For example, young parents often rent electronic swings and scales for newborns.
6. Drones. Launching quadcopters is a popular entertainment. This idea is popular in large cities. I know many companies that have been successfully operating since the appearance of the first drones.
7. Bicycles. Business has prospects in large and resort cities. People consciously refuse cars in favor of environmentally friendly transport. Dozens of ads from bicycle rental services are regularly posted on our Raddy portal. The demand for their services is steadily growing.
8. Electric scooters. This transport has gained unprecedented popularity by 2022. Mobile devices easily bypass any traffic jams. They also help you keep fit. The niche still cannot be called oversaturated, so it is worth trying your hand in this area.
In addition to the goods listed by the expert, we have selected several other categories that we consider promising for renting.
•
Jewelry. Just like evening dresses worn for special occasions, many people also prefer to rent jewelry. Their price is high and they are rarely used. This means that they fully meet the conditions for successful rental of goods.
•
Snowmobiles. This is a seasonal product that will only be rented in snowy winters. To ensure that the business is profitable all year round, it is worth considering renting other products in the summer, such as kayaks or tents for outdoor events.
•
Photo and video equipment. People rent expensive cameras and video cameras, most often to test their capabilities and decide for themselves whether they need such equipment. In large cities, photographers and videographers use equipment rental to expand their creative capabilities.
•
Pet supplies, cages, carriers. Such things are most often needed when owners move or go on vacation. Sometimes carriers are needed if the animal is sick and needs to be transported to the doctor. Of course, you shouldn't open a rental store exclusively for pet supplies, but if your site offers various products for rent, you should pay attention to this category as well.
•
Musical instruments. This is probably the type of rental that we are most familiar with. In Soviet times, it was common to rent musical instruments while the child was studying at a music school. Little has changed in this regard now. Children still study music, musical instruments are still expensive, so it is easier to rent them than to buy them. Moreover, children's tastes are fickle: today they play the guitar, and tomorrow they prefer a drum kit.
•
Furniture and decorations for holidays. This category of goods is especially popular with holiday agencies. But here it is also worth considering the season, because people prefer to spend holidays in the summer. Although tables and chairs are needed not only for holidays, but also for business events that are held regardless of the season.
What is not profitable to rent out
First of all, this is something that is not in demand in your city. For example, in a small town it is difficult to find clients willing to rent an elite apartment or rent a sports car. Also, you should not rent out goods that are subject to accelerated wear and tear or require complex, expensive maintenance.
Pros and cons of the rental business
Like any business, the rental business has its strengths and weaknesses. Let's start with the pros.
•
Passive income. Of course, the rental business, like any other, requires investment and effort at the start. But once established, it works more or less autonomously. At least, it does not require the constant active participation of the owner.
•
Stable income. If you choose the right niche and rent out something that is constantly in demand, you can provide yourself with a stable income.
•
Diversity of directions. You can rent out almost everything. If you fail to select the most popular product categories the first time, you can always adjust the positions and increase your profits due to this.
The disadvantages of the rental business are worth mentioning separately.
•
High competition. There is high competition on the market for the most popular rental products, and it is not profitable to rent out less popular products. This should be taken into account when planning to start a rental business.
•
Long-term investments. To buy equipment, cars or things that will be rented out, you need significant investments that will not pay off soon. It will take time before you receive income, not everyone is ready to start a business on such terms.
•
Large investments. Creating a rental pool requires considerable funds.