Renting out equipment has become very popular among many industries, such as the construction industry and even the medical industry. However, with this popularity, rental equipment faces one major problem—theft.
Sometimes, rental equipment gets stolen after being sent to clients or may be stolen by the clients themselves. In fact, in the case of construction equipment rentals, 75% of equipment never makes it back to the rental company. Naturally, stolen rental equipment can lead to many problems for both the client and the rental business.
In this blog post, we’ll take a look at how the theft of rental equipment can impact a rental business and how rental equipment tracking software can help prevent equipment from being stolen.
The impact of stolen rental equipment on rental businesses
Financial loss
When a piece of equipment gets stolen, it will need to be replaced and this will be a financial loss for the rental business. Insurance claims and legal proceedings can also cost rental businesses significantly.
Additionally, if equipment is stolen before it reaches the client, it could negatively affect the rental business’s reputation and lead to revenue loss.
Operational disruption
The rental business will need to allocate some of their valuable resources and time to deal with the stolen equipment and this will slow down their operations and affect the business’s reputation and brand image.
Loss of competitive advantage
Losing equipment to theft means that a rental business will have fewer available equipment in their inventory and this can cause them to lose their competitive edge. Also, when word gets out that such a theft has occurred, competitors may take advantage of the situation and convince customers to turn to them.
Losing the competitive edge can strip the rental business of any growth opportunities and prevent it from growing its market share.
Business viability
Frequent thefts can affect the long-term viability of a rental business. Over time, these thefts can reduce the business’s profitability, weaken its financial position, and damage its brand equity.
Employee morale
Stolen rental equipment could impact employee morale. Employees may feel like they failed to prevent the theft from happening or may feel pressured to have to go through additional administrative activities to recover the stolen equipment. This can lead to employees becoming stressed out and less productive.
How rental equipment tracking software can help prevent theft
Now we have a clear idea of how the theft of rental equipment could potentially impact a rental business. Let’s take a look at how rental software can help prevent these thefts from happening:
Real-time location tracking
Modern rental software uses GPS tracking software to see where their rental equipment is in real-time. From the moment it leaves the company to when it arrives in the client’s possession, the software will show the whereabouts of the equipment. For example, if a client tries to make off with the equipment, the rental business will notice that the equipment is going to an area it shouldn’t and they will immediately contact the client or the proper authorities.
Geofencing capabilities
This feature creates virtual boundaries around certain geographical areas. If the rental equipment moves beyond the boundaries, it could mean that the equipment is being stolen. The software will immediately notify the client and the rental business if the equipment crosses these boundaries so that the business can take proactive steps to prevent the theft.
Like in the previous example, if a client tries to steal the equipment, the geofencing capabilities of the software will notice if the equipment crosses a geographical boundary that it shouldn’t cross and notify the rental business immediately.
Usage monitoring
Tracking software can give rental businesses insights into the usage of rental equipment. It keeps an accurate record of how many hours the equipment was used, at what time of the day it was used, and how often it was used. If the software notices any anomalies in the usage patterns of the equipment, it will notify the rental business so that it can identify potential thefts.
Aside from detecting theft, this software can also be used to see if clients are misusing the equipment and put a stop to it.
Historical data
Rental equipment tracking software stores historical data about rentals and clients. If the rental business suspects that their equipment is being stolen or being used without authorisation, they can go through this data and look for odd usage patterns and suspicious activity that could indicate theft.
With this proactive approach, rental businesses can take preemptive measures to prevent rental equipment from being stolen.
Insurance premium reductions
When a rental business has good rental tracking software in place, insurance companies may offer reductions on insurance premiums. Most of the time, insurance companies offer reductions like this when they see that the rental company has taken measures to protect their property.
Invest in rental equipment tracking software today
The theft of rental equipment is nothing new in the rental industry but it can have major repercussions for rental businesses. However, by implementing rental software with equipment tracking capabilities, rental businesses can breathe a sigh of relief knowing that their assets can be closely monitored and thefts can be prevented.
Get in touch with a rental software provider and experience the many advantages of rental software solutions.
FAQs
How long does it take to install rental software?
Installing rental software can take from a few days to several weeks depending on how big the rental company is and how difficult it is to implement the software into their current systems.
Do rental businesses need to change their current software to accommodate rental software?
No, modern rental software is designed to integrate seamlessly with a company’s existing software, like accounting tools, saving them from spending time and money on procuring new software.
Can data gathered by rental software help in recovering stolen equipment?
Yes, it can. This data can be given over to the authorities so that they can use the data in their investigation into the stolen equipment.