Rental Rate Calculations for Gear

craigbowman

craigbowman

Veteran
How do rental houses calculate daily rental rates on various types of equipment? Is it a percentage of the retail value? ie. 5% or 10% or something?
 
Base price, demand, depreciation, upkeep, typical life-span of equipment, what other local houses are charging, room for profit, etc.

One thing you will find is if you build a relationship with the a rental house they will put together really good packages for you well below the standard rate. Their stated rate is usually just the starting the point for negatiations (your milage may vary).

cheers
 
Actually in my area, there are no local rental houses for a lot of things like stabilizers, cranes, track dollys, studio dollys, etc.

I have been recently accumulating this sort of gear for an upcoming production. In the meantime I have been approached by no fewer than 6 local professional video producers inquiring if I would be interested in renting stuff out when not in use. These are all well respected and solid companies.

So now I am trying to determine what rates to use, insurance issues etc. and then decide best course of action.
 
Wabbit is right about list price and actual price. No one really pays list price most of the time - it's just a starting point. Generally I've been told (I've been working at a small rental shop) that you're daily rate is normally about 1% of the full cost of the item brand new. Though if your items don't go out very often or on rarer things that aren't going to be rented that much you generally have to make it higher than 1%.
 
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