Bike rental - Money maker? or Headache?

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Bike rental - Money maker? or Headache?

Joel Oh
Member since 2023 · 188 posts · 111 votes

Hey guys, I am closing a property near one of the best bike trails in the country and this property has a huge *** abandoned garage.

I see a serious potential for turning this garage into a bike shop and renting bicycles. 

I can totally imagine a family renting bikes for $200~300 for their trip.

My concern is how often people will break these bikes. I am pretty handy but I don't want to spend my life fixing bikes.

Have any of yall tried bicycle rent at your STRs? 

How did it go? Is it a gold mine waiting for me to dig? or Advil generator? XD

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Brooklyn McCarty
Investor · Member since 2022 · 1k+ posts · 754 votes
2y

Avery Carl recently said that she partners with a bike rental nearby at one of her properties. The rental company delivers the bikes and takes care of all the maintenance and liability. I would explore this option. 

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y

    Bikes break. Better have a fixer around.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Collin Hays:

    Bikes break. Better have a fixer around.


     I know! From my experience of owning fa fixie in college and how often I have to repair it, it wasn’t fun. 

    Maybe I will get a bunch of cheap bikes and just throw them away every time they break 😂 

    Pretty sure I can find ones under $60-80 from discounted stores. Cheaper than nowadays’ labor. 

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y
    Quote from @Joel Oh:
    Quote from @Collin Hays:

    Bikes break. Better have a fixer around.


     I know! From my experience of owning fa fixie in college and how often I have to repair it, it wasn’t fun. 

    Maybe I will get a bunch of cheap bikes and just throw them away every time they break 😂 

    Pretty sure I can find ones under $60-80 from discounted stores. Cheaper than nowadays’ labor. 


     not a bad strategy!

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    0Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Check with your insurance company about supplying bikes. 

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    Just include them with the rental.

    I don't charge extra to use my Kayaks.

    3Reply
  • Tim J.
    Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    2y

    I'd stay away from a bike rental business.   Is the property zoned to allow business?  Have you looked at what your liabilities and the insurance costs for renting bikes? Do you know bike mechanics?

    If you want to provide a pair of bikes for your guests that's one thing - but I would stay away from getting into a bike rental side business.  

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    All depends on what you feel like messing with, but definitely check into liability insurance!

    [email protected]330-557-3021
    0Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    2y

    Avery Carl recently said that she partners with a bike rental nearby at one of her properties. The rental company delivers the bikes and takes care of all the maintenance and liability. I would explore this option. 

    4Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    We do not provide bikes, boats, anything.  Find local vendors in the neighborhood and try to partner with them for either a commission or a discount to garner good reviews which will pay dividends.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    2Reply
  • Bradley Glover
    Investor · Signal Mountain, TN · Member since 2015 · 7 posts · 5 votes
    2y

    We provide bikes, at no extra charge, for our local property. I picked the simplest bikes I could find with single speeds and coaster brakes to keep maintenance to a minimum. Amazingly, they are still going strong after two years with just some minor maintenance. However, if you are offering a bike-rental business, expect to be changing flat tires and adjusting brakes on a daily basis.

    I also like the idea of using a local vendor. We partnered with a local kayak and SUP rental company in the same market and paid an annual fee that allows our guests to rent kayaks or SUPs from that company at no charge. The kayak company takes care of the waivers, etc. directly with the guest.

    We've had multiple guests tell us that one of those two amenities was the reason they chose our property.

    1Reply
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 712 votes
    2y

    @Joel Oh

    Provide the bikes for free.  Get coaster brake one speed beach cruisers if your bike trail is flat if not get a 3-speed internal hub. Buy from a local bike shop that can service them for you. Most shops offer a free service for a year. Bikes from a bike shop will be more expensive but they will be assembled correctly and will have fewer issues.  Also have them put in the thick tubes to prevent flats. 

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    Whatever you decide to do, IMO the focus should not be on the bikes but on the liability. You will be sued regardless of where the bikes come from if you are involved at all....

    1Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Bruce Woodruff:

    Whatever you decide to do, IMO the focus should not be on the bikes but on the liability. You will be sued regardless of where the bikes come from if you are involved at all....

    That is what the voucher is for! I deal with legal issues all the time haha so I know what you are talking about 😂
    0Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Bradley Buxton:

    @Joel Oh

    Provide the bikes for free.  Get coaster brake one speed beach cruisers if your bike trail is flat if not get a 3-speed internal hub. Buy from a local bike shop that can service them for you. Most shops offer a free service for a year. Bikes from a bike shop will be more expensive but they will be assembled correctly and will have fewer issues.  Also have them put in the thick tubes to prevent flats. 


     Why would you provide bikes for free? I am not running a charity haha. Also people generally complain more when things are free. Human nature

    1Reply
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 712 votes
    2y

    @Joel Oh

    If you're in a competitive market a small value add to your rental can tip the scales in your favor to booking. Having a few bikes for free lowers the expectation of exchange. If the renters had to pay for them they will expect more in return, fully functional, perfect condition, higher quality. As a former bike mechanic I know renting bikes for a profit is a full time job because of the repairs. Also electric bikes would rent better but are also more expensive and require more maintenance. I would think you'd make more off your rental at full capacity than renting bikes. I've not done the math so I could be wrong.   

