Starting a Motorcycle Rental Business: From Planning to Profit

At one point in their life, every motorcycle lover has toyed with the idea of starting a business devoted to these wonderful machines. Such thoughts come naturally to those who want to turn their life passion into a source of revenue. The concept of starting a motorcycle rental business is among the most popular ones. But is this idea viable and is it even worth trying? 

No guarantees can ever be given when it comes to starting a business from scratch. Yet, we believe that with a clear strategy and a solid business plan, starting a rental business could be quite a successful venture.

In this article, we will provide you with a brief overview of what to consider and what to expect when entering the rental market. Our focus will mainly be on enduro bike rentals, although rental options are diverse and may include renting out your private motorbike. 

Your target audience and current demand

Active recreation has become so widespread and popular nowadays that customers are getting more picky when choosing a new option. They are constantly looking for fresh experiences and new ways to spend time outdoors. In 2023 alone, motorcycle rentals ranked among the top 3 most popular leisure activities in the CSI region, with nearly 20% of respondents choosing it. This is a remarkably significant percentage for this segment of the entertainment industry.

Notably, the target audience is changing, with more women aged 25-35 showing interest in extreme activities. Both men and women are increasingly seeking adrenaline-fueled activities. For many of them, one ride may turn into a regular habit. Many become loyal customers, purchasing the service on a weekly basis. 

Young people are also getting actively involved in motorcycle culture. The number of young people with a stable income is constantly growing, driving demand for rentals by 20% among the 18-25 age group.

Additionally, gift certificates have become one of the most in-demand services in this market. People are becoming more selective when it comes to choosing entertainment and equally thoughtful when picking gifts for friends and loved ones.

Evaluate risks and be ready for challenges and high initial costs

We are not going to sugarcoat it for you: starting an enduro motorcycle rental business can be a serious challenge that requires investment, effort, and the ability to take risks. Launching an enduro rental business from scratch is quite an adventure that may not always ensure smooth sailing. 

The first year will be the toughest one: buying motorcycles, finding a suitable location, and attracting customers will all require significant investment without a guarantee of quick returns. However, with a smart approach, persistence, and passion, success will come in due time.

First and foremost, you will need to consider the costs associated with building a motorcycle fleet and maintaining it in proper working condition. For a fleet of around 10 enduro or pitbikes, you will have to spend between $20,000 and $40,000. Let’s assume, you will buy a mixture of mid-range enduro bikes and pitbikes for motocross: 

Enduro Bikes (6 units) — Mid-range models like Sharmax Power Max 250/280/320
Cost per unit: $2,500 - $3,500
Total for 6 units: $15,000 - $21,000

Pitbikes (4 units) — Entry-level bikes like Sharmax Power Max 145/190
Cost per unit: $1,500 - $2,000
Total for 4 units: $6,000 - $8,000

This brings us to a total fleet cost of approximately $21,000 - $29,000.

Plus the safety gear, workshop and basic maintenance tools, facility rental and insurance will make your initial costs even higher. 

Summary of Initial Costs

More things to consider

Apart from allocating a hefty sum for initial investment, you will need to consider several other factors crucial for the success of your rental business. 

Location

A good location accounts for 80% of the successful venture. Ideally, this should be a versatile uneven landscape not too far from the city. A territory with a forest, sand, rocks or hills will be your perfect choice.

You will usually have two main options for organizing the rental process: 

1. Taking a group outside on your rented bikes to any forest or land that is publicly accessible and not part of natural preserves, parks or any cultural heritage sites. A regular public forest works just perfectly for this purpose. Since dirt bikes are considered sports equipment, riding them in these areas doesn’t require a driving license. 

2. Leasing a dedicated piece of land suitable for off-road riding and fitted with special trails and tracks. Although this option requires a rental fee, it is better in many ways. Safety-wise, all your riders and motorcycles will stay in one place in a controlled environment, and the risk of theft or damage significantly decreases. Moreover, with instructors always present, the chances of accidents are greatly reduced.

Motorcycle models

Different riders come with different body builds and levels of experience. To meet their needs, you will have to bring some versatility to your fleet.

Let’s start with pitbikes. These are the most common vehicles in enduro rentals. But the funny thing is that they are actually the least suitable for rental purposes. You may often see that these bikes are given to literally everyone, regardless of their weight and height. This is a big mistake as it leads to a worn-out suspension. Pitbikes are designed primarily for teenagers and women under 164 cm in height. Even for them, pitbikes should be just a starting point. Most riders only use them for two or three sessions before gaining enough confidence and skills to switch to larger motorcycles. 

