Starting a golf cart rental business can be an exciting venture, blending a knack for customer service and logistics with sharp business acumen. The industry is valued in the billions, fueled by consistent demand from resorts, large event venues, and residential communities.
This guide will take you through the practical steps of securing funding, obtaining the right permits, selecting a location, and acquiring your fleet to help you launch a successful golf cart rental business in the U.S.
Step 1: Create your business plan and validate the market
Market and competitor research
Start by analyzing your local area. Contact event planners, wedding venues, and managers of large residential communities. Ask about their current needs and if they have existing rental contracts. This gives you direct insight into potential demand before you spend a dime.
Next, identify your competition. A simple search on Google Maps for "golf cart rentals near me" is a great starting point. Look at their websites, fleet sizes, and pricing structures. A mistake some new owners make is to only look at direct competitors; also consider companies that rent other small vehicles.
Estimate your startup costs
Your initial investment requires a detailed budget. A reliable used golf cart can cost between $4,000 and $7,000. For a small fleet of five carts, you might plan for an initial outlay of $20,000 to $35,000 just for the vehicles themselves.
In addition, you will need to budget for other expenses. Set aside around $2,000 to $5,000 for general liability insurance, $300 to $500 for business registration, and another $2,000 to $5,000 for a transport trailer. Also include a buffer for initial maintenance.
Here are 3 immediate steps to take:
- Contact two local event venues to ask about their golf cart needs.
- Analyze the pricing and services of at least three local competitors.
- Draft a startup budget that includes costs for a five-cart fleet, insurance, and a trailer.
Step 2: Establish your legal structure and get licensed
Choose your business structure
You might want to consider forming a Limited Liability Company (LLC). This structure separates your personal assets from business debts. It also offers pass-through taxation, meaning profits are taxed on your personal return, which simplifies filings compared to a corporation.
A sole proprietorship is simpler but leaves your personal assets exposed. An S-Corp or C-Corp involves more complex regulations and tax rules, so an LLC often provides a good balance for new rental businesses.
Secure federal, state, and local permits
First, get an Employer Identification Number (EIN) from the IRS website. It is free and you will need it for taxes and banking. Next, register your business name with your state’s Secretary of State, which typically costs between $50 and $200.
Many new owners overlook local rules. Contact your city or county clerk to ask about a general business license and specific Low-Speed Vehicle (LSV) permits. These can cost $50 to $300 and take several weeks to process, so it is wise to start early.
Here are 3 immediate steps to take:
- File for an LLC with your state's Secretary of State office.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Check your city's website for ordinances related to Low-Speed Vehicle (LSV) rentals.
Step 3: Secure your insurance and manage risk
Understand your insurance needs
You will need several policies. General liability insurance is the foundation, and a $1 million policy is a good starting point. This protects you if a renter causes injury or property damage to a third party. Annual premiums often range from $2,500 to $6,000.
Also, get commercial auto insurance if your carts are street-legal. Your fleet itself needs commercial property insurance to cover theft or damage. Some new owners think their personal policies offer protection, but they do not cover business activities.
Look for providers that understand recreational rentals. You might want to get quotes from companies like XINSURANCE or The Hartford. Working with an independent agent who can compare policies from multiple carriers is also a smart move.
Minimize your operational risks
Beyond insurance, you need solid operational procedures. Have every renter sign a detailed rental agreement and liability waiver. This document should clearly outline rules, restrictions, and the renter's responsibilities for any damages.
Consider setting a minimum rental age of 21 or even 25 to reduce risk. To protect your assets, you can install GPS trackers on each cart. This helps prevent theft and allows you to monitor if carts are taken into prohibited areas.
Here are 3 immediate steps to take:
- Request quotes for a $1 million general liability policy from two specialized insurers.
- Draft a rental agreement and liability waiver with clear rules for renters.
- Research GPS tracking devices suitable for golf carts to protect your fleet.
