Advice on Starting a Furniture rental business

[cabbagemint 0]

I’m looking at starting a furniture rental business, whereby I would by items of furniture (e.g sofa set) and then rent to someone. I have already found a first customer who would do this, however I wanted to ask where I would stand legally with this set.

Please see example of detail below:

Buy Sofa Set for RM2000 / rent to a customer for RM60 per month for a set period of time, and then when they are finished with the furniture items, simple return back to my storage place. I would own the items, and the customer would simply be paying for the use of this, no payments towards owning these.

Any advice / comments would be much appreciated. Thank you.

[meesuhaimee 0]

The first problem I foresee is that after you've rented the sofa to your first customer, you either have to recoup the entire cost or you're then renting out second hand furniture - which is vastly less attractive.

Given that almost any credit worthy individual can buy an interest free sofa from a variety of outlets, what's your USP?

[BBphire 0]

Agree with above, do people still rent TVs ?? What would be deemed normal wear and tear upon return, renting to tenants or house owners ??, security bond/deposit ??, delivery and collection charges..Insurance. There are firms that rent furniture but that is aimed at film or Tv companies, show homes, event companies etc etc.

[piechop 0]

Havent seen this kind of business in kl.... maybe could work since people are more inclined to rent than buying new furniture with current economic situation.

[somboi 0]

28 minutes ago, piechop said:

Havent seen this kind of business in kl.... maybe could work since people are more inclined to rent than buying new furniture with current economic situation.

Usually we will rent a fully furnished house or room? Also isnt there hire purchase for everything nowadays?

[lucky123 0]

You need to strategize the business plan, do market research and find out in your area if there is actually customer that is going to pay for this services. Pricing also plays important part right now. Dont overcharge when you are just starting.

Went for a marketing and branding masterclass by Mr. Long Yun Siang. Before this i had business plan but didnt go on with the business idea... realized that it couldnt make profit. Instead cramming new ideas, takes sometimes tho but it worth it.

You can check this out: https://roar-point.com/marketing-branding-masterclass/

 

[fukisan111 0]

Suppose someone rents the sofa and brings it back after 3 months. You would have to pay for cleaning and fumigation. Probably cost you more than the rental fee.

Or returns after a year and it’s in such poor condition you have to write it off. You could ask for a cleaning deposit but if I could afford that, I could afford to get a sofa from a second hand shop.

[cabbagemint 0]

3 hours ago, somboi said:

Usually we will rent a fully furnished house or room? Also isnt there hire purchase for everything nowadays?

After quite some searching i found out that some house are furnished and some is not.

I will be offering portable furnitures too. I am thinking that some student may want to rent tables, lamp. Or some people on a business trip, long business trip that will stay here for 3 month that need to use, office desk.

16 minutes ago, lucky123 said:

You need to strategize the business plan, do market research and find out in your area if there is actually customer that is going to pay for this services. Pricing also plays important part right now. Dont overcharge when you are just starting.

Went for a marketing and branding masterclass by Mr. Long Yun Siang. Before this i had business plan but didnt go on with the business idea... realized that it couldnt make profit. Instead cramming new ideas, takes sometimes tho but it worth it.

You can check this out: https://roar-point.com/marketing-branding-masterclass/

 

Oh my, i guess i really need to make some more searching to make sure this works. How much is the course price?

15 minutes ago, fukisan111 said:

Suppose someone rents the sofa and brings it back after 3 months. You would have to pay for cleaning and fumigation. Probably cost you more than the rental fee.

Or returns after a year and it’s in such poor condition you have to write it off. You could ask for a cleaning deposit but if I could afford that, I could afford to get a sofa from a second hand shop.

I read some where they make you sign a contract which stipulates all aspects of the condition of the item upon return.

The company inspects the item upon pick-up, takes photographs, and deducts anything in breach of the contract from your deposit

[lucky123 0]

9 minutes ago, cabbagemint said:

After quite some searching i found out that some house are furnished and some is not.

I will be offering portable furnitures too. I am thinking that some student may want to rent tables, lamp. Or some people on a business trip, long business trip that will stay here for 3 month that need to use, office desk.

Here some tips, you could make package for students since they dont have reliable source of income.

Also for business you would need guide from interior designer since they are quite particular about the type of materials the furniture they are going to use.

13 minutes ago, cabbagemint said:

Oh my, i guess i really need to make some more searching to make sure this works. How much is the course price?

For 1 pax is about RM3.8k, for 2 pax is much cheaper... but u may want to check the instructor books first... Let’s Do This, Rethink your Marketing Questions and Answer... good content.... plus he is a master of Marketing & Branding, well known in several south east asian country since he have tutor businessman in Singapore, Indonesia also Taiwan.

[fukisan111 0]

20 minutes ago, cabbagemint said:

I read some where they make you sign a contract which stipulates all aspects of the condition of the item upon return.

The company inspects the item upon pick-up, takes photographs, and deducts anything in breach of the contract from your deposit

Thats fair. Also fabric furniture such as sofa could be pretty expensive to maintain, so u need to find out possible problem caused by renting and plan to tackle those problem head on. Probably annual inspection.