How to start a profitable dumpster rental business?

As the name suggests, a dumpster rental business simply means lending dumpsters (large bins) to municipal corporations or private individuals. 


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You may think dumpster rental is less profitable or low-level work, but actually, it is the opposite of that. This business is perfect, and as of now, very few people are aware of it, so it is an excellent time for you to grab this opportunity.

In this article, we will discuss a dumpster rental business plan that will help make good profits in detail. So a lot to know, a lot to discuss, and without wasting any time, let us now begin.

Advantages of Starting a Dumpster Rental Business

There are many advantages of starting a dumpster rental business. This type of business offers a variety of services, allows you to meet new people, and can help you save money and energy. This type of business also offers the opportunity to create a positive impact on the community. Before starting a dumpster rental company, you must know exactly what you want to accomplish. To begin, you should write a business plan. This will increase your chances of success and help you understand your market.

Legal Obligations to Fulfil For Starting a Dumpster Rentals Business

As a dumpster rental business owner, you’ll have a variety of legal obligations to meet. The first and most important of these is obtaining a general business license. Then, you must apply for a tax permit, occupancy permit, and Employer Identification Number (EIN) if your business will operate within a city. You’ll also need to pay for insurance. Depending on the size of your dumpster rental fleet, additional licensing and registrations may be needed.

Next, you’ll need to get a driver’s license. You’ll also need to obtain a CDL (commercial driver’s license), which allows you to drive a large roll-off dumpster. You may need to visit a state environmental agency in order to obtain a commercial driver’s license. Having a CDL, however, increases your safety on the road and improves your chances of success. A good business plan is a must for starting a dumpster rental business.

How much does a dumpster cost? 

Depending on the size, a dumpster can cost you about $1,000-$30,000. $1,000 for a stainless steel 4×6 dumpster that weighs about 500 kgs and $30,000 for a large size 30×30 dumpster that weighs about 20,000 kgs or 20 tons.

Note: Above mentioned sizes are in meter square

Dumpster (Buying vs. Leasing)

Since a dumpster is too expensive to buy, you can lease it for about 5-10 years and afterward earn by renting it. The cost of leasing is much less than renting, so you can make a significant profit in this method.

On the other hand, if you have funds, then you can definitely buy a dumpster. There is nothing wrong with purchasing a dumpster but trying to save a significant amount by negotiating, which will help earn more profits.

Business Plan to start a dumpster business

#1Decide a business name and logo

Deciding on the name and logo is the primary step to starting a business. A name and logo present the brand in the long term and also help to create goodwill. Although logo and brand name do not make a big difference in the dumpster rental, still you should focus on brand name and logo because it makes a difference.

For example- What comes to mind when you see a photo of half an apple? I think you understand the actual value of a logo and brand name.

#2 Choose your office location

You do not need to arrange a large area for your business because you are a rental company; you just need a small office in a perfect location where other persons can contact you to rent dumpsters. I know the renting cost will be high, but it will help you to gain more customers.

Apart from that, you just need some vacant land for storing dumpsters which you can easily take on significantly less rent.

#3 Analyse your competitors

Although there is significantly less competition in the dumpster rental business, it still exists. So you should analyze your competitors in every aspect like dumpster renting charge, market image, number of years of starting, the scale of the business, etc. It will help you to make good decisions which will definitely help you to make decisions.

#4 Take important decision

Now you need to make critical decisions for your business like pricing and budgeting; these important decisions make the difference between riches and rags. So spend proper time making these decisions because they will help you make a lot of money from the dumpster rental business.

You can also take help from some advisors, although it will increase your expense, I believe it will be completely worth it.

#5 Start and advertise your business

Now execute your renting business after completing the above steps correctly. After that, advertise your business on billboards, on trucks, or on different social media platforms like Facebook, Instagram, etc.

Advertising can help you spread awareness in the market, so if you use catchy slogans with attractive pricing, people will definitely approach you to rent dumpsters.

#6 Treat customers well

Now treat your customers well by politely talking with them, offering them tea or coffee, ignoring some minor damages when they return the dumpster, or simply doing all the things to create a good relationship with your customer which makes him come again and again at your place for renting dumpsters.

#7 Focus on expansion

Now simply invest your profits in expansion. You may start the business with only one dumpster, but it is necessary to expand it because expansion is necessary for the survival of the company. If you hesitate to invest in expansion, then remember that your competitors will not crush your business.

Also, the expansion will help increase profits because you may need to pay $5000 for leasing one dumpster, but if you rent 10 dumpsters, you can negotiate with the owner, and your leasing cost may reduce to $4,000 or even $3,000 per dumpster.


Now let us summarise the steps of starting a dumpster renting business. First of all, you need to decide on a proper business name and logo, choose your business location and analyze your competitors. After that, take critical business decisions like advertising, budgeting, etc. At last, treat your customers well and focus on expansion, which will help increase the profitability of the business in the long term.

I think we have discussed a lot about the dumpster rental business. So now comes the time to say Goodbye, and as always, God Bless You All.

Other Businesses to try

#1 Apartment rental business

#2 Mobile Billboard business

#3 Car wash business

Frequently Asked Questions

How to make important decisions in the dumpster rental business?

Analyse your competitors because it helps you to take important decisions like pricing, budgeting, advertising etc.

Should I lease or buy a dumpster?

I personally recommend you to lease dumpsters because it is iess risky, and you can easily lease 5-10 dumpsters with the money of buying a single one.

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