How to Start a Beach Rental Company
Many people enjoy spending a day at the beach since there are many activities in which to partake. Some of these activities require special equipment such as a surfboard if you want to ride the waves or snorkeling equipment if you want to dive down to check out the bottom of the ocean. Since not everyone has the money to purchase this equipment and haul it to the beach, you can cash in by learning how to start a beach rental company.
Create a business plan. Determine the specifics of what you plan to rent out as part of your beach rental company since some people choose to rent out beach houses while others opt for surfing and snorkeling gear. Set the days and hours of operation as well as what seasons you're open. Decide what it will cost to start the beach rental company as well as how long you’ll need to sustain your business on your start-up funds before you make a profit. Include all this information, plus plans for marketing and staffing your company in your business plan.
Get funded. Seek out a small business loan by visiting with a bank or credit union representative in your community. Find out if you qualify for the loan based on your business plan and your personal credit history. To get low-interest loans specifically designed for small business owners just starting out, check with the Small Business Administration to learn if you qualify. Take on a partner with access to capital to start your beach rental company if you can’t qualify for loans on your own.
Register your business. Complete the form from the website of the Internal Revenue Service or contact them by phone at 800-829-4933 to register your business at the federal level by obtaining an Employer Identification Number. Talk to a representative from the department of revenue at your state and local level to learn what sales tax laws are applicable to your beach rental company. Fill out any forms to register with these departments and collect and pay sales tax if charged on the rentals you provide to beach goers. Obtain a local business license from your city hall to operate in your physical location, and ensure you get a food license later if you add on offering food and drinks to people at the beach as part of your business.
Obtain insurance. Contact local insurance representatives to discuss business insurance to protect your beach rental company. Get liability insurance to protect you in the event someone is injured in or around your facility while also obtaining property insurance to protect your facility in the event a hurricane, tsunami, fire or other natural disaster damages or destroys your business.
Find a facility. Look for a facility on or near the beach since this allows beach goers easy access to your business. If your company offers beach rental houses, buy different sizes as this allows your customers to choose the one that’s right for their needs. Rent or purchase a separate office space to house your records and from which to work on a daily basis if renting beach homes. If operating a business that rents beach equipment and supplies, find a location with enough space to display and store your products as well as manage your records and the financial aspects of your business.
Hire staff. Seek out employees who enjoy interacting with people and have great customer service skills to work in your beach rental company. Encourage them to become knowledgeable about the products and services you provide as this helps them rent the right equipment and keep earnings high. Consider hiring only temporary or seasonal staff to help you operate your beach rental company if you are only open during the summer season.
Promote your company. Create a website to highlight your beach rental company, and incorporate an online or phone booking system that provides customers an easy way to rent a beach house or beach equipment. Hang fliers in popular restaurants and hotels on and near the beach since tourists frequent these places during their stay. Make sure all rental equipment such as surfboards, beach umbrellas and snorkeling equipment has your company name and phone number on it in large type since this allows other beach goers to know where to go to rent the same equipment.
Grow your business. Consider expanding your beach rental company to offer food and drinks, since not all beach-goers bring their own with them. Include souvenirs and T-shirts if you are in a location frequented by tourists. Find instructors willing to teach surfing or snorkeling to people who are interested since this encourages them to rent the equipment for these activities from your business. Add additional beach rental properties to your business as it grows if renting houses or condos to individuals and families on vacation.