“A $40,000 investment in a high-end restroom trailer can yield a monthly income of around $6,000.”
“Wait, you’re telling me people actually make money off… bathrooms?”
One of our team members was dumbfounded by this possibility at our latest social. Practically everybody has used a portapotty, or a restroom trailer, at a large event. Of course, people don’t assume these things just pop up out of thin air, but many are unaware that event planners are actually paying a pretty penny to restroom trailer businesses to have all those bathrooms available for their guests.
But how do you get started in the restroom trailer rental business, and is there actually a large enough profit potential to justify the labor and equipment costs associated? In this blog, we’ll go over everything you need to know about profitability, how to get started, where to get your first restroom trailer, and common mistakes to consider before you decide if this is a good option for your business venture.
- What is the difference between a restroom trailer and porta potty?
- Is there a demand for restroom trailer rental businesses?
- How much does it cost to start a restroom trailer rental business?
- Are restroom trailer rental businesses profitable?
- How to start a restroom trailer business
- Best restroom trailers for small startups
- Need help getting started?
What is the Difference Between a Restroom Trailer and a Porta Potty?
The main difference between a restroom trailer and a porta potty is the design and amenities.
A restroom trailer is more elaborate and is generally considered a luxury rental. Restroom trailers usually offer multiple stalls, flushing toilets and running water. Some even have additional features like sinks with mirrors, interior lighting, and air conditioning/heat.
On the other hand, a porta potty is a single, standalone unit that is much simpler. Porta potties usually do not have flushing toilets or running water. They are a more basic, cost-effective option for outdoor events. Many restroom trailer businesses also offer porta potties so that they can target more types of events.
Is There a Demand for Restroom Trailer Businesses?
The short and simple answer is yes — there is, and always will be, a large demand for restroom trailer businesses. But there’s more to the story than general demand; it’s more about whether there is a demand in your area and how much competition already exists.
Here are a few things to consider:
- What kinds of events happen in your area? Larger, more upscale events such as weddings, corporate gatherings, and festivals are more likely to require restroom trailers for their guests due to their enhanced comfort and aesthetics.
- How much competition already exists? The presence of other rental businesses offering similar services can impact demand. A market with fewer competitors may present more opportunities.
- What kind of marketing will get your business noticed? Effective marketing strategies and strong online visibility can significantly influence demand, as potential customers need to be aware of the availability and benefits of restroom trailers,, and you must rank above competitors on Google.
How Much Does It Cost to Start a Restroom Trailer Business?
A single high-quality restroom trailer typically costs between $30,000 and $40,000. Additional startup expenses include:
- Business Formation: Registering as an LLC or another business entity to ensure legal protection and compliance.
- Waste Disposal: Fees for legally and safely disposing of waste collected from the trailers.
- Insurance: Necessary to protect your assets and cover potential liabilities.
- Storage and Maintenance: Costs for storing and maintaining trailers when not in use.
- Marketing: Budget for promoting your business to attract clients.
These costs can add up quickly, so preparing a detailed business plan is crucial to cover all potential expenses and ensure profitability. Given these factors, you can expect to invest around $50,000 to get started with a single restroom trailer
Are Restroom Trailer Rental Businesses Profitable?
With those kinds of numbers, you’re probably wondering about the return on investment (ROI) of a portable restroom trailer. Luckily, there’s some research on that!
According to Lang Specialty Trailers, a $40,000 investment in a high-end restroom trailer can yield a monthly income of around $6,000. Assuming monthly operational costs are well managed, recouping your initial investment could take approximately 8 to 9 months of consistent rentals.
How to Start a Restroom Trailer Rental Business
If there is a demand in your area, a restroom trailer business is a fantastic option for small start-ups with a limited budget. While $50,000 is nothing to sneeze at, it’s a pretty reasonable and relatively low start-up cost compared to other luxury rental business start-up costs, especially considering the ROI potential on restroom trailers.
In this section, we’ll give you a step-by-step guide on how to start a small restroom trailer rental business.
Step 1: Create a Business Plan
Start by assessing the demand in your target area. Who are your potential customers? What businesses already exist that will compete with yours? What is the average cost to rent a restroom trailer? This may require some digging. Since many rental businesses choose not to list the price of large inventory online, you may need to call them up and ask how much a daily, weekly, and monthly rental costs.
Then, you should document the following:
- Define clear, achievable goals for your business. Decide whether you are targeting small local events or larger corporate functions.
- Outline all expected startup costs, including purchasing restroom trailers, legal fees for business registration, insurance, and initial marketing. Also, forecast ongoing operational costs and potential revenue.
- Determine how you will finance the startup costs. Options include personal savings, loans, or investments from partners.
- Develop a plan for your business’s daily operations. This should include logistics for delivery, setup, maintenance, and waste management of the trailers.
- Create a marketing plan to attract clients. Consider digital marketing, partnerships with event planners, and attendance at local trade shows.
Your business plan is your business sales pitch. It serves as a guide for you and your future team and can also double as a pitch for investors or financing options.
Step 2: Purchase Your First Trailer(s)
Starting with a single restroom trailer is a common approach for many startups in this industry. This strategy allows you to manage initial costs while testing the market. You can consider expanding your inventory as your business gains clients and becomes profitable.
