This Simple Rental Business Could Change Your Life!

What if I told you you could pull out your credit card, buy a bounce house like this for 1600 bucks and make 1600 bucks in profit every single month? Or better yet, buy 10 of these for 16,000 bucks and make 16,000 bucks every month in profit. But today, we dive deep on the bounce house rental business, so stick around. Martina, how are you? Chris, great to meet you. Good to meet you. Meet Martina and Adan. So Castles of Dallas.

Yes.

Where are we right now?

We are in Seagoville.

Seagoville, suburb of Dallas.

Yes.

And what is your business?

We do inflatable rentals. We also do repairs and manufacturing.

Okay, and how long you've been in business?

We've been in business. This business has been here for about 10 years. And. And then we took over four years ago.

Okay. And Adan started the business?

Yes, he did.

What made him want to start?

He has been in this business before, so he wanted to learn more about it. He also wanted to start a business, make more profit, just better life.

Was he an employee and a competitor?

He was an employee before.

Okay. And he kind of learned the tricks of the trade.

Yes.

Branched out on his own?

Yes.

Okay, so you started with two inflatables in your garage?

Yes, we did.

How much did those cost?

400 each, and they were used.

Okay, and where'd you buy them from?

Marketplace on Facebook.

Okay. Ten years ago?

No, it was six years ago, I would say.

Okay. And how did you find your first customers? Was that on Facebook Marketplace as well?

Yeah, Facebook Marketplace.

Okay. Has that changed today? Are you still finding.

Right now? We do have a software, we use that that helps us out with rentals. We have our website and everything. So a lot of people, they just go to the website. They either Google us and they'll find us on the website. And also we still use Facebook Marketplace. I think it's still a great place to get more clients. Now, we do promotion on Google. We do stuff like that. That's just to get out there. So mostly I get call calls and my website leads.

Do you do paid Google Ads?

Yes.

And that works pretty well for you? Okay.

Yeah, I recommend it.

Yeah. You want to show us around?

Yeah.

Okay, I'll follow you.

Sure. I would say we have now about over 40 inflatables.

Okay.

We have our bounce houses, our bounce houses with slides. We have mini bounce houses. We have water slides, we have obstacle courses, and we have interactive games.

Okay. How do you decide what to buy?

I would say it's buying used units and just see what hits more. What Goes out more.

Yeah.

What do you rent out more for us? I would say my strongest unit is going to be our obstacle courses.

Interesting.

Our obstacle courses are really a big hit. A lot of people like those because it's for kids, smaller, bigger, and adults.

Has that always been that way or is that a new development?

I would say it's something new. I think as the time has gone by, a lot of people do a lot of different designs, a lot of creativities and. And when it comes with bigger units, obstacle courses where they can run, jump, and do all kinds of stuff, that's something a lot of people like more than just the regular balances.

Have you seen a difference in the business before and after Covid, have there been changes?

Actually, yes. During COVID there was a lot of rentals, a lot, because everyone was at home. So everybody would just, you know, take a bounce house home so the kids can entertain. So it has gone down. But I will say that I think it's because there is a lot more competition. There is a lot more people just starting it from scratch, and they just want to go ahead and do it. And I think that's what's really changed, honestly. But the other thing that has changed is that a lot of them are newer, more modern, more. It's.

It's more sophisticated. So it's kind of like if you can't beat them, join them. And in your case, it's like, if you don't want as many competitors, then sell to your competitors. Right. Repairs or new units?

Yeah.

That way, the more competitors you have, the better you do because you're selling to them. What percentage of your competitors do their own repairs or manufacturing?

What percentage, if any? No, not that many.

So you've got about 40 units in here.

Yeah.

How many of these did you make yourself?

Oh, that's a good question. Like 15 of them.

15. And the rest are you getting used from the United States, new from China?

We do a lot of. We get them used. We get. We do purchase. It's always good to have variety. I feel like if you have variety, different styles, colors, and all, you get to branch out more. You get to get whatever client you know comes your way.

Yeah. All right. In that way, are you able to say your client calls, say, hey, I want an obstacle course. We're sold out, but this water slide is awesome. Are you able to kind of do that, divert clients to other parts?

You could always do that with any type of inflatable. I mean, if they want an obstacle course. Hey, but you Know, they're all not. They're booked this weekend, but we have a bounce house with a slide.

Yeah.