Step 4: Set up your location and buy equipment
Find a suitable location
Start by checking your city’s zoning map for commercial or light industrial areas. A mistake some new owners make is to rent a space without confirming its approved use, which can lead to fines. A simple storage unit is often not compliant.
For a small fleet of five carts, a 500-square-foot space is a good start. If you plan to do maintenance on-site, aim for closer to 1,000 square feet. This gives you room to work and store parts without feeling cramped.
When you find a spot, you might want to negotiate a one or two-year lease instead of a longer term. This provides flexibility. You can also ask the landlord for a "break clause" in case the business needs to relocate or close.
Purchase your fleet and gear
Once you have a location in mind, focus on your transport trailer. A 16-foot flatbed trailer can hold two to three carts and costs between $3,000 and $7,000. Make sure it meets Department of Transportation (DOT) standards for commercial use.
You will also need maintenance supplies. Budget around $500 for a commercial-grade battery charger, a toolkit, a tire pressure gauge, and cleaning products. These items help keep your fleet in top shape for every rental.
Here are 3 immediate steps to take:
- Review your city’s zoning ordinance for commercial vehicle storage.
- Get price quotes for a 16-foot DOT-compliant flatbed trailer.
- Draft a lease proposal with a one-year term for a potential location.
Step 5: Set up your payment system
Handle payments and deposits
Most rentals require full payment upfront. You should also collect a security deposit, typically $250 to $500, held on a credit card. This covers potential damages and is refunded after the cart is returned safely. Make these terms clear in your rental agreement.
When you look at payment solutions, you will find that many providers charge 2.5% to 3.5% per transaction, plus monthly fees. For a business that needs to accept payments on-site or on-the-go, JIM offers a streamlined solution.
With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and done. At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for taking payments upon delivery at a resort.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done. No waiting for bank transfers.
Here are 3 immediate steps to take:
- Decide on a security deposit amount, like $250 or $500, for your rental agreements.
- Compare JIM's 1.99% transaction fee with two other payment processors.
- Download the JIM app to explore its interface before your first rental.
Step 6: Secure funding and manage your finances
Explore your funding options
You might want to look into an SBA Microloan, which offers up to $50,000. These are great for startups and often have interest rates between 8% and 13%. You will generally need a credit score above 650 and a detailed business plan to qualify.
Another path is equipment financing. Lenders finance the carts themselves, using the vehicles as collateral. This can be easier to secure than a traditional loan. Rates typically range from 6% to 20% depending on your credit and the age of the carts.
Plan your working capital
Before you make a single dollar, you need cash on hand. For a five-cart fleet, plan for at least $10,000 in working capital. This covers your first six months of insurance premiums, fuel, marketing costs, and unexpected repairs while you build a customer base.
A mistake some new owners make is underestimating these day-to-day costs. They focus only on the price of the carts. This can leave you without cash for marketing or maintenance, which stalls growth right from the start.
Here are 3 immediate steps to take:
- Check your credit score to see if you meet the typical 650+ requirement for an SBA Microloan.
- Contact two lenders that offer equipment financing to compare their interest rates and terms.
- Calculate your six-month working capital needs, including insurance, marketing, and maintenance.
Step 7: Hire your team and set up operations
Build your operational team
Your first hire will likely be a part-time Delivery Driver/Technician. This person handles deliveries, walks customers through cart operation, and performs basic maintenance. You can expect to pay an hourly rate between $18 and $25, depending on your location and their experience.
A mistake some new owners make is hiring someone without proven experience towing a trailer. This is a non-negotiable skill. During the interview, ask for specific examples of their towing experience to avoid costly accidents with your fleet and trailer.
Streamline your daily workflow
To keep things running smoothly, create a daily pre-rental inspection checklist. This document should cover battery charge levels, tire pressure, brake function, and cleanliness. It ensures every cart goes out in top condition, which reduces liability and improves customer satisfaction.
As you grow, you might want to use rental management software. Platforms like Booqable or EZRentOut can help you track inventory, manage online bookings, and process payments. This automates administrative work, freeing you up to focus on finding new customers.
