(Topic ID: 183442)

Renting Out Machines For Home Use

By Linkage

7 years ago


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    #1 7 years ago

    So - my location sucks for Pinball. Both buying machines and location play. There's nothing out there.

    The Movie Theatre five hours away just actually just put in a Ghostbusters and a Fish Tales which has me ecstatic. I'm curious how long they will last though if they don't pull enough coin. This got me thinking.

    I would rent a machine for $200-$300 per month no questions asked if it came with the ability to occasionally switch machines. If I would do it, I bet those people who want one or two machines for their shed / basement / mancave would too.

    A $4000 machine rented out at $200 per month is a 5% ROI - per month. That's not a horrible return, in fact that's a 60% ROI per year. That's stellar from an investment standpoint. 20 months to pay for itself, which is not great from that perspective, but seems like a better deal then routing a machine. And yes I know, that does not account for, wear and tear and time, but bear with me as this is rough napkin math. Plus the assumption is that home based use will be a lot less damaging then routing.

    I obviously need to flesh the idea out more, but I'm wondering what everyone thinks about the concept? I've look for threads on the idea, but can find minimum. I do know one guy renting out new machines to office locations who does fairly well - different province.

    - Rent out pinball month by month. Probably a minimum 2/3 month commitment, repairs covered by me. After the 2/3 months they have the option to switch to another machine.
    - Pinball will have more interest than arcade machines, but maybe bundle a nice 60 in 1 with a machine as well, increase the perceived value. Minimal extra cost to me, I've got like 40-50 cabs in storage.
    - Price probably 200-300 per month.
    - I live in a somewhat smaller area. Everyone knows everyone. This greatly decreases the chance of someone stealing a machine. If you've lived here for 30+ years and own a thriving business, you're probably not bugging out and stealing a machine from me. I wouldn't take just anyone.
    - I've sold machines to a lot of people that would be the target demo. I can see them and their friends being interested.
    - Someone is going to bring liability up, I might look into it, but unless this scaled and I had like 10 machines out at a time, I wouldn't bother with it.

    Anyways, thoughts?

    #2 7 years ago

    You would need a huge deposit. Hope your game (and the people you rented it to) are still there after the rental time is up.

    -1
    #3 7 years ago

    An operator here in Austin rents for home use. One of our league players got great at TWD by renting one for a few months.

    #4 7 years ago

    I would never pay $200-300 to rent a pinball. That is literally throwing money out of the window. Owning pinball for me is playing whenever I have time which is not that often. For me it does not make sense but that's only me.

    Plus, pinball are a pain to move god knows.

    #5 7 years ago

    I would call this a lease, rather than a rental.
    2-300 isn't too bad for a month, but moving machines in and out, up and down stairs, heading over for repairs, and then of course they are going to have their friends over, hammering on that game all through the night. It starts to be a case of earning your money, and taking some wear on the game.
    If someone wants to truly "rent" a game from me, Its $100 delivery, $100 pick-up, and $100/day, or $500/week.
    And make up a contract, get it signed.

    #6 7 years ago

    Ive considered this but too much risk. If people disappear or don't pay you now have to be a bill collector. Some of these games are 5K plus and the loss of one game would vanish any profits on this venture.

    #7 7 years ago

    I know you said you wouldn't bother with liability insurance but one bad accident and this little profit adventure takes your house away.

    #8 7 years ago

    ive rented games from a really close friend of mine with a 25+ collection. He charges $100 for 3 months if i pick it up/deliver and $150 if he delivers/picks up for 3 months. I fix any issues myself and LED(he pays for any mods) them if they need it so he always gets games back in better condition then when i recieve them. He has trouble keeping up with all his games so its a win win for him and i got to play alot of titles till i got bored of them instead of having to spend $5-8K on them to play then sell.

    He wouldnt rent games out to just anybody! He only rents games out to 1 other close friend of ours and we've all been friends for 20 years. I would advise against renting to just anybody.

    -1
    #9 7 years ago

    Person rents pin to another person ....said person has machine in basement mancave ... all is well until that system 11 that never had the bridge rectifier fused goes up in flames....house burns down... said person sues your ass off. Just a scenario...just sayin.

