What should I look at in a music store’s instrument rental fleet condition?

A rental fleet is stock that earns by being out. Begin with the register: instrument type, make, serial number, purchase date, current location and the person who holds it. Compare it with what is on the shelves and in the repair room, and ask about anything missing.

Inspect a sample. Look for worn pads, cracked cases, loose fittings, dents, damaged strings and anything unsafe or unhygienic. Ask how instruments are cleaned and checked between renters, and how often each is serviced. Repair invoices will show which ones cost too much to keep.

Ask who owns the fleet. Some instruments may be financed, leased or placed by a supplier. Some may be tied to a school program. Check with your lawyer what transfers. Look at the rental agreement and how it is enforced. How are late returns, loss and damage handled? Ask for the rate card and utilization by season. An appraiser can help with the condition and your accountant with how the fleet is carried in the books. Ask too about the customers: how many are schools, how many are families, and whether rentals often convert into purchases. A fleet that feeds later sales is more useful than one that only earns rent, and the records should show which kind this is.

Key takeaways

• Match the rental register to the instruments you can physically see.
• Inspect a sample and read repair invoices for the costly ones.
• Confirm which instruments are owned, financed or supplied by others.