Rental management software
Encyclopedia
The rental industry
spans many different types of equipment from tools to heavy construction equipment, aerial to vehicles, party and event to computers and test and measurement equipment and highly specialized areas such as Crane and Temporary Accommodation rental. In the UK and some parts of Europe it is referred to as the Hire Industry.
, initial rental software systems were developed in the 1970’s and 80’s as custom or bespoke solutions provided for individual rental companies and occurred in parallel in locations across the globe. In the last 2 decades a number of leading players have emerged providing solutions for everything from 1 or 2 user systems in a single store to international, multi-company and multi-location organizations.
The rental industry itself continues[ to adapt and re-shape, as different players enter the market and national boundaries become less significant. The introduction and expansion of increasing numbers of manufacturers, such as Volvo Rents
and CAT
into the rental industry as direct providers of rental services is also re-shaping the way that individual rental software providers adapt their software.
, AR
and AP
), Equipment Servicing, CRM
and reporting functionality allowing rental businesses to achieve all their business analytics from within a single package. Rental management software that integrates with 'off-the-shelf' accounting software can provide a viable alternative to the 'all-in-one' solutions. There are distinct industry requirements which need to be managed within the software, with Utilization
one of the most important. These special features include:
For rental business’ working across country boundaries then additional special functionality may include multi-currency, multi-tax jurisdiction and multi-lingual needs.
There are also specialized forms of rental which are either a precursor to a sale of a large piece of equipment, or a special business model normally referred to as Rent-to-own. This specialized area has its own industry body and multiple rental companies across the world are represented.
The use of software in the property rental industry has become more frequent as large property management companies now account for one-third of the annual rentals in the United States.
In Australia, the body is Hire and Rental Industry Association . In New Zealand the association is Hire Industry Association NZ
Renting
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from landowners...
spans many different types of equipment from tools to heavy construction equipment, aerial to vehicles, party and event to computers and test and measurement equipment and highly specialized areas such as Crane and Temporary Accommodation rental. In the UK and some parts of Europe it is referred to as the Hire Industry.
History
Like most software developmentSoftware development
Software development is the development of a software product...
, initial rental software systems were developed in the 1970’s and 80’s as custom or bespoke solutions provided for individual rental companies and occurred in parallel in locations across the globe. In the last 2 decades a number of leading players have emerged providing solutions for everything from 1 or 2 user systems in a single store to international, multi-company and multi-location organizations.
The rental industry itself continues[ to adapt and re-shape, as different players enter the market and national boundaries become less significant. The introduction and expansion of increasing numbers of manufacturers, such as Volvo Rents
Volvo Rents
Volvo Rents , is a US company that rents construction equipment to contractors and retail consumers through a network of company owned stores and franchised locations ....
and CAT
Caterpillar Inc.
Caterpillar Inc. , also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas...
into the rental industry as direct providers of rental services is also re-shaping the way that individual rental software providers adapt their software.
Rental Management Software Functionality
Rental management software should cover all aspects of a rental business in a systematic way including Financials (GLGeneral ledger
The main accounting record of a business which uses double-entry bookkeeping. It will usually include accounts for such items as current assets, fixed assets, liabilities, revenue and expense items, gains and losses. Each General Ledger is divided into debits and credits sections. The left hand...
, AR
Accounts receivable
Accounts receivable also known as Debtors, is money owed to a business by its clients and shown on its Balance Sheet as an asset...
and AP
Accounts payable
Accounts payable is a file or account sub-ledger that records amounts that a person or company owes to suppliers, but has not paid yet , sometimes referred as trade payables. When an invoice is received, it is added to the file, and then removed when it is paid...
), Equipment Servicing, CRM
Customer relationship management
Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
and reporting functionality allowing rental businesses to achieve all their business analytics from within a single package. Rental management software that integrates with 'off-the-shelf' accounting software can provide a viable alternative to the 'all-in-one' solutions. There are distinct industry requirements which need to be managed within the software, with Utilization
Utilization
Utilization is a statistical concept as well as a primary business measure for the rental industry.-Queueing theory:In queueing theory, utilization is the proportion of the system's resources which is used by the traffic which arrives at it. It should be strictly less than one for the system to...
one of the most important. These special features include:
- Reservations and Allocations management based on differing contract durations and customer requests.