    #10 7 years ago

    I think it's an idea worth exploring further maybe trying a few locations. As others have said the mob and demob could get costly, I would want to recoup that somehow. I like the idea on the arcade machine as a "bonus" to renters. Appropriate house insurance to cover all involved is a must. Commercial liability to cover you and your machines? I wonder how much that premium would be per month for you? Wouldn't be worried about theft so much but as mentioned w the bridge rectifier scenario..... I think you should try a few known great (people) locations. Report back with all the secrets in how we can make $ with pinball machines! J/k

    #11 7 years ago

    I've often wondered how to make a mobile arcade using an enclosed trailer. Obviously this would need some serious design/engineering consideration, but it seems kinda cool to me at least to imagine rolling up to a wedding reception with an instant arcade. Might be a dumb idea..?!

    #12 7 years ago
    Quoted from BCpinhead:

    I've often wondered how to make a mobile arcade using an enclosed trailer. Obviously this would need some serious design/engineering consideration, but it seems kinda cool to me at least to imagine rolling up to a wedding reception with an instant arcade.

    I've seen these years ago at county fairs and festivals. Able to be done. Not sure if it's worth it when you figure cost of games, maintenance, travel, food, hotel/motel, insurance, local regulations, etc. etc.

    LTG : )
    Disclaimer : My Dad got a trailer and was going to do this in the 1950's. His partner backed out, so the idea never hit the road.

    #13 7 years ago

    I think it's viable. My co-worker wanted to do the same with my pin. I think a deposit makes sense. You need to do a lease contract. You also need to document a maintenance contract as well.(who pays for parts, labour).

    #14 7 years ago
    Quoted from Linkage:

    - I live in a somewhat smaller area. Everyone knows everyone. This greatly decreases the chance of someone stealing a machine. If you've lived here for 30+ years and own a thriving business, you're probably not bugging out and stealing a machine from me. I wouldn't take just anyone.
    - I've sold machines to a lot of people that would be the target demo. I can see them and their friends being interested.

    Stealing may not be a concern for you in you community. But, renting/leasing to friends or friends of friends is likely to cause you to lose said friends. It wouldn't be long before an issue arose (machine not working, cabinet scratch, fuse blown, glass broken, spill, board, could be anything.) Then you are in the position of either having to ask this person to pay for repair or eating that yourself. Now you face potential disputes about whether the issue/damage happened on your watch or theirs, and it just sounds like a recipe for disaster. I think you will lose friends and money. Sorry to be negative on your idea, but I think there is a reason this type of arrangement is uncommon. Nothing like money, even a few hundred, to come between friends.

    #15 7 years ago

    I like the idea but $200+ is expensive. I think the price should be relative to game's value. It would be fun to do once in a while. Get something new and play it a bunch without spending too much. That would be great for new Stern pins. I don't mind paying a little if I don't have to move the pin or fix any big issues. That said, there is a lot of risk and liability on your end dealing with strangers.

    #16 7 years ago

    I own a rental company, different industry, but the fear of theft is more overblown than reality. Liability coverage is obviously a must, and I know I would be interested if their was a professional company that rented pins. Price wise we use A percentage of MSRP to set rental rates, and I think something like 10% of MSRP for 90 days seems fair, at least that's what I would pay. Since moving pins is an issue, I would also make it a minimum of 90 days, so travel doesn't tear your machines up. The people saying that others might bash on them could be correct, but i feel like pins in the wild would receive if not the same or way more abuse. We also service our equipment between each rental, so the chances of someone having an issue are slim.

    #17 7 years ago

    Look, find a couple of good trustworthy friends. Swap games, lend games, have fun.

    I've had games at friends houses. Right now my Getaway is at a friends. I trust him, and he is a completely reasonable guy. If anything goes wrong from playing, he would fix it. If something electronic goes, I'll fix it. Everybody knows the deal with games, they break. And reasonable people can figure out where it should be fixed. That's why you only do it with friends you trust. Skip all the bull crap.

    #18 7 years ago

    Make more friends that own pinball machines, and you never need to rent anything.
    Eventually collectors will give you machines to borrow.

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