Turning Idle Construction Equipment into Profit
For many construction firms, managing equipment efficiently means balancing fleet size with project needs. But even with careful planning, a significant portion of equipment sits idle, sometimes for weeks or months at a time. Industry research estimates that up to 35% of construction equipment is underutilized, costing companies millions annually in lost value.
Many construction companies already rent internally, charging projects for the use of company-owned equipment. But what if that model could be extended? Instead of paying outside rental companies, subcontractors and other contractors could rent equipment directly from your fleet.
Several RentalResult clients have already implemented third-party rentals within their existing workflows, using the same system they rely on for equipment management. The result? A 20-40% increase in equipment ROI without expanding their fleet.
Why Construction Companies Are Exploring Third-Party Rentals
A growing number of construction companies are actively looking for a way to rent their equipment externally, not just to their own projects, but to subcontractors and other businesses in need of temporary equipment. Many companies already have a well-established process for managing internal rentals, but when they consider extending that model to third parties, they run into operational roadblocks.
One large construction firm recently began looking for a solution to manage third-party rentals after recognizing the potential for new revenue. Their leadership team saw that a significant portion of their fleet sat idle even while subcontractors on their jobsites were renting similar equipment from outside providers. It was clear that renting their own equipment externally could create a substantial financial benefit, but they lacked a system that could handle it efficiently.
Beyond simply tracking rentals, they needed a way to manage the logistical and financial aspects of external rentals, including pricing structures, invoicing, contract terms, and insurance requirements. Their existing tools weren’t built for that level of external rental management, making it difficult to take full advantage of the opportunity.
Additionally, they realized that third-party rentals wouldn’t just be an added revenue stream, it could also help them justify future equipment investments. By renting externally, they could maximize utilization rates across their fleet, which would give them data-driven insight into which equipment types were in highest demand. This would allow them to make smarter purchasing decisions, ensuring that any new investments would generate revenue both internally and externally.
For this company, the biggest challenge wasn’t deciding whether third-party rentals made sense, it was finding a way to make it work without disrupting their existing operations. They needed a solution that would let them manage third-party rentals as easily as they already managed internal ones, without adding a layer of complexity. That’s what led them to RentalResult.
The Financial Impact of Renting Construction Equipment to Third Parties
Companies that have started renting externally report measurable benefits. By keeping their fleet in active use rather than sitting idle, they can increase revenue while offsetting the costs of ownership, maintenance, and depreciation.
One of the biggest advantages of third-party rentals is that they do not require additional fleet investment. Construction companies can generate additional revenue by leveraging their existing assets, thereby enhancing return on investment without needing additional capital expenses. This allows companies to be more strategic with fleet decisions, purchasing equipment with the confidence that it will be fully utilized, even when it’s not needed on internal jobs.
For firms that rely on external rental providers for certain equipment, third-party rentals also create a new opportunity to bring more rental activity in-house. Rather than subcontractors renting from outside companies, they can now source equipment directly from the company’s fleet, keeping that revenue internal.
How RentalResult Clients Can Start Renting Externally
Enabling third-party rentals is a natural extension of the existing workflow for companies already using RentalResult. The same system that manages internal rentals can also handle external rentals, including equipment tracking, rental agreements, invoicing, and compliance.
One of the biggest concerns companies have when exploring third-party rentals is the complexity of managing the process. With RentalResult, companies can:
- Track which equipment is available and ensure utilization is optimized
- Automate rental agreements and billing, reducing administrative workload
- Manage customer profiles, pricing structures, and rental terms within the system
- Ensure compliance with insurance and liability requirements
This means that companies don’t need to add new software or significantly change their processes—they simply expand how they are using the tools they already have.
Hear From Industry Leaders Who Have Already Made This Shift
At the 2025 Wynne Systems User Summit in Tempe, Arizona, executives from Mortenson Construction, Messer Construction, and BAM Site Solutions will share their experience implementing third-party rentals, including the steps they took to make the transition, the challenges they encountered, and the financial impact they’ve seen.
For RentalResult clients considering third-party rentals, this is an opportunity to hear directly from companies already doing it.
Register for the 2025 Wynne Systems User Summit
Next Steps for RentalResult Users
For companies already managing rentals internally, third-party rentals represent an opportunity to increase revenue without significant operational change.
Many firms have idle equipment that could generate revenue, the only missing piece is the process to rent it out. Since RentalResult already provides the framework for managing rentals, enabling external rentals is a straightforward way to maximize equipment utilization and fleet profitability.
Companies interested in making this shift can start by:
- Watching our webinar: Unleash Hidden Rental Revenue to see how companies like yours have expanded into third-party rentals.
- Attending the User Summit: Learn directly from companies that have already done this.
- Talking to your Customer Success Manager: RentalResult is already equipped to handle third-party rentals, and we can help you implement it efficiently.
If your equipment is sitting idle, this could be the next step to maximizing the value of your fleet.