Here are 3 immediate steps to take:
- Draft a job description for a Delivery Driver/Technician that requires trailer towing experience.
- Create a pre-rental inspection checklist covering safety and maintenance points.
- Review the features of Booqable and EZRentOut to see how they fit your business.
Step 8: Market your business and get customers
Establish your digital footprint
First, create a Google Business Profile. It is free and puts you on Google Maps. Upload high-quality photos of your carts. A simple one-page website showing your fleet, pricing, and contact information is also a great asset.
A mistake some new owners make is using stock photos. Use professional pictures of your actual fleet to build trust. This shows customers exactly what they will get.
Forge local partnerships
With your online details ready, reach out to wedding planners, hotels, and event venues. Offer them a 10% commission for each referral that books with you. This gives them an incentive to send business your way.
You can also run targeted local ads. On platforms like Facebook, you can target users interested in local events or who live in large communities. Start with a small budget, perhaps $15 per day, to test what works.
Here are 3 immediate steps to take:
- Set up a Google Business Profile with at least ten high-quality photos of your fleet.
- Draft an email template offering a 10% referral commission to three local event planners.
- Create a draft for a Facebook ad campaign targeting users within a 20-mile radius.
Step 9: Set your pricing and profit margins
Establish your rate structure
Most rental businesses use a tiered model. A standard four-seater cart might rent for $125 per day, while a six-seater could be $175. For weekly rentals, you can offer a discount, perhaps charging $550 for a week instead of the daily rate of $875.
Consider seasonal or holiday pricing. You could add a 20% surcharge for peak weekends like the Fourth of July. Also, create custom packages for events like weddings, which might include multiple carts and on-site support for a flat fee like $900.
Analyze competitors and protect your margin
Before you finalize prices, look at what direct competitors charge. Some new owners just copy prices without a look at their own costs. Your goal should be a gross profit margin of 50% to 60% after you account for insurance, fuel, and maintenance.
Do not forget to factor in delivery. You can build it into your price or charge a separate fee. A flat fee of $75 for deliveries within a 20-mile radius is a common approach. This protects your margin from unexpected fuel costs.
Here are 3 immediate steps to take:
- Create a rate sheet with daily, weekly, and holiday prices for each cart type.
- Research the pricing of three local competitors to benchmark your rates.
- Calculate a flat delivery fee based on a 20-mile service radius.
Step 10: Maintain quality and scale your operations
Establish your quality standards
To keep customers happy, create a detailed maintenance log for each cart. Track service dates and hours of use. A good rule is to perform a full inspection every 50 hours of operation. This includes checking battery health, brake pads, and tire alignment.
You can also measure service quality with post-rental surveys. Aim for a 95% customer satisfaction score. A mistake some owners make is to ignore minor complaints. Tracking feedback helps you spot recurring issues before they become bigger problems and hurt your reputation.
Know when to grow
Growth should be data-driven. When your fleet utilization rate consistently exceeds 80% on weekends for a month, it is time to buy another cart. Once you personally handle more than 10 deliveries a week, you should hire another part-time driver to avoid burnout.
As you expand, your initial systems may not be enough. If you spend more than five hours a week on administrative tasks, you might want to upgrade to rental management software. This automates bookings and inventory, which frees you up to find new partners.
Here are 3 immediate steps to take:
- Create a maintenance log to track service for each cart after every 50 hours of use.
- Set a fleet utilization target, like 80% on weekends, to trigger buying a new cart.
- Draft a one-question post-rental survey to measure customer satisfaction.
You now have the steps to launch your golf cart rental business. Success in this niche often hinges on reliability and great service, not just the carts themselves. With this plan, you are ready to build a profitable venture.
And when it is time to get paid, keep it simple. JIM lets you accept payments right on your smartphone for a flat 1.99% fee, with no extra hardware. Download JIM and you are set for your first rental.
