25 March 2008
Damage waivers are essential for rental businesses, was the consensus of the panel. Handy Rent's Michael Miller says damage waivers are an important income source and recommends that all stores have it at a level of 10 percent or more, but never less.
“Your revenue should come close to covering the cost of the repair parts in your company. If it falls short, take a look at the age of your equipment, and start reinvesting in more new equipment,” he says. “A small percentage from each rental has a good effect too, in that it stops arguments at the counter about who is at fault for every little piece of damage/breakage.”
Jeff Lignugaris at Northside Rental Tools says its damage waivers are 10 percent. He says the company has carried them for 25 years and that it has been an important source of revenue since. “A damage waiver is absolutely industry standard and everyone should charge it,” he says.
Modern Equipment carries them and the company's Chris Pera states that if sold properly, it can be a win/win for both parties involved, serving the customers well and acting as a source of income for the rental company.