Steps to start a bounce house rental business

People might think starting a bounce house rental business is a piece of cake—just buy a few inflatables and start making money. Well, not really.

While it's a fun and profitable business, it requires careful planning and execution.

But don't worry. We have broken down the process for you into clear, actionable steps, like slicing a cheesecake (smooth and easy).

So, let's dive straight in!

How profitable is the bounce house rental business?

Profitability is all you want to know, right?

Well, it depends on several factors. Let's imagine a fake scenario to know how profitable your bounce house rental business can be.

1. Number of rentals - If you own 3-5 bounce houses and rent each out for $150-$300 per event, you could generate $1,500-$3,000 per weekend.
2. Seasonality - Demand spikes during summer and weekends, meaning you can maximize earnings with proper scheduling.
3. Additional services - Upselling party packages (tables, chairs, concession stands) let you make more money.
4. Competition & location - If you're in a high-demand area with fewer competitors, you are with luck.
5. Operational costs - Expenses like storage, maintenance, insurance, and transportation eat up your net profit. Anyway, you can't avoid this.

Long story short, with the right approach, your bounce house rental business can generate anywhere from $50,000 to $150,000 annually, depending on your scale.

Start with a market research

1. How often are parties conducted?

To estimate your potential customer base, research how frequently different parties occur in your area.

Reach out to local families and event planners to gather insights on how frequently they host or attend events that include inflatables, such as bounce houses.

This will help you gauge the demand for bounce house rentals in your community.

2. Knowing the demand for different inflatables

Not all bounce houses are equally popular and each is rented for different purposes. Some attract more bookings than others.

That's why, before purchasing, know the demand for each bounce house to prevent unnecessary investment.

Types of bounce houses & their use cases,

• Standard bounce houses - Best for birthdays & small gatherings.
• Combo inflatables (Bounce + slide) - Popular for larger parties.
• Obstacle courses - Schools and corporate events love them.
• Water slides - Huge hit in warm climates.
• Themed inflatables - Licensed characters (e.g., superheroes, princesses) attract more rentals.

3. Analyzing the competition

Don't rush into starting your bounce house rental business just yet.

There's a major risk if you skip a crucial step: analyzing the competition.

Not sure how? Start simple—run a Google search for "bounce house rental near me." This will give you a list of competitors in your area.

Now, the real work begins.

Once you've identified your competitors, analyze their strategies and compare their pricing.

The goal is to stand out, not blend in.

Make sure your business offers something better, different, or more convenient. That's how you win customers!

Equipment to purchase

Starting a bounce house rental business requires a significant investment—yes, you heard that right!

The cost of a single bounce house ranges from $1,000 to $5,000, depending on size, design, and quality.

But that's just the beginning. To run a successful rental business, you'll need additional equipment too.

1. Basic bounce house ($1,000-2,500)

It is the most common type of inflatable used for kids' parties and small gatherings.

These are typically small to medium-sized, featuring an enclosed jumping area with mesh sides for safety and visibility.

They come in various colors and themes.

Since they are lightweight and easy to transport, they're ideal for first-time business owners.

2. Combo bounce house + slide ($2,500-5,000)

An upgraded version of a basic bounce house, featuring an attached slide, climbing wall, or basketball hoop.

Suitable for customers looking for multiple activities in one inflatable, though, it is popular for birthday parties and school events.

3. Water slide ($3,000-6,000)

A must-have for summer events, water slides come in single-lane or multi-lane designs, often featuring splash pools at the bottom.

These rentals command premium rates due to their seasonal demand and water access requirements.

4. Obstacle course ($3,500-8,000)

Imagine a large inflatable designed for competitions and school activities—right, you are picturing an obstacle course.

It features tunnels, climbing walls, slides, and other challenging elements.

Due to their size and complexity, it require a larger setup area and more manpower. But from the renting perspective, it can be rented for higher rates.

Other essential equipment

Besides these inflatables and bounce houses, your business needs other equipment to ensure proper setup and transportation.

Here they are,

• Blowers - $150-$400 each (Used to keep the inflatables inflated during use)
• Anchors/stakes - $50 per set (Secures the inflatable to the ground for stability)
• Tarps & mats - $50-$150 (Protects the bounce house from dirt and sharp objects)
• Extension cords - $50+ (Heavy-duty cords to connect blowers to power sources)
• Storage & transportation (Truck/SUV/trailer) - $2,000-$10,000 (Needed to transport large inflatables to event locations).

Protect your business with insurance

Insurance is a must for every business, including your bounce house rental business.

While renting inflatables seems like all fun and games, the reality is different.

Accidents, injuries, and property damage can happen, leading to financial loss or even business closure.

Feeling worried? Don't be.

