Knowledge Center

Rental

Rental, or renting, is a contractual trade where a payment is made for temporary use of goods or services owned by another party. If something is rented for a period exceeding a year it is called leasing.

A rental process may result in

  • Rented goods for a short period.

  • Rented goods for a longer period (leasing).

  • Rented goods eventually being redeemed (permanent sale).

The main reasons for someone deciding to rent rather than purchase may be the lower financial risk, insufficient liquidity, when certain goods are only needed for a short period or when one wants to avoid maintenance costs. The largest rental industries involving rental of goods and/or services include transportation (cars, motorcycles, boats), real estate (houses, apartments, industrial buildings) and specialized tools.

The tasks relevant for a rental business may include

  • Defining the product range - The range of products must be defined so the company can have complete overview of current stock.

  • Receive and process customer requests - The requests from customers must be processed and followed up.

  • Complete orders - Customers will place orders continuously which must be processed and completed.

  • Shipping goods - Confirmed orders will result in a need for shipment of the goods from the warehouse. The logistics need to be followed up.

  • Invoicing - All goods rented out must be invoiced accordingly. This also applies for goods that may have been.

  • Deviation handling - Goods returned from customers must be re-entered into the warehouse, with the accompanying logistics.

  • Pricing of the goods - All goods must have a price, or prices, which needs to be defined and entered.

  • Follow up - The analysis phase needs information in the form of reports and statistics to successfully follow up customers and agreements.