How To Start A Car Rental Business


Image of cars parked in a line

Car Rental Business Background Information

This venture is about renting vehicles to individuals who travel and anyone else who may need a vehicle for a short amount of time, such as vacationers, business people, and victims of auto accidents.

As a manager, you must complete the appropriate paperwork, verify each customer’s driver’s license, and collect the necessary deposits.

Once your vehicles are returned to you, you must complete the final invoices including all rental fees and any additional fuel or mileage charges as well as perform a damage check of the vehicle.

You must remember to be professional and maintain patience, as many people who walk through your doors will be stressed from traveling or dealing with their insurance company, or whatever other circumstances.

Skill Set:
Employee & Job Consideration During The Start-Up Phase Or In The Future:

Rental Agent – A person in this position provides customer service, offers sales incentives, maintains store appearance and inventory, answers phones, keeps the working area safe, and more.

Manager – This person oversees the daily operations, manages sales reports, and makes forecasts, sets revenue goals, and manages the plan for reaching such goals, ensures customer satisfaction, manages and trains team members, and ensures that all procedures and policies are being followed efficiently.

Airport Manager – This person oversees the daily operations of airport location, manages sales reports and makes forecasts, sets revenue goals and manages the plan for reaching such goals, ensures customer satisfaction, manages and trains team members of their location, and ensures that all procedures and policies specific to the airport location are being followed efficiently.

Security Guard – This position includes ensuring the safety of all buildings, rental vehicles, personnel and property. They will patrol the assigned area, routinely checking for intruders, unsecured locks or vehicles, or any other irregularities and other dangers such as fire.

Common Positions

Common Staff Positions Needed To Run Some Businesses

Equipment, Supplies, & Services During Start-up OR In The Future:
Monthly Expenses To Consider:

List of Common Monthly Expenses


Licenses generally depend on the rules and regulations of the area in which they are located. You will need to fill out an application to receive a certificate of authority in order to operate.

Once you have a license, you must then obtain the proper permits for your area. Most states require a record of insurance submitted to the insurance commissioner. If you operate in an airport, you will have to pay concession fees and are subject to random audits and inspections by the state.

See Our Page on Licenses and Permits

The Pros and Cons:


  • There will also always be a market for renting cars
  • It’s a relatively easy startup
  • Much needed and widely used service


  • You will be responsible for the maintenance of all of the cars, keeping them in perfect order
  • You will also be responsible for making sure that people take good care of the cars and pay their bills, which can end up being a hassle sometimes
  • There also may be certain times of the year which are slower than others
  • Highly competitive industry
  • High start-up costs for vehicles
  • High insurance rates
  • May have to stay open 24/7 if working out of an airport
Hours of Operation:

This can vary depending on your location. If you are near a busy airport, you may want to stay open 24/7. Other locations can work normal business hours from 8:00 a.m. to 7:00 p.m. or so. Either way, you will want to make sure that your customers are able to drop the car off safely at any hour of the night.

Business Considerations

What You Must Consider Before Starting Your Business ~ Your Success or Failure Depends On It
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