You know, that. That's something. Something that they could also like. And then we would go if. If anything, we would try to help them find something that we know they're gonna love.

Yeah. How much do one of these weigh on average.

Bounce house? Anywhere between, I would say, 80 to 120 pounds. Water slides, it can be 200 to 250. Obstacle courses, same.

Okay. Are you using dollies to move them around?

We do. So we have vans that we use. I personally like the vans because they're closed. They're in there. They're spacious. You do get a lot of stuff to. You can just put a lot of stuff in there.

Okay.

And that way you. It saves you trips. But we have used trailers, we have used box trucks. Everything is good for that.

Whatever it takes.

Yeah.

Yeah.

I had a rental about, I would say two weeks ago, two or three weeks ago. And it was a big rental. It was about three inflatables, really big inflatables. And then it was, I would say, maybe 100 chairs and then 10 tables. It was a lot.

Yeah.

So what we did is I have a Tahoe. We hooked up a trailer to that. We put whatever we could fit into the trailer, and then we took the van. And then we took another van.

Wow.

So whatever it takes, we. We. We take it.

Yeah.

Yeah.

I gotta ask, what does a job like that pay?

Anywhere between 1,000 to 1,500.

Nice. Okay. For a few hours of work, it's.

We do overnights.

Okay. So it's a few hours of active work on your part.

Yeah.

Okay. Take down, set up.

We set up. We take down. We do all that good stuff.

Is anyone on site during the rental or. No?

It depends if they require it and they need it. We do do on site. Just staying there, watching, observing and everything.

Okay. How much extra does that cost?

It will cost anywhere between 100 to 200.

Okay. For the entire time hour. Okay. Per hour?

Per hour.

Oh, nice. Okay, so when are you setting up stuff out here? What calls for that?

Our cleanings.

Okay.

Every. Every cleaning starts from Monday throughout the week. We just come out here, set them up, inspection everything, make sure nothing's ripped, holes, anything like that. And then after that, we just do the cleaning.

Now you're on a busy road here. Do you ever. Do you ever get business just from drive by traffic?

We do. We get a lot of that because I like to sometimes during the week. I'll inflate one of the bounce houses and leave it out there just to like so they can. Oh, look, there's a bounce house though. That's always, that's always helped us and that's why we're, we're here in this area and we haven't left because it's good traffic.

Yeah, most people don't think about that. They look for the cheapest real estate. Not knowing that like a location like this could save them $2,000 a month in Google Ads. Yeah, right. Because of the amount of eyeballs looking at it.

Exactly.

So you're renting out tables and chairs. What's the thought process behind that?

Tables and chairs. Honestly, I really like it. Especially because we're an open location where they can just come in, hey, I need a couple tables and chairs. Chairs for this weekend.

All right.

Yeah, we can get them for you. And they just pick up and drop off or like he said, if you, if they ever need a rental, a bounce house. But hey, I need tables and chairs. We can always do a service where it's a package deal.

Okay. So you're just trying to fill the demand that people are asking for, right?

Yes. I, I like to think that we're one of the ones that are a one stop shop because we have a little bit of everything.

But that comes with a trade off. Right. Like if you're only bounce houses, you're gonna have to say no a lot. But you could be more streamlined. Right. But if you're a one stop shop, you say yes more, but it's more complexity to manage.

Yes.

Has that been difficult to manage different types of rentals or.

I think it has at the beginning because you're starting off and you don't know really what you're getting yourself into. But once you start just doing it and just start to get a little bit more organized, it's something really easy to keep catch on and it, it just becomes natural.

What does this cost you and what do you rent it out for?

They're $14 each. When you purchase them new, usually they come in a box of 10.

Okay.

So you would have to purchase the 10 to get a full box. And then we rent them out for a dollar fifty.

Okay.

Per day or it, it depends if it's. It'll still be A$50 even if they choose a couple hours or next day.

Okay. Okay. So you rent it out 10 times and it's paid off nice.

Basically.

And the tables, I have some of these tables. These are like lifetime six foot tables.

We get them at Sam's.

Okay, and those are like 80 bucks?

Yeah, right now they're 80.

Yeah, good guess. Okay, and what do those rent for.

The tables by themselves? They're $5 each. And then if you get a package deal, the table and six chairs, it's $12.

Okay. Any guess on what percentage of your rentals come with tables and chairs?

I would say more than 75%.

