• Don't miss out on all the fun! Register on our forums to post and have added features! Membership levels include a FREE membership tier.

Snowmobile rental business??? Insight, Warnings, Rules?

P

PowderMiner

Well-known member
Feb 6, 2008
836
308
63
Snohomish-Plain, Washington
What are the ins-and-outs of the snowmobile rental business?

Are the sleds depreciable toward the income?
Fuel, Oil, Parts, Tow Vehicle, Trailer?

How does the insurance work?

Liability?

Manufacturer Warrantee? Void on rentals?
Price discount for multiple purchase?

Not looking for big profits, just some tax breaks and extra sleds around with some cash flow for the trouble.
 

sdsnocop

Well-known member
Premium Member
Feb 3, 2009
1,440
2,191
113
Hot Springs, SD
I cannot offer any financial advice but I can offer what to expect from the rental public. I work as a snowmobile patrol officer in the Black Hills. There are 5 rental companies offering a total of 150-200 sleds all together. Most are trail sleds 1-4 years old. Most are 550-570 fans plus some 660 and 500 4 strokes. One offers 1000cc 4 srokes and one has everything from 440cc - 1000cc 2 strokes. One thing I see is most renters have little to no experience on a snowmobile or in many cases experience with snow period. Some have difficulty finding there way on a marked trail with a map. Many do not know how to get themselves unstuck and many cannot change a plug or belt. Rentals account for 75% of the accidents I investigate and a high number of search and rescue calls I receive and the Black Hills are tame in comparison to the big mountains. If a rental sled breaks down (minor or not) or if they cannot get it unstuck it gets left where it sits, many times they have difficulty explaining where it was left.

Some specific advice:

-Stay with the 600cc range of sleds. Most are too inexperienced to handle anything larger. Usually an experienced rider rents because his broke down or he could not trailer to your location.
-Do not rent anything that will take them into the backcountry farther than you are willing to retreive.
-If you do not have a well marked groomed trail in your area I would consider sending your rentals out with a guide.
-Have a thorough check in and checkout procedure. In many cases renters will deny they caused damage to the sled.
-Rent as new of a sled as possible and keep a rigorous maintenance and inspection schedule. I have seen rental companies keep rentals too long or are too old and their reputation suffer due to continual breakdowns. I have rental companies still renting sleds from the 90's or sleds previously used by other rental companies.
-Be sure your sleds are properly licensed and all safety equipment working. If you want to see an extremely angery customer, watch the one comming through your door with a ticket in hand.

Rental companies serve an important need in many areas. It is responsible for starting many to get into the sport of snowmobiling. I see numerous families having loads of fun. However the prospective rental company needs to know what they are getting into and what to expect. I hope this helps.
 
M

mtn_rider08

Well-known member
Dec 17, 2007
420
48
28
Prineville, OR
I would also like some information about the rental business, as I just found one for sale. Seems the SDSNOCAP had some good advice.
 
Premium Features