- Dispatch/Pick-Up/Returns Process Management with the ability to manage partial dispatches and returns including asset trackingMobile asset managementMobile asset management is managing availability and serviceability of assets used to move, store, secure, protect and control inventory within the enterprise and along the supply chain or in conjunction with service providing.Mobile assets are e.g...
and signature capture on delivery / pick up.. - Accessories, AttachmentsRental accessories and attachmentsMost equipment, vehicles, tools, portable accommodation and specialized equipment is rented with either attachments or accessories. When dealing with heavy and specialized equipment, these are normally referred to as attachments, other types of rental tend to refer to them as accessories, though...
& Kits including sale or return items such as fuel. - ‘In Lieu of’ or alternate items when equipment is not available as expected.
- Transport management including ordering in outside haulage and keeping track of revenue and cost against delivery vehicles.
- Product Exchanges and swap outs on live contracts
- Site Moves/Drop Ship & RelocationsRental relocationRental relocations are specific to certain types of rental equipment. Examples include: portable buildings, construction trailers, large generators and heavy equipment....
within live contracts - Contract Charging Profile determining when and how charging is generated including flexibility on excess hours charges, charging by hour / day / week / month etc.
- Product Service Units and clock hour recording and maintenance triggers
- Bill Processing for long term rental contracts on specific cycles (continuation or recurring invoicing), automated off-rent billing and additional charge management.
- Sale or Return consumables must be managed alongside rental products.
- Rent to Purchase or Rent to Own agreements with pre-determined contracts to take ownership of assets at a specific point in the contract.
- Product Revenue Accruals to provide revenue forecasts for rental contracts not billed at month end.
- Product UtilizationUtilizationUtilization is a statistical concept as well as a primary business measure for the rental industry.-Queueing theory:In queueing theory, utilization is the proportion of the system's resources which is used by the traffic which arrives at it. It should be strictly less than one for the system to...
including Physical and Financial (dollar utilization) must be recorded. - Stock Locations and tracking of equipment between locations including inter-branch or inter-store transfers, and for larger businesses inter-company transfers.
- Cash Customers/Contracts with cash drawer or till reconciliation and deposit management.
- Sub-Rent or Re-Rent management including the ability to initiate rentals from third parties to cover contract obligations.
- Product Service Inspection/Repair including the ability to trigger maintenance activity based on rental status, off-rent damage reports and clock hours or other service units.
- Operated Equipment or Wet RentalOperated equipment rentalOperated Equipment Rental is the term used for the rental of large or complex machinery where the rental company supplies an operator or driver to operate the machinery. This is also sometimes referred to as Wet Rental , and Operated Plant...
where operators are sent out with the machine or equipment, and the rental charges are based on a combination of timesheet and standard rental charges. This is generally referred to as Timesheet Billing. This is common practice in crane rental in Europe and in larger equipment rental in India and Asia. - The ability to manage Safety Critical Equipment or Safety Critical Plant including the recording of inspection and examination certificates.
- Rental Rate Optimization and Yield ManagementYield managementRevenue management is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed, perishable resource...
.
For rental business’ working across country boundaries then additional special functionality may include multi-currency, multi-tax jurisdiction and multi-lingual needs.
There are also specialized forms of rental which are either a precursor to a sale of a large piece of equipment, or a special business model normally referred to as Rent-to-own. This specialized area has its own industry body and multiple rental companies across the world are represented.
Implementing rental software
Implementing rental software requires the same basic principles as any other software implementation. The International Rental News and Rental Equipment Register Magazines both offer advice on software implementation.Real Estate Rental Management Software
Rental management software for real estate properties can include end-to-end functionality such as marketing, rental applications, tenant screening, property management, payment processing, and accounting. Many large apartment complexes will use some sort of rental management software such as Quicken Rentals , RedSandz, or Renter's Friend software.The use of software in the property rental industry has become more frequent as large property management companies now account for one-third of the annual rentals in the United States.
Industry bodies
There is no specific industry body for rental software companies, although most of the larger companies work with either the American Rental Association or the European Rental Association . Country specific software companies will work with their own local rental associations.In Australia, the body is Hire and Rental Industry Association . In New Zealand the association is Hire Industry Association NZ