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Theft is a major threat to your rental company 

Nearly every day you hear about a rental store being the victim of a burglar or having equipment stolen by conversion. Theft of equipment is, indeed, a big problem for rental dealers and it's getting worse all the time. What's more, you're not safe anywhere. Equipment theft occurs in inner cities, suburban areas, small towns and even rural areas are increasingly targeted.

Every year, hundreds of thousands of pieces of equipment are stolen in the United States — billions of dollars' worth. And more than half of these items are never recovered. Of those that are recovered, most are found within 65 miles of home base, usually in a few days.

When the economy is strong, the market value of equipment is higher and the theft value is higher as well. Result? Incidents of theft increase. The more thefts, the more insurance claims, and the more claims, the higher the cost of insurance for everyone.

Many of you reading this article have firsthand experience in equipment theft. If so, I hope you prepared in advance by purchasing good insurance coverage from a reputable insurance agent and company. And I hope payment was prompt and adequate so that you could easily replace the stolen items and sustain only a short interruption of your business. But even if this was the case, I know the experience was not pleasant — and something to be avoided.

I spoke earlier of your being a “victim” of theft. You might ask when the “inevitable” will strike your business. “Is the situation so bad that I can do nothing to avoid equipment theft?” No. This article and Part Two in next month's issue of Rental Management will discuss some practical things you can do to avoid being a victim.

It's obvious that you want to do everything possible to make it difficult for the thief. If you make your rental center too much trouble for him, chances are he'll skip you and move on to greener pastures. Your first question may be: How much will that cost? Yes, many of the defenses against theft will cost money — but not all of them.

Our industry suffers from three types of theft: theft from premises, theft from job site and theft by conversion. This article takes up the first one, theft from premises (often called burglary).

What can you do to protect the equipment in your buildings and lots from theft that occurs while your business is closed? While most of the following actions are obvious, it is amazing how many rental stores do not put them into practice.

• Keep strong locks on all doors and be careful to whom you distribute keys among your staff. More “burglaries” than you might suspect are inside jobs. After all, your employees know what equipment you have, its value, where it's kept and how to get to it. Be cautious in your hiring procedures. Unfortunately, you must be watchful of employees.
• A central station burglar alarm system covering all building openings and all perimeter fencing is very important. These are available from many sources and serve as excellent theft deterrents and are invaluable in the event of an actual burglary.
• Your entire lot should be protected by an 8-foot fence and razor wire along the top is a good idea. Be sure all gates are secured with strong locks.
• Police departments say that one of the most cost-effective deterrents to nighttime theft is a building and lot that are well-lighted. Even in the wee hours of the night, a thief will think twice before entering a lot that is bathed in light.
• How about the use of guard dogs? Well, there is good news and bad news. The good news is that they can be a very effective theft deterrent. The bad news is that a dog can easily be rendered useless by drugged meat or by being shot — yes, it has happened! Guard dogs might also increase your liability exposure by getting loose and injuring the public — that's also happened. You'll have to weigh the pros and cons.
• A theft-deterrent method that's gaining popularity is the use of wheel locks on trailer-mounted equipment. These relatively inexpensive items are very effective and come highly recommended for use both on and off premises.
• Another recently introduced method is satellite tracking devices that are inconspicuously mounted on larger, valuable pieces of equipment. Rental store owners who have benefited from these devices swear by them. You need to check this out.
• You're all aware of rental stores that paint their equipment a distinctive color so it is more readily identifiable if stolen. This has proven to be effective in some areas, and who knows how many thefts have been averted because the thief doesn't want to risk stealing such equipment? However, there are reports that sophisticated theft rings will immediately paint the equipment an inconspicuous color to avoid detection.

Theft deterrence is worth the effort and the cost. If you've experienced a theft, you know how much time and aggravation are involved, not to mention the revenues lost before the stolen equipment can be recovered or replaced. And keeping theft claims off your record will mitigate any future insurance premium increase that may result from such losses.