HOW TO PRICE YOUR RENTAL ITEM
There is no single “correct” rental price, but a good starting point is to consider the item’s value, condition, and what similar items rent for locally.
As a general guide, some owners choose to list as:
- New or near new items around 8-10% of their recommended retail price per day
- Lightly used items at around 7-9% of their recommended retail price per day
- Well used items at around 5-7% of their recommended retail price per day
Noting that a Weekly rate would be the day rate multiplied by seven (7).
Actual rental pricing varies significantly depending on location, seasonality, item type, condition, demand, competition, and renter behaviour.
RENTAL PRICE CONSIDERATIONS
Replacement value
More expensive items generally command higher rental rates.
Condition and age
Newer items can typically attract higher prices than older items with visible wear.
Local demand
Items that are in high demand or difficult to access locally may justify a higher price.
Commercial hire rates
Check what equipment hire companies charge. Many peer-to-peer listings are priced considerably lower than commercial hire rates.
Maintenance and wear
Remember that each rental contributes to wear and tear, cleaning, maintenance, and eventual replacement costs.
What is a Security Deposit?
A security deposit (also known as a bond) is an amount authorised or held against a renter’s payment method before the rental begins. It is designed to provide additional security for item owners in the event of damage, loss, theft, late return, or other breaches of the rental agreement.
The security deposit is not a fee and is not charged if the item is returned on time and in the same condition it was provided.
As a general guide, many owners choose a security deposit of approximately 25% or more of an item's current retail replacement value for lower-risk items. Higher value, specialised, or more damage prone items may warrant a higher deposit.
Owners remain responsible for determining an appropriate security deposit based on the specific risks associated with their item.
What is an Insurance Excess
An insurance excess is the amount a renter may be required to contribute if an insurance claim is made following approved damage, loss, or theft of a rented item. Think of the excess as the renter's upfront contribution towards the cost of a claim.
If a rented item is damaged, lost, or stolen and an insurance claim is approved, the insurer may cover some or all repair or replacement costs, subject to the policy terms and conditions. The renter may be responsible for any applicable excess, while the owner may receive the benefit of any insurance settlement, subject to the policy terms and claim outcome.
Suppliers are responsible for determining whether they require insurance for their equipment and for maintaining any insurance they consider appropriate. ShareHire does not verify, provide, or guarantee the existence, adequacy, or suitability of any insurance held by users.