| Thu, 11/11/2010 - 6:19pm | |
| David Cox | We were discussing our equipment utilization during an upcoming anticipated downturn. We have never rented out our own equipment to outside business in the past. Has anyone done this? What issues have you run into? Any advice is appreciated! |
| Mon, 11/15/2010 - 8:22am | #1 |
| Jerry McHugh | You may have to charge sales tax to your customer and pay it over to your state. The taxes on equipment and rentals vary significantly from state to state. Be sure to check this out. Otherwise you could get hit with a substantial tax liability in a sales/use tax audit. |
| Fri, 11/12/2010 - 9:31am | #2 |
| Gregory Hauswald | David, I concur with the other comment. We have our customers sign a rental agreement, similar to what you might sign when you rent equipment from an outside vendor. We also make sure we have a proper insurance certificate and the value of the equipment is stated along with rental rates, etc. Customer is liable for damages beyond normal wear and tear. |
| Fri, 11/12/2010 - 9:19am | #3 |
| Dennis Rabe | If you decide to rent out your equipment make sure you talk with your insurance company or agent. By renting equipment out you and the insurance company will now have a lot more risk and your premiums may increase depending on how much renting you do. Also, we always had any company we rented our equipment to sign an indemnification agreement and provide insurance coverage listing our company as additional insured. Good luck. |