renting out your equipment

[Jason Miller]

I have a question about renting out equipment.

mainly about the insurance needed for this. I currently rent my hvx and a few other things out with no insurance, but I go with the equipment, and I find its a bit limiting. I know I could make more money if I just rented out the gear.

problem is my hvx was bought used. and pre that I'm pretty sure it was grey market, all my lights were bought on ebay, as was my crane, and my fluid head and stix, my dolly, while works really well was homemade.

even one of my p2 cards was bought on ebay. my M2 and ff was bought here on dvx.

basicly I have nothing new with papers.

are their any insurance groups out there that will cover my gear if damaged or stolen by or from a renter?

thank you
Jason Miller

 

[tumbleweed]

You should ask the renters to provide you with proof of insurance. This is a cert of insurance naming you as "additional insured" for a minimum of the value of your gear. You shouldn't need proof of "new" equipment - everything is "used" after it comes out of the box. If you rent to people who don't have insurance, you should ask for a deposit equal to value of the gear they are renting from you.

 

[taormina]

What tumbleweed said.

 

[Jason Miller]

wow, so does anyone carry their own rentel insurance? and have any of you been bitten in the ass by this? stolen lost or broken gear, with the insurance company refusing to pay out?

Jason

 

[mindzeye]

rental insurance cost just as much as medical insurance... i carried simple liability insurance for my videography business for several years and lost out big time. Any business related insurance will cost an arm and a leg. I would suggest maybe a cash deposit or a liability waiver for what you feel your equipment it worth. the more you rent it out the less and less the deposit can be considering if the rentals had already paid itself off.

 

[Luis Caffesse]

Ditto on what everyone here said.

I have coverage for my gear when I'm using it - but rental insurance to cover others taking it out would be counterproductive for me as it's WAY too expensive. This is exactly why many places require that the renter have proof of insurance before taking out any gear.

I would ask that the renters either have their own insurance (naming YOU), or leave you a deposit equal to the equivalent value of the gear. Of course, that's going to drastically limit the number of people that will be willing to rent from you - but that's the cost of lowering your risk.

if you make the bulk of your money off working with your own gear, as opposed to renting it out, I would seriously think twice about renting it out on its own.
Unless you are fully 100% covered wiht every rental, you are risking your own livelyhood by renting it out (plus there is the additional time involved with replacing the gear, etc).

Personally, I wouldn't rent out anything that I couldn't work without.

 

[Prodigi Pictures]

I rent my gear all the time...in fact, I created a rental company for it called Prodigi Rentals: www.prodigirentals.com

We've been renting for the past year and here is what I've learned...

1.) Without extensive paperwork in place your insurance is useless. We've assembled our paperwork by studying every major rental company on the West Coast and Chicago, borrowing their concepts and then having the paperwork assembled by a local attorney who made sure it complied with New Mexico law.

2.) Have them sign a credit card authorization form. This gives you the legal right to charge their card if they harm your gear. If they treat your gear with respect you'll never have to use it...if they return your gear damaged then you have a no-hassle method of replacing what was broken. This is particularly useful for the deductable on their project's policy.

3.) Verify their insurance. Some clients will fax you forged certificates with altered data from a previous shoot. Verifying the validity of their certificate takes about 10 minutes.

4.) Almost all clients damage your gear. It is inevitable. Most cause minimal damage (below $300.00.) Usually, it is not their direct fault...think about your own productions. Once you have a crew of five or more it isn't possible to monitor everyone. In situations like this I am extremely apologetic, sympathetic and conversational...as I charge the damage fee to their credit card. Most clients are more concerned about being chastised and villified than they are about paying for the damage. Guilting a client, exhibiting any sign of frustration or judgement is FAR more damaging to your relationship than politely charging them for the damage.

Occassionally, I've had clients who are reckless with my gear. One client lost, damaged and destroyed over $3,000.00 worth of gear. However, that kind of client is rare and that is what credit cards and insurance certificates are for.

I've always been incredibly careful with other people's gear and so I'm surprised what happens to mine...but, in the end it stays brand new because I maintain it well and charge anytime damage occurs (just like any other professional rental house.)

5.) "Dummy proof" your gear. I've rhino-linered a lot of my gear so it can handle minor abuse. The most common type of damage from a client is scuffing...and that isn't something you can charge for! If you rhino-liner everything you can, make sure everything is packed in Pelican cases. Show each client the best way to use the equipment to reduce the wear-and-tear significantly.

6.) Clean gear prevents damage. My gear goes to the client clean and in mint condition. This encourages the customer to treat it with respect. We used to rent some gear with superficial scuffing...and that gear was damaged far more quickly than anything else. My HVX200 has been rented for months at a time and doesn't have a scratch on it...I personally believe that because it looks new people subconsciously feel the need to be more careful with it.

7.) Invest a portion of what you are earning into the constant upgrading, repair and cleaning of your gear. Customers deserve clean, shiny, new gear with all the bells and whistles...that's why most of them rent! I've done this for the past year now and Prodigi Rentals has doubled the amount of gear it owns. Also, if a customer asks me if we have an item and we don't I tell them when we will be buying it. This helps them realize that our equipment inventory is always expanding.

8.) The paperwork trail is everything. If you do that right then you can spend the rest of your time on customer service. And customer service is EVERYTHING. Prodigi Rentals is a boutique rental company...the only way we compete with bigger companies is through customer service and the best prices in the country.