Ara Rental Market Metrics Pdf Files
Contents. History Like most, initial rental software systems were developed in the 1970s and 1980s as custom or bespoke solutions provided for individual rental companies and occurred in parallel in locations across the globe.
In the last two decades a number of leading players have emerged providing solutions for everything from one or two user systems in a single store to international, multi-company and multi-location organizations. The rental industry itself continues to adapt and re-shape, as different players enter the market and national boundaries become less significant. The introduction and expansion of increasing numbers of manufacturers, such as, and into the rental industry as direct providers of rental services is also re-shaping the way that individual rental software providers adapt their software. Rental Management Software Functionality Rental management software should cover all aspects of a rental business in a systematic way including Financials (, and ), and reporting functionality allowing rental businesses to achieve all their business analytics from within a single package. Rental management software that integrates with 'off-the-shelf' accounting software can provide a viable alternative to the 'all-in-one' solutions. There are distinct industry requirements which need to be managed within the software, with one of the most important. These special features include:.
ARA Defines Methods for Calculating Equipment Rental Metrics. ARA Rental Market Metrics provides equipment rental companies a consistent way of calculating and reporting critical performance measures. It develops industry standards for the definition of a day, original equipment cost (OEC), and for the calculation of time (physical). Income Statement.: Reclassify one-third of the rent expense to interest expense and remaining two-thirds to “Depreciation - Capitalized Operating Leases” (a component of operating profit), and adjust operating expenses (or cost of goods sold and selling, general & administrative expenses) proportionally.
Reservations and Allocations management based on differing contract durations and customer requests. Dispatch/Pick-Up/Returns Process Management with the ability to manage partial dispatches and returns including and signature capture on delivery / pick up.
& Kits including sale or return items such as fuel. 'In Lieu of' or alternate items when equipment is not available as expected. Transport management including ordering in outside haulage and keeping track of revenue and cost against delivery vehicles. Product Exchanges and swap outs on live contracts. within live contracts. Contract Charging Profile determining when and how charging is generated including flexibility on excess hours charges, charging by hour / day / week / month etc.
Product Service Units and clock hour recording and maintenance triggers. Bill Processing for long term rental contracts on specific cycles , automated off-rent billing and additional charge management. Sale or Return consumables must be managed alongside rental products. Rent to Purchase or Rent to Own agreements with pre-determined contracts to take ownership of assets at a specific point in the contract. Product Revenue Accruals to provide revenue forecasts for rental contracts not billed at month end.
including Physical and Financial (dollar utilization) must be recorded. Stock Locations and tracking of equipment between locations including inter-branch or inter-store transfers, and for larger businesses inter-company transfers. Cash Customers/Contracts with cash drawer or till reconciliation and deposit management. Sub-Rent or Re-Rent management including the ability to initiate rentals from third parties to cover contract obligations.
Product Service Inspection/Repair including the ability to trigger maintenance activity based on rental status, off-rent damage reports and clock hours or other service units. where operators are sent out with the machine or equipment, and the rental charges are based on a combination of timesheet and standard rental charges.
This is generally referred to as. This is common practice in crane rental in Europe and in larger equipment rental in India and Asia. The ability to manage Safety Critical Equipment or Safety Critical Plant including the recording of inspection and examination certificates.
Rental Rate Optimization and. For rental business' working across country boundaries then additional special functionality may include multi-currency, multi-tax jurisdiction and multi-lingual needs. There are also specialized forms of rental which are either a precursor to a sale of a large piece of equipment, or a special business model normally referred to as. This specialized area has its own industry body and multiple rental companies across the world are represented. Implementing rental software Implementing rental software requires the same basic principles as any other software implementation. The International Rental News and Rental Equipment Register Magazines both offer advice on software implementation.
Real Estate Rental Management Software Rental management software for real estate properties can include end-to-end functionality such as marketing, rental applications, property management, payment processing, and accounting. The use of software in the property rental industry has become more frequent as large property management companies now account for one-third of the annual rentals in the United States. Industry bodies There is no specific industry body for rental software companies, although most of the larger companies work with either the American Rental Association or the European Rental Association.
The American Rental Association also has industry approved metrics that it recommends software providers follow. Country specific software companies will work with their own local rental associations. In Australia, the body is.
In New Zealand the association is. References.
Publically traded equipment rental companies such as United Rentals, Stamford, Conn., and Hertz Equipment Rental Corp., Park Ridge, N.J., already are using ARA Rental Market Metrics™ to calculate and report financial performance. “We use the ARA Rental Market Metrics and urge the whole industry to adopt these valuable standards,” says Lois Boyd, group president, Hertz Equipment Rental Corp. “ ARA RentalMarket Metrics are helping the industry to be more stable and as well as supporting it by helping people better understand the rental business.” Wynne Systems, Irvine, Calif., achieved ARA Rental Market Metrics certification more than a year ago from the American Rental Association (ARA), which first published the voluntary standards in a white paper released in 2011.
Since then, Automated Rental Management, San Antonio, and PFW System Corp., London, Ontario, Canada, have achieved certification with other software companies ready to follow. Rouse Analytics, Beverly Hills, Calif., also has adopted ARA Rental Market Metrics as the standard for its Rental Metrics Benchmark Service, which provides rental companies of all sizes with a comparison of their own key performance metrics relative to the aggregated performance metrics of the industry. ARA Rental Market Metrics provides equipment rental companies with a consistent way of calculating, benchmarking and reporting critical performance measures. It defines industry standards for the definition of a day, original equipment cost (OEC) and for the calculation of time or physical utilization of equipment, financial utilization, fleet age and percentage change in period-over-period rental rates. “The ARA has been working with software companies to license and certify the use of ARA Rental Market Metrics to further the growth and professionalism of rental companies within the industry and help analysts and financial institutions better understand the equipment rental industry,” says Christine Wehrman, ARA’s executive vice president and CEO. “It is a priority of ARA to make this business management intelligence available to rental businesses of all sizes,” Wehrman says. When used, ARA Rental Market Metrics provides equipment rental companies with a way to measure the performance of their business with a common benchmark that can be used within the company, by industry professionals, investors and analysts to compare a company’s performance over time and in relationship to a competitor.
Ara Rental Market Metrics Pdf Files Free
More information about ARA Rental Market Metrics is available online by visiting and clicking on “ ARA Rental Market Metrics” under the “Industry Resources” tab. An official publication of the American Rental Association. Produced by Rental Management Group.
Discovery Database
Copyright © 2013 Rental Management Magazine all rights reserved.
Comments are closed.