    1Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Bradley Buxton:

    @Joel Oh

    If you're in a competitive market a small value add to your rental can tip the scales in your favor to booking. Having a few bikes for free lowers the expectation of exchange. If the renters had to pay for them they will expect more in return, fully functional, perfect condition, higher quality. As a former bike mechanic I know renting bikes for a profit is a full time job because of the repairs. Also electric bikes would rent better but are also more expensive and require more maintenance. I would think you'd make more off your rental at full capacity than renting bikes. I've not done the math so I could be wrong.   


    Yes, I hope it doesn’t become a full-time job! Surprisingly, people expect more from the free amenities than paid items because these items are not really “free”. If I don’t charge them, people’s brain will automatically connect the price of the trip to the amenities I provide and expect the matching value from them which is significantly higher than renting bikes for a few hundred dollars. Funny but that is how the human mind works. 

    I love the idea of the local bike shop. This is gold. I will go with that path. 

    1Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Brooklyn McCarty:

    Avery Carl recently said that she partners with a bike rental nearby at one of her properties. The rental company delivers the bikes and takes care of all the maintenance and liability. I would explore this option. 

    Avery the god 😂 This is great. I'm pretty sure I can get some shared profits as well. She really experienced all. Thanks for this!! 

    0Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Bradley Glover:

    We provide bikes, at no extra charge, for our local property. I picked the simplest bikes I could find with single speeds and coaster brakes to keep maintenance to a minimum. Amazingly, they are still going strong after two years with just some minor maintenance. However, if you are offering a bike-rental business, expect to be changing flat tires and adjusting brakes on a daily basis.

    I also like the idea of using a local vendor. We partnered with a local kayak and SUP rental company in the same market and paid an annual fee that allows our guests to rent kayaks or SUPs from that company at no charge. The kayak company takes care of the waivers, etc. directly with the guest.

    We've had multiple guests tell us that one of those two amenities was the reason they chose our property.


     Yes, love this. Not a fan of paying for their service when I give them guests but I can see how guests will love this feature.

    0Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @John Underwood:

    Just include them with the rental.

    I don't charge extra to use my Kayaks.

    I am pretty sure your price includes those “free” items!! 
    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    We don't provide anything like bikes. Too much risk for us. I am not interested in the liability.

    Our lake house sits on a 72 mile long bike trail. Very popular and we get quite a few groups who come just to ride the trail.

    They all bring their quality bikes. Our trail is pretty rural and if a cheap bike breaks down, you could be walking for 15 miles before you find any help.

    There is a cycle rental shop right in our little town and I send everyone there if they want a bike for a day. I do the same for watercraft, pontoon and ski boats as well.

    I am thinking of doing what @John Underwood does with kayaks. I have one in the garage that floated in and landed on our beach. Maybe I will get a couple more after speaking with my insurance company.

    0Reply
  • Marcus R.
    Real Estate Agent · Denver CO · Member since 2019 · 209 posts · 332 votes
    2y

    I haven't done this but would do it.  Explored doing something similar with car rentals at one of our STRs and others in the area but didn't quite pencil out because of the depreciation on the cars we were considering.  

    Sounds like a business problem in the area that needs to be solved and could be worthwhile.  You don't know what you don't know and there is risk involve but I wouldn't let that stop you.

    Who knows, you may uncover this local bike rental business is more profitable than your local STR and deserves more of your time. What if you become the local bike rental business that all these other STRs rent from...

    0Reply
  • Joel Oh
    OP
    Member since 2023 · 188 posts · 111 votes
    2y
    Quote from @Marcus R.:

    I haven't done this but would do it.  Explored doing something similar with car rentals at one of our STRs and others in the area but didn't quite pencil out because of the depreciation on the cars we were considering.  

    Sounds like a business problem in the area that needs to be solved and could be worthwhile.  You don't know what you don't know and there is risk involve but I wouldn't let that stop you.

    Who knows, you may uncover this local bike rental business is more profitable than your local STR and deserves more of your time. What if you become the local bike rental business that all these other STRs rent from...


     Possibilities! Love that word 🥰

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Joel Oh Serious bikers have serious bikes. Use the garage for something else.

    1Reply
  • Gregg Francis
    Wilmington, DE · Member since 2017 · 2 posts · 0 votes
    2y

    I owned a bike rental in Hilton Head. Huge headache if you deliver. Maybe ok if they are picking up. You have to buy top quality bikes to withstand the abuse which is expensive. Bikes will last a few years at most, less if you are renting bikes with gears. Check insurance rates too. 

    0Reply
  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    2y

    Joel,

    My advise is to have a long discussion with your Insurance agent and then with your Attorney.  Whether or not your existing policy would provide coverage may depend on:

    1. type of policy

    2. are you charging for the rental

    3. are you renting to a non-tenant

    If it is covered, you need to work out waivers and contract language with your attorney.  You can't avoid the suit but you may be able to limit the damage by how the documents are worded

    0Reply
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