Let other people’s adventures be your source of income!
A love of exploring the fantastic outdoors in the seat of a three or four-wheeler is just what people need to get a little excitement, and you can help people find it. You’ll meet all kinds of adventurers and novices, from families, to professionals, to anyone. If you are searching for resources dedicated to how to start an atv rental business, you’ve come to the right place. But before you jump in to creating an atv rental business plan, here’s what you need to consider before you start your ATV Rental business journey:
The ideal place for renting ATV’s is a place with open space and back country recreational areas where the machines are been permitted nearby. Many ATV Rentals places use state parks through an agreement, or even family owned land. Check with your local federal or state agency which manages the region to learn what licenses or permits are needed to allow ATV riders in your designated area. If you’re trying to find a building to work out of, you’ll need to decide whether you will have your own garage for doing service and repairs, as well as an office space. You’ll require an automobile storage space that is covered to keep your vehicles in tip-top shape. The best place for this kind of business would be just off a highway, well away from major areas to keep your riders safe.
ATV Rental Business Insurance is mandatory to cover injuries, but a smart approach is to provide extra insurance to your customers, for an extra charge. This would cover collisions, damage, and any other troubles beyond what your base policy covers.
Be sure to explain the necessary deductible before the you charge them. However, if you choose to do so, you can automatically include it in their charge. If your client claims to already have insurance, request a copy of their coverage to affirm leases and rentals are also covered by it. A waiver may also be necessary to prevent legal troubles, lawsuits, and insurance disputes. If your clients refuse insurance altogether, they will need to sign a waiver making them legally responsible for all proceedings therein. Waivers are an included feature provided for free on the Rockon Recreation Rental platform.
Buying ATVs will be the most expensive thing you do. Begin your search with used ATVs in good condition to save you money. Start your business with the bare minimum, then increase the number in your fleet as demand increases. For example, you may receive requests for different kinds of vehicles, such as ones for children, double-seaters, and more. If you market to folks who will need to carry extra gear for excursion or hunting purposes, it can get even more expensive.
Our recommendation? Start with low cost vehicle, that you can rent for cheap to break into the market. If you look around, you will see most four-wheeler rentals start at $250 for 4-hours. Most people don’t want to pay that much. Come to the market with rentals at a fraction of that price, and you are sure to attract customers. Customers wont mind traveling if it will save them a hundred dollars.
Of course opening an ATV rental business to serve any sort of outdoor trail is great, but if you are offering business value to exchange for profit, you will want to launch it in a location that has the highest demand. Even if you need to drive a little farther to serve a larger market, it could be worth it. As they say, its better to have a smaller piece of a big market, than a large piece of a small market.
Check out this graph showing locations of ATV rental demand in America. You can see there is a lot of interest in the Northern States, but the opportunity is that there are basically very little operators in that area. If you swoop in with your ATV rental business with great prices, serving these underserved communities, it’s sure to take off.
Training your clients before letting them loose is the best way to prevent accidents, damage, and other troubles. You may need equipment to transport your fleet, or a rental service to do it for you. Additionally, leasing hitches and trailers means that you will be required to show clients how to unload the items. Delivering ATVs into the trail-head demands hiring and monitoring a seasoned team. So once you grow to that size, be sure you are teaching the safety protocols and have accountability in place for those that don’t.
If you are the only business in the area renting ATVs, you have more flexibility with pricing. However, of course, if you have local competitors, it becomes difficult. Rentals are based on time, type, and add-on equipment. Additionally, a deposit gives you leverage to get your equipment back or pay for damage caused by the client. You can choose to charge by the day, hour, or offer package deals. Should you lease or provide goggles, gloves or helmets, add these prices into their bill as well.
Atv rental businesses can be quite profitable. Let’s do some quick math to further explore this point. In a quick google search I am finding that a Can-am DS250 (a popular ATV rental vehicle due to its size and cost) runs used approximately $4,000.00. Let’s say you took a loan for this amount with no money down, so at 6% interest for 24 months would be $177/month.
Now, on average this vehicle rents in the range of $125/hour and $175/ 2Hours. The good news is that is rare if somebody wants to rent an ATV alone. Often times they come in couples (2 atv rentals at the same time) or groups. Those groups are generally in the range of 5-10 people at once. They often ask if they can fit two people on a single rider ATV, and the answer is always no. However, if they want to rent a two-seater they can, but those are generally double the rental cost so it usually makes sense to the customer to just get two single rider ATV’s.
With that said, if you served one party of two people per month (which would be $125 x 2 = $250), then you would already be profitable for that month ($250 – $177 = $73). And if you were active with you marketing strategy, and captured a good amount of market share at a location with good demand, than its safe to assume that you could keep the rental going nearly all hours of the day every weekend (8 hours a day X 2 days X $125/hour X 2 rentals per hour) X 4 weekends in a month = $16,000 / month, with just a $177 loan payment for two years. And this does not include any during thee week in this calculation, so you you could get the weekdays to yourself! So, do you think this is profitable enough? I think so!
Of course there is maintenance and gas and maybe delivery expenses to consider, however these would not offset your monthly revenue all that much since ATV’s don’t consume fuel like passenger vehicles do.
The only thing, from experience that I can share, is that you will need to consider seasonality. Seasonality is the peaks and valleys of demand throughout the years. This is important because you will want to save enough profit to carry your expenses through the slower months.
If you choose the route of renting your own ATV’s as a side business, getting the world to learn about your new rentals is always the hardest, and most expensive question. Where do you put your money so that they right people see it at the right time? What mediums should you use? How can you get to market quickly? What’s the short term strategy, and what’s my long term marketing strategy? Should I use tracking software? Booking software? How do I build my website? How do I do digital waivers?
These are all valid questions for newly minted rental business owners, and the good news is; you don’t have to worry about it.
Rockon Recreation Rentals has you covered with a comprehensive marketing and booking software for ATV rental businesses. Rockon Recreation Rentals was created to help renters like you reach your market quickly and easily by giving rental operators access to the tools, and to the stream of consumers who are searching for things to do.
Simply sign up your licensed and insured ATV Rental operation for free, build, monitor, and optimize your listing, and watch your revenue grow on your Rockon Recreation Rentals Dashboard.
Provide amazing service, at a good rate and the wealth will slowly begin pouring in! Are you ready?
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