Wow.

Yes.

That's significant.

Yeah.

What. What type of event is most common for you? Is it a birthday party, a school event?

Birthday parties?

What does something like this sell for?

A thousand? Five hundred.

Thousand five hundred plus tax. Now, I know that in China, you've got to pay a lot for shipping. What would something like this cost from China? And how would the quality difference?

I think anywhere between 1700 and 2000.

So even more money.

Yeah.

Then you gotta wait. You gotta pay for shipping.

Shipping.

Is the quality similar or worse?

I would say it's the same. We use the same material, same ounces, same thread and everything.

Interesting. It'd be really easy for you to say, oh, it's low quality. It's crap over there. But if it's the same, it's the same.

I would say it's the same, because that's what they say. They have the material, the ouncing and everything. But to me, this is the standard. This is a standard. That's how you make them. The difference that we have is that we offer warranty with our units and we repair them here. If you order them anywhere out there, you know, how are you going to send it back?

Yeah.

Or.

Yeah, that's the hard part. I've been importing stuff from China for, like, 15 years, and if you're importing shirts, you could get a box of 50 shirts, and shipping would be be 80 bucks. Right? It works.

Yeah.

But something like this, if you get it in a container, sure, shipping isn't that expensive, but who needs a container full of these?

Yeah.

So to order just this alone would probably be like 400.

Exactly.

So you're saying you can manufacture it cheaper and there's no shipping, and you'll warranty it. And the warranty is all in house because you fix them as well.

Yes.

Interesting. So from what I understand, you or Adam took over this business from his employer, right?

Yes.

I think that's an interesting story, because there are 10,000 baby boomers retiring every day, and 10% of them are business owners. And most people don't realize that most businesses like this, they'll never sell. They'll Just close down. Yeah, the owners don't know they can sell. They don't know how to sell it. Is there a broker? Most of the times businesses like this, they'll just lock the door, walk away one day. And so what was that process like, taking over this business. Business from the previous owner?

Well, honestly, the previous owner, she wanted to retire already and she was just ready to retire, but she was, she was waiting to find someone that knows this business and also likes it and will take care of the business and keep it going.

So she saw promise in Adan.

Okay.

And did she approach him first and said, hey, what would you think about this? Or.

Well, he came and applied and he started working with her and then yeah, she, she approached him and told him, you know what, I see that you like doing this. I can see that you're a good, hardworking man. I want to sell the business.

Okay.

What do you think about it?

So then you raise money from friends and family and.

Yes.

So how many employees do you have here?

We do have two employees.

Okay. And then do you have contractors in the off season that you use for busy times?

I would say contractors, because this is a business that is family owned and family run. So we do have, you know, his brothers, nieces, nephews that like to help us out and also my kids.

Okay. But most of the stuff you guys are managing yourselves, you're doing deliveries, you're picking up, answering the phone.

Yes.

Okay. Have there ever been any like, stressful moments? Particularly stressful?

I think the stressful thing about this business, mostly in the rental, it would have to be just being on time.

I mean, the simple things are the important things, but it's the things that no one does. Right. Answer your phone, show up on time because there's a birthday party at 3:00 clock and you're there at 3.45.

Yeah.

It doesn't work.

Yeah, exactly.

What is like an average busy week look like for you in the summer? How many jobs are you doing? How many bounce hustles are out at any given time?

I would say for rentals we would get anywhere between 25 to 30 rentals a weekend during the summertime.

What is an Average ticket size? Four or $500.

Yeah.

Okay.

Yeah, anywhere between there. Anywhere. It just depends. If it's a regular bounce house, they start off at 100 and it just goes up there.

Okay. And how are the, what are the margins like in this business?

The percentage is really high.

Yeah.

For rentals it's really high. It's something that's could be all year round. You could probably make a hundred thousand a year.

Yeah. Okay.

Anywhere from a hundred thousand and up.

Okay. And if you, if someone buys a 1500 or $1700 unit, how long will that last if they maintain it? If they keep repairing it, could it.

Oh, they can last years, seven to eight years. Using it every weekend.

Every weekend. And after that it's just not worth repairing anymore.

Yeah. It gets to the point where the material is just too worn out that it's not worth repairing.

So let's say you've got a sixteen hundred dollar unit, four hundred dollars to rent, first four rentals. Let's say it's rented every weekend. First month it's paid off.

Yeah.

