8 Steps to Start a Dumpster Rental Business

dumpster rental business

Venturing into the dumpster rental business might not be the first thing that comes to your mind when thinking of delving into the business world, right? 

Well, before you write it off, here is a great blog post that will make you realize that the dumpster rental business is quite a lucrative venture, more so in areas with inadequate rental resources. 

Think about it this way: Waste disposal is one of those tasks every person must do. It’s obvious then that a dumpster business can be such a hit, especially if you’re well equipped to start and run it. One great thing about the businesses is that you benefit from the dumpster’s rental fees time and again, hence enjoying a great profit for the purchase of your dumpster.

In this article, you’ll learn more about this business venture to eventually see if it could be your most appropriate entrepreneurial move.

Dumpster Rental Business Overview

The dumpster rental business is not new; dumpsters are found everywhere- in parking lots and driveways, on the streets, in commercial buildings, and in residential areas. It’s quite a simple idea: The customer pays a set fee for the dumpster for temporary or long-term use. They keep it for a set period of time, and then you pick the dumpster and handle the transportation and dumping of the waste.

Dumpster rental companies rent various sizes of dumpsters to customers, both residential and commercial. They deliver the dumpsters to precise locations and collect them after a specific period of time. Although most companies incorporate waste management solutions, the industry doesn’t incorporate waste disposal’s generated revenue.

The target market cuts across anyone with significant needs for garbage disposal. It requires minimal investment in terms of time and resources. Apart from dumpster deliveries and customer phone calls, you don’t have to be available on the working site all the time.

Here is a good video that breaks down the pros and cons of starting a dumpster rental business

Dumpster Rental Business Industry trends

The performance of the dumpster rental industry is greatly influenced by consumer spending. As economic growth increases, it drives more activities that generate waste products, which is the basis of the business.

The good news is that this industry has registered great performance for the past few years. Between 2014 and 2019, it experienced annual growth of 2.3%. Talking of 2019 alone, the employment rate was at 4,579, with 262 operating businesses. 

The incorporation of digital services is a new trend in the industry that has really improved customer’s experiences. They can search dumpster rental firms online, read reviews, compare prices, and settle for the company that suits their needs.

What it takes to run a dumpster rental business

While it doesn’t require a degree in business management to operate a dumpster rental business, there are certain skills and expertise that can enhance your success. These include Commercial Driver’s License, customer service skills, attention to detail, marketing skills, and organization skills. 

The initial cost of starting the business mainly depends on the truck and dumpsters you intend to purchase. The cost of a dumpster ranges from $1000 to $6000 according to the size.  A Truck Trailer is priced at $60,000 to $100,000. Other factors that influence the initial cost include a website, working uniforms, and signage for the dumpsters and truck. Generally, a business with 10 dumpsters and a truck can earn up to $3,630 per week minus the general expenses.

How do you start a dumpster rental business?

Just as is the case with other businesses, it’s important to have a good plan as you start. Of course, you must know things and things you must do for your business to triumph.  Let’s go through the steps when it comes to venturing into the dumpster rental business.

1. Make a business plan.

After envisioning the idea, the next step should be writing a business plan. Starting a business with a well-conceptualized plan increases the chances of success.

2. Create a business entity

A business entity entails the legal structuring of business operations. LLC, sole proprietorship, corporation, and partnership are the four primary types of business entities to choose from.

3. Decide on your location.

Though dumpsters stay at the customer’s seat most of the time, it’s necessary to have a place where they’re stored when not in use. While remote locations cost a bit less, locations closer to urban areas save time and energy when it comes to deliveries.

4. Acquire business permits and licenses 

On top of a CDL for truck drivers, a dumpster rental business might also need some general registration such as tax permit, occupancy permit, and Employer Identification Number.

5. Get the funding

It’s one thing to have a business idea and another to find the required financing. Sources of financing include loans, savings, or sponsorship.

6. Make your marketing plan.

It’s important to have well-established marketing campaign plans and know your competitors before initiating the business. In addition, the cost of marketing depends on the kind of marketing, such as print advertising or online advertising. 

7. Get insurance

With an insurance policy, a business is assured of getting compensation in case of a tragedy that leads to a worker’s loss of property or injury. A dumpster business needs many insurances such as commercial property insurance, general liability insurance, worker’s compensation insurance, and commercial automobile insurance.

8. Hire employees

The next important step is to take on employees to handle various tasks associated with the business. For example, a dumpster business truck driver earns approximately $17.11 per hour. While a few employees may manage all the work initially, consider adding more workers as the business expands. 

dumpster rental business


What Are the Benefits of Dumpster Rental?

Many homeowners find themselves in need of renting a dumpster because they want to remodel their homes. Some of the projects that usually need a dumpster rental include bathroom remodeling, kitchen remodeling, basement finishing, and roof structure repairs.

With the help of these dumpsters, homeowners will be able to stay clear of having to resort to local junk disposal services, which can charge for every trip they make while hauling away your junk. By renting the dumpsters for your home projects, you will also be able to keep them safe from excess junk and debris, as well as having to worry about how it is going to be thrown away or stored.

In addition, some companies help ensure a clean environment by offering recycling centers to minimize the number of trash thrown away in dumps. This is done by recycling construction waste and household junk, and other debris so that it does not get accumulated in the environment around the globe.

Throughout a renovation project, there are different types of waste generated by contractors and sub-contractors, such as demo materials, dirt from floors, damaged fixtures, and pillars. By renting a dumpster for your home project, homeowners will be able to get rid of all these unwanted materials efficiently without worrying about the methods of disposing of them.

In addition, some companies offer areas for customers to place their own junk in containers for their own personal use but do not have any trash trucks or disposal.

How much does it cost to purchase a dumpster?

There are several different size dumpster options that you can choose from with some as little as around $500 all the way up to over $100,000 to buy. 

How much does it cost to start a dumpster business?

You can find a used dumpster trailer for around $5000-$20,000 and build your business slowly depending on your cash flow and savings situation.

How profitable is a dumpster rental business?

Dumpster rental business insurance will cost you around $3000 a year and then you will have to factor in things like storage and if you have a truck to tow the dumpster. If you have a big property and already have a truck your profit margins are going to be much higher than someone who would have to rent space at an outdoor storage yard or facility. From there you will have to calculate how many clients you will have compared to your operating expenses like fuel and labor costs. 

How much does it cost to rent a dumpster?

According to Homeguide, the cost to rent a dumpster is broken down into the following average cost per size per week/;

  • 10 yard container: $200-$600
  • 15 yard container: $260-$650
  • 20 Yard container $300-$700
  • 30 Yard Container $300-$715
  • 40 Yard Container $350-$800


Just like any other business, it takes some effort to start a dumpster business. But although you may struggle as you start, you eventually overcome the struggle as the business picks. It’s good to give your business enough time to grow as you give your best. Everything will be paid off when success starts to triple in. Good research and planning before venturing into the business will put you in a better position to provide excellent services; you can stay one step ahead of your competitors.