Things You Should Do Before Starting a Dumpster Rental Business

Dumpster Rental Business

Trash disposal is an essential service for individuals and businesses. Nobody likes to have garbage lying around their property, and the cost and effort of making regular trips to a local dumpsite are both inconvenient and impractical. At the same time, no one can stop generating trash. As a dumpster rental business, you can take advantage of this situation. That’s right; you could do so by starting your very own dumpster rental business.

This market is a fantastic option for people looking for business opportunities that don’t necessarily require a lot of capital. The market revenue for dumpster rentals has been steadily growing for the past five years, according to IBISWorld[MK1]. The start-up cost for a dumpster business can be reasonably low, potentially allowing you to even make a full recovery on your investment in as little as six months! However, before you take the plunge, you need to learn about the industry and make a plan. In this article, we’ve provided everything you need to know about starting a dumpster business to help you live out your dreams of finally being a business owner.

How to Start a Dumpster Rental Business?

Let’s start with the basics first. Starting a dumpster rental business is no different than starting any other business. Here’s what you need to do to start your dumpster rental business:

Business Plan

The first thing you need is a business plan for your dumpster business. Carry out thorough research of the market and find out what the rental fees are for dumpsters in your area. It would also help to determine which areas have a trash problem, such as places with factories and industries. Based on this, create a sound business plan. Make sure that you also include a budget for your first five years of business as well as a five-year, ten-year, and fifteen-year development plan in the document. This plan will help you stay on track.

Business Registration

Next, focus on the legalities and technical aspects of your new business. Start by deciding on a name. We recommend picking something short and catchy that is easy to remember. Register your business and apply for all the necessary licenses and permits that your state mandates for running a dumpster business.

Marketing Strategy

Like any business, your dumpster rental company needs a marketing strategy. Based on the market research and your business plan, fix a marketing budget so you know how much you have to spend on this function. Next, assess your target market and figure out how to effectively communicate with them and solve their problems. An excellent place to start is online reviews on competitor businesses. By discovering what problems customers in the market are currently experiencing, you can focus on eliminating those issues in your business and gain a competitive edge.

Company Profile

With the formalities out of the way, you need to create a company profile that you can use to market and promote your business. Hire a graphic designer to help you build a logo and an introductory pamphlet or presentation based on the medium you prefer to use. Using this profile, you can approach potential clients and start offering your dumpster rental services.

What do I Need to Start a Dumpster Rental Business?

The next thing you need to do is find out what you need to start a dumpster rental business. There are three things you must have. This does not include the personnel you must hire, such as drivers and managers. Let’s take a look:


For dumpster rental services, the main thing you need is dumpsters. For starters, we recommend buying three to four small and at least two large dumpsters. This will allow you to target different markets at the same time. Alternatively, if you want to focus solely on the industrial market, you should consider starting a dumpster trailer rental business and only buy large dumpsters and dumpster trailers.

Storage Space

Dumpsters take up a lot of space, and until you have your own warehouse, you will have to arrange for alternative storage space. The easiest way is to rent out a storage unit and use it to store your dumpsters and other supplies.


Finally, the last thing you need for your business is a truck for transportation. However, since this is a significant investment, you can delay it for a few months and opt for renting until your business gets off the ground.

How Much Does It Cost to Start a Dumpster Rental Business?

For a dumpster trailer business, the starting cost can be less than $20,000, or it can cross $200,000. The figure depends on the scale at which you’re starting and the things you want to rent or purchase. So, how much does it cost to buy a dumpster? Well, to help you get an idea of the start-up cost, you can refer to the cost breakdown below. That said, you should note that these costs are only an estimate and can vary depending on your location, economy, and other conditions.

  • Small Dumpster:                  $1,200
  • Large Dumpster:                  $6,000
  • Roll-Off Truck (used):          $30,000
  • Roll-Off-Truck (new):          $150,000
  • Storage Unit:                        $2,000/month
  • Company Registration:        $500

In addition to the above, you will also have to cater to miscellaneous costs such as insurance, and permit fees, which can range anywhere from a few hundred dollars to few thousand. However, with the above numbers, you no longer have to search for how much it costs to buy a dumpster or a roll-off truck and can easily calculate your approximate start-up cost.

How Profitable Is a Dumpster Business?

The dumpster rental market is extremely promising, with excellent earning potential. So, how much can a dumpster rental business make? On average, a single dumpster goes for about $400 a week. However, that number does not show how much of it is profit.

Since there are many costs involved in running a dumpster business, you have to cater to expenses to figure out what your actual earning would be. Statistics suggest that in the first year of business, you can make up to $40,000 in profit (which can vary significantly based on your circumstances and other factors).

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How to Start a Roll-Off Dumpster Business?

Starting a roll-off dumpster business is pretty similar to starting a regular dumpster rental company. The only difference is that you need to purchase a roll-off truck. As seen above, a roll-off truck can cost anywhere from $30,000 to $150,000+.

If you have the extra money, buying a roll-off truck can help you save tons of money in vehicle rent. However, since it is a significant investment, you have to make sure that you do your research before buying the vehicle. This buyer’s guide can help you in the process. The basic requirements you should look out for are:

  • Minimum Horsepower:          425
  • Minimum Rear Axle Rating:   46,000 pounds
  • Minimum Front Axle Rating:  20,000 pounds
  • Cable Roll-Off Hoist Capacity: 75,000 pounds
  • Cab to Axle Measurement:     200 inches
  • Length:                                 24 feet

Final Thoughts

A dumpster rental business is a great opportunity for those willing to invest time and effort in building an enterprise. You can start small with a team of two to three people and slowly scale your business over the years.

Now that you know all the basics about starting a dumpster rental business, such as the answer to the question, “How much is a dumpster to buy?”, nothing is stopping you from taking the next step and starting your very own business venture.

FAQs – Frequently Asked Questions

What licenses and permits are needed to run a dumpster rental business?

Each state has its own regulations and permit requirements for running a dumpster rental company. Generally, you will need permits for placing your dumpsters on the streets. Additionally, the truck driver will need a Commercial Driver’s Licence (CDL).

What are dump trailer business requirements?

For a dumpster trailer rental business, the requirements are the same as a dumpster rental company. However, it may be more costly because of the price of dumpster trailers. So, make sure you have a solid dump trailer rental business plan before you start.

Do you need any qualifications to run a business dumpster rental?

No, there is no formal qualification required to run a dumpster rental business or a         dumpster trailer rental business.

What other miscellaneous costs are involved with a dumpster rental business?

Miscellaneous costs can include insurance, permit charges, staff salaries, fuel expenses, vehicle maintenance, marketing costs, and general day-to-day operations costs. There is no fixed estimate for these costs, and the amount would vary based on your requirements.

What is the best truck for a roll-off dumpster rental business?

Many vehicle manufacturers make roll-off dumpster trucks, but the most popular are Mack, Peterbilt, and Hino.

Can I lease a roll-off truck?

Yes, leasing or financing a roll-off truck is an excellent idea if your budget is low. You can pay as little as $10,000 as a down payment and lease your truck from a leasing company or bank.

What is the size of an industrial dumpster?

An industrial dumpster is generally around 20 yards in size.

How much does a commercial dumpster cost to buy?

A commercial dumpster can cost anywhere upwards of $5,000. However, most quality 20-yard dumpsters cost within the $10,000 range.


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