What should I ask about a hardware store’s rental equipment and its upkeep?

Rental equipment looks like easy money until it breaks. Ask for a full list: each item, when it was bought, how often it goes out, what it earns and what it has cost in repairs. Pieces that are always out are valuable to the shop; pieces that sit in the back are a question. Walk the rental area and examine the equipment closely, including the older items.

Maintenance is the heart of it. Ask who services the gear, how often, and whether there is a log for each piece. Check how items are cleaned and tested before going out again, and how the shop handles an injury or breakdown at a customer’s site. Ask about any safety instruction given to renters.

Then look at the money and the obligations. Find out how deposits are taken, how damage and late returns are charged, and how many disputes there have been. Ask which items are owned outright and which are leased or financed, since those loans and lease payments may pass to you. Ask your accountant how rental income and depreciation appear in the statements, and ask your insurer about cover for rented goods.

Key takeaways

• List each rental item with age, condition, repairs and earnings.
• Inspect the equipment yourself and read the maintenance logs.
• Ask how damage, deposits and late returns are handled.
• Confirm which items are owned, leased or financed.