Models like the Sharmax Power Max 190 are a good example of an entry-level pitbike. For very young riders, consider having at least one option of an electro model such as the Sharmax Electro Expert Pro 190 S1. Both bikes are light and have a low seat, which is exactly what a beginner needs. 

Moving on with the assortment, your next pick should be mid-range bikes built on a frame inspired by the KTM 85 from the early 2010s, a design that has since been adopted and slightly improved by many manufacturers. For example, the Sharmax Expert Pro RXP 300 enduro has a duplex frame, full-sized wheels, and a reliable suspension system with an inverted telescopic fork. 

Very often such motorcycles have a lowered seat making them suitable for riders starting from 165 cm, and with proper suspension adjustment, even from 160 cm. One undeniable advantage of these bikes is their well-performing suspension. Another bonus is its extended wheelbase, which significantly improves stability, even at high speeds. So, we have a mid-level entry bike with decent technical specs. The vehicle easily overcomes ditches and bumps, handles smoothly, and is perfectly suitable for both track training and short-distance rides. A good option for those who are still gaining experience and need a manageable and safe machine. 

Finally, full-sized enduro motorcycles round up the ranking. These machines are not for everyone, and definitely not for beginners who are trying off-road riding for the first time. What is more, teens and women might not meet the height requirement. A full-sized enduro bike is tall, with a seat height averaging between 889 mm and 965 mm. Therefore, they are best suited for riders at least 175 cm tall. Leave them for experienced riders who are confident enough. 

Models like the Sharmax Expert Pro RXP 450 are ideal for average-height riders between 170 and 180 cm. The bike is comfortable, easy to handle, and perfect for long-distance rides. It features an advanced chromoly frame, known for its stiffness and reliable performance. Overall, such bikes impress with their well-thought-out design and solid construction.

We have outlined three key types of off-road models that we believe are good for a rental service. However, it’s up to you to decide who will be your main audience and how much you are willing to spend on the fleet. Anyway, you can always expand it later when you start generating steady income. In the meantime, pitbikes and mid-range enduro bikes will get the job done. 

Calculating potential profit

The sweetest part of it all is, of course, the reward that you get from running the business of your dreams. After taking care of all the costs and gathering the courage to start, let’s calculate what profit you can potentially gain.  

When setting prices for your motorcycle rental, first study what your competitors offer. This will help you come up with appealing deals for new customers, especially at the initial stages of your business development. Also, the price range will largely depend on your country and city. 

We suggest you adhere to the following pricing strategy: 

Set the price of a riding session at a minimum of $50 per hour. Based on this, your pricing will go as follows: 

With an average of 200 customers per month buying a 1-hour session, your total estimated monthly revenue will be around $10,000. 

Assuming you invest enough effort to attract new customers, you could aim for the following profit distribution:

• 30% Full-day rentals: 60 customers at $280 = $16,800
• 40% 2-hour sessions: 80 customers at $90 = $7,200
• 30% 3-hour sessions: 50 customers at $160 = $6,000

Therefore, your monthly revenue can be as high as $30,000. Over the course of a year, this could reach approximately $360,000.

Additional cash flow will come from selling training sessions to those clients who have set their minds to take extreme riding seriously. Offer them membership options with different packages: 

4 classes: $200 – $250 

8 classes: $380 – $460 

12 classes: $540 – $660

Each session will consist of a 1-hour personalized training experience. This way, you build stronger relationships with your customers and significantly improve customer retention.

And what about net profit? It depends on many factors that we cannot cover in full detail here, but very roughly, with initial investments and operating costs of around $50,000, and a yearly revenue of $360,000, your potential net profit could range from 30% to 50%. This means you could realistically expect to bring in $100,000 to $180,000 annually after covering expenses, if managed effectively and with consistent demand.

Final Thoughts

We hope this article was useful and helped you gain an understanding of what to expect from starting a motorcycle rental business. As you can see, it is a challenging yet an achievable task. Your key ingredient is the right location and a detailed financial plan.

Don’t hesitate to seek advice from experienced rental business owners, but don’t be afraid to bring in your own fresh ideas. Also, consider scaling your business. A successful rental model can be replicated in other regions with favorable conditions for enduro riding. Opening new branches will help you take your business to a whole new level.

Good luck on your journey!