Right. After that you're making 1600amonth. Top line, you still have your gas and your time. I mean, that's like 18,000 a year in revenue from $1,600. Bounce house. Yeah, that's pretty good.

It is. It really is.

Get 10 bounce houses, 180,000 a year. Assuming you keep them all rented. Assuming it's not seasonal. A lot of assumptions. But then when you start adding in tables and chairs and water slides, it becomes less seasonal the more stuff you add, right?

Yes.

Do you do stuff for weddings at all?

Yes. We have tents, we have tables and chairs. I also have round tables, heaters when it's wintertime.

Okay.

That good stuff. And I also rent out acs.

Okay. For the average operator that owns say one bounce house, how difficult would it be to them to keep it rented all the time?

I feel like as long as you're promoting yourself and you're out there, you know, hey, I got this bounce house. I'm ready to rent out. And just make yourself known. Make your page. Social media right now is a big play. And all this.

Yeah.

To be honest, make videos, take pictures. I take pictures every time I set up, even though I have probably a million pictures of the same one. But it, it's just, you know, putting out there your stuff every weekend. What you rent it out. That will give you more clientele, that will help you out to make a lot of money.

Even just to your personal social media page.

Yeah. Yeah, even. Yeah.

Okay. So Facebook Marketplace, posting to social media, even if it's not your business page, just talking to friends and family. Most people aren't going to have a retail location.

Right.

They're just staying out of their house. You kind of have to have a trailer of some sort, right?

Yes.

You can't really do it in a.

Car and a truck.

A Van would work though, right? Like a minivan, even if you put the chairs down?

Yes.

Okay, so that's a really good side hustle for anyone with 1600 bucks.

Yes.

If I were starting this business today, you. You probably wouldn't advise me to only buy one, Right? Because once. If you run out one, then you can't do anything.

When clients come and ask me, look, I'm looking to start off, what do you recommend? I always tell them to get a bounce house with a slide.

Okay.

Our bounce houses with slides are detachable. Everything is detachable. You can detach the pool. The bumper, like, if you use it dry, there's a bumper where they just hit. And that's detachable. The slide is detachable. So you could rent it out by itself with a slide or with a pool.

Okay, so would you say that's like the most in demand item?

Yes.

Your bounce house with a slide, is that a water slide or it's both? It could be either one. Okay. If I were. If I wanted two bounce houses, should I get two of the same? Two of those or like something different?

Plus I might get something different just to have that variety.

Yeah.

I've always recommended either get a bounce house and a water slide or a bounce house with a slide and a water slide.

Okay. Now, if you were starting this all over again 10 years ago, what would you do differently? Or what would you counsel someone to do today that you would have done differently?

He said that he recommends to buy a new unit when you start off. Buy new units.

Tempting to buy used, I'm sure.

Yes, it is. But you don't know how long they're going to last you. You don't know what condition they're in. Like, it's better off to start with a new one and let it last you years with warranty, cleaning it, taking good care of it, than to start off with a used one and then having to buy more later on.

Okay. Is insurance a big expense?

It is, but at the end of the day, it's something you have to have, especially here in Texas.

What do you pay for insurance per month?

I would say we pay anywhere between 7 to 10,000. A year.

A year? Okay. I think insurance scares a lot of people. I think insurance and liability is a big reason that people never start anything. And frankly, I think a lot of times they use it as an excuse to not have to start something. I post ideas all the time, and everyone says, what about insurance? What about insurance? You buy it, you buy insurance.

You have to you're good. I think it's something that it's a hassle, it's sometimes a headache, but it's something you have to have and it brings you. It opens more doors to you. Because if you have an event that they need last minute, a bounce house and you're ready to go, you have your insurance, you have your registration, everything's ready to go and you can just go and set up. If you don't have your insurance and it's in a venue where they need insurance, they need this, they need that, and you don't have it, you just lost money, right?

Yeah. Okay.

So. Yes.

All right. Martina, Adan, thank you for your time today. If someone's in the bounce house rental business or they want to be in the bounce house rental business, where can they find you?

We are located in Seagullville. You can find us on Google. Castles of Dallas llc. We do have a website that's for our rental business. It's Castles of Dallas Dot com. It also has our information for rentals, repairs and manufacturing. They can also visit our Facebook. Also Castles of Dallas, Instagram, same Castles of Dallas.

Okay, thank you.