The right insurance coverage can protect you and keep your business running smoothly.

Here's a breakdown of the essential insurance types and what they cover.

1. General liability insurance

This is the most common insurance for a bounce house rental business.

It protects your customers if they get injured or experience property damage while using your rental equipment.

While these incidents may seem unlikely, being prepared is essential.

Coverage

• Injuries
• Property damage
• Legal fees
• Product liability

Cost

Typically ranges from $1,000 to $3,000 per year.

2. Equipment insurance

Bounce houses and related equipment are expensive, and repairs or replacements can be costly. Equipment insurance safeguards your investment from unexpected losses.

Coverage

• Accidental damage
• Theft or vandalism
• Weather-related damage

Cost

• Usually costs $500 to $1,500 per year, depending on the value of your equipment and location.

3. Worker compensation insurance

If you have employees, this insurance is legally required in most states. It ensures your team is protected in case of work-related injuries.

Coverage

• Medical bills
• Lost wages
• Legal protection

Cost

The cost varies by state, number of employees, and risk factors but typically ranges from $500 to $2,500 per year.

4. Commercial auto insurance

If you use a vehicle to transport bounce houses, commercial auto insurance covers accidents, vehicle damage, and liability claims.

Cost

• Costs range from $1,000 to $3,000 per year, depending on vehicle type, coverage limits, and location.

Starting out, insurance costs may feel like a big expense, but it's essential to safeguard your business.

How equipment rental software helps

Starting a bounce house rental business isn't as simple as buying an inflatable, renting it out, and making money.

In reality, it involves much more.

You need to purchase equipment, arrange proper storage, market your business, handle inquiries, process orders, deliver and set up inflatables, manage customers and employees, deal with cancellations, track inventory, and handle an increasing number of orders—all while ensuring smooth operations.

Now, imagine having software to streamline these processes.

Instead of juggling everything manually, a well-designed system can automate key tasks and improve efficiency.

1. Receiving inquiries

With rental software, you get a dedicated store website where customers can browse available bounce houses, check details, and submit rental inquiries.

This eliminates the need for managing multiple calls or repeatedly explaining rental rates.

Simply list your inventory with descriptions and availability, and let the software handle the rest.

2. Inventory management

Keep track of your bounce houses in real-time, all in one place.

Whether an inflatable is out for rental, being returned, damaged, or missing, the software helps you monitor its status.

This prevents overbooking and ensures better inventory control.

3. Manage customers

Strong customer relationships are key to business growth, but managing them manually is challenging.

With rental software, you can store customer data, track rental history, send emails, and provide a smooth experience for them.

Marketing strategies to get started with

In your mind, you've already completed all the steps to launch your bounce house rental business. But here’s the catch: customers won’t magically find you.

They need to know you exist first.

So, how do you get the word out?

The answer is marketing.

Marketing can be categorized into two folds: traditional marketing (flyers, networking, local sponsorships) and digital marketing (online advertising, SEO, and social media).

But which approach is right for your business? The key is to figure out where your customers are looking when they need your services.

Today, Google is the go-to platform for finding local businesses. When someone searches for terms like “bounce house rental near me”, Google displays recommendations on Maps and through business websites.

To ensure your business shows up in these searches, you need to focus on three critical areas:

• SEO (Search Engine Optimization)
• Google Business Profile
• Paid Advertising

Let's break these down one by one.

Search engine optimization (SEO)

SEO (Search Engine Optimization) is the process of optimizing your website to rank higher in Google search results.

Not sure where to start? Check out this SEO guide for rental businesses to help you get started.

Google Business Profile

Google Business Profile (formerly Google My Business) is a free tool that allows you to list your bounce house rental business on Google Maps and local searches.

How to set up Google Business Profile

1. Go to Google Business Profile and create a free account.
2. Fill out your business name, address, and phone number (NAP details).
3. Upload high-quality photos of your bounce houses.
4. Ask satisfied customers to leave Google reviews (higher ratings = more bookings).
5. Keep your business hours and contact details updated.

Want more detailed resources? Read our Google Business Profile for rental business.

If you have optimized your business profile on this, you can drive tons of local traffic and bookings without spending money on ads.

By optimizing your profile, you can drive significant local traffic and bookings without spending a dime on ads.

While SEO delivers long-term results, it takes time to see noticeable outcomes. If you're looking for quicker results, consider investing in Google Ads. However, keep in mind that this requires a budget.

Before diving into your bounce house rental business, take the time to do thorough research. It's a safer bet for long-term success.

Additionally, try reaching out to other bounce house rental businesses for insights. Real-world advice from experienced owners can be far more valuable than any guide.

Wishing you the best of luck on your entrepreneurial journey!