While using personal savings to purchase your first trailer is an option, financing is also available, which can ease the burden of upfront costs. Companies like Sage Creek Capital, LLC offer financing options tailored for those looking to start or expand their restroom trailer business. Financing can provide the flexibility to acquire higher-quality trailers from the outset, potentially enhancing your business’s appeal and profitability.
You can visit Sage Creek Capital, LLC for more information on financing options.
Step 3: Secure Storage & Staffing
Securing a reliable storage location for your restroom trailer is essential. Options range from storing it at your own home to renting space at a commercial storage facility. If you do store it at home, consider placing it under a heavy-duty carport to protect it from the elements.
Regarding staffing, you have flexibility depending on how hands-on you wish to be. If you’re aiming for a more passive approach, hiring an employee might be suitable, though this will initially increase your operational costs. Alternatively, you can manage the operations yourself to keep costs lower and have direct control over your business.
Step 4: Obtain Necessary Licenses in Your Region
To operate a restroom trailer rental business, you need several types of permits and licenses:
- Business License: Required to operate a business legally in your locality. Check with your city or county government office to apply.
- Waste Disposal Permits: Necessary for legally disposing of waste from your trailers. This involves understanding state and local regulations about waste management.
- Transportation Permits: Required for moving large trailers, especially if they exceed certain size or weight limits. These permits ensure that your transport methods comply with road safety regulations.
- Local or State Permits: Depending on where your business operates, you might need additional permits specific to your state or locality.
To find out exactly what you need, visit your local city hall or check the official government website for your area. They provide detailed information on the required permits and licenses for your specific business and location.
Additionally, consult with a local business attorney, who will help ensure you meet all legal requirements.
Common Challenges for Restroom Trailer Rental Businesses
Seasonality
The challenge of seasonality is particularly relevant in the restroom trailer rental business, as demand can fluctuate significantly throughout the year. During warmer months, the frequency of outdoor events such as weddings, festivals, and corporate retreats typically increases, leading to higher demand for restroom trailers. In colder months, these events decrease, and so does the need for such facilities. This can lead to periods of high revenue followed by slowdowns, affecting cash flow and business planning.
To manage this, businesses can explore opportunities in markets that require year-round services, such as disaster relief operations or construction sites, which may need temporary restroom facilities regardless of the season. Additionally, promoting offseason events or offering discounted rates during slower months might help balance the demand curve and ensure consistent revenue throughout the year.
Maintenance
For new owners, maintaining their restroom trailer business effectively is a critical challenge. It’s essential to thoroughly understand the systems within your restroom trailer, such as plumbing and electrical, and the regular upkeep they require.
Here’s what you need to keep an eye on:
- Implement a strict cleaning regimen to ensure trailers are hygienic and presentable for each rental.
- Regularly inspect plumbing and electrical systems to prevent malfunctions during events.
- Proactively address wear and tear to avoid larger, more expensive repairs later.
- Establish connections with service providers who can offer timely repairs and maintenance advice.
- Invest in training for yourself and any staff on the specifics of restroom trailer trailer maintenance.
Quality Matters – Best Restroom Trailer to Purchase for Startups
Selecting the right trailer for startups venturing into the restroom trailer rental business is crucial. We recommend the ECO Series from Lang Specialty Trailers for small startups.
These trailers are designed to offer affordability without compromising quality. Some of our favorite features of this restroom trailer are:
- Durable gel-coated fiberglass interiors and exteriors
- Easy-to-clean surfaces
- Easy setup
- Built with energy-saving components
The ECO Series also provides options like air conditioning, heating, and metered faucets, making them very comfortable and functional for users.
Ready to Start a Restroom Trailer Rental Business? Let Us Help!
Ready to start a restroom trailer rental business? We’ve outlined key considerations like profitability, buying the right trailers, and common challenges. In addition to these important pieces of the puzzle, keeping track of your inventory and business operations is also crucial. TapGoods can help with that!
Starting at just $19 per month, our software is designed to support growing businesses like yours. If you have more questions or want to discuss your business goals, we’re here to help.
Fill out our form, and let’s chat about turning your business idea into a success.
Other blogs you may find helpful:
Best Practices for Pricing Rental Inventory with a Calculator
Best Practices for Rental Inventory Management and Tracking
How to Automate Parts of your Rental Business and Maximize Efficiency and Profits
Starting a Rental Business? We Can Help!
Frequently Asked Questions
Restroom trailers provide a cleaner, more comfortable experience with running water, sinks, and even climate control. Porta potties are single-unit, no-flush restrooms that are more basic and often used for large public events or construction sites.
Restroom trailers are commonly rented for weddings, corporate events, festivals, private parties, construction sites, and emergency response situations.
The cost varies based on size, features, and rental duration. On average, prices range from $750 to $3,000 per event.
The startup cost can range from $50,000 to $70,000 including the purchase of a restroom trailer, business licensing, waste disposal fees, insurance, and marketing.
Regular cleaning, plumbing and electrical inspections, and waste disposal are necessary to keep the trailers in top condition.