Should I Rent out my Posch split master firewood processing equipment?

[Daniël Bos]

Whenever I've considered any equipment for hiring out I calculate it thus:

 

Machine value (say £25k)

Normal time this machine would last reliably (5 years)

Maintenance and insurance cost/year (2k)

 

When renting things out they break much faster so I'd be looking to replace the machine in 2.5 years so I'd need to earn £30k/2.5 = 12k/year (£25k + 2.5yx2k )

£12k/ 25 (weeks of use) = £480/week.

 

Ant residual value of the machine is nice, but for my calcs I assume it's totally shagged after the 2.5 years.

Renting a machine out full time is in reality quite hard to achieve...

 

So, if the machine can be hired out and earn £480+consumables, operator, transport etc per week I'd consider it. If not it stays at home.

 

 

Whereabouts in Norfolk are you?