Hi,
If you are planning on doing this properly, then you need to consider a few things. I hire out equipment, and it can work well, but equally there can be a few pitfalls. Here are a few things to consider:-
(1) Firstly, your hire business has to recoup it's original outlay for the purchase of the equipment. Most new business work on a business plan, hoping to get their initial start up investment back within a year to 18 months of trading. Consider whether you are going to Hire out cheaper equipment, or go for "names" such as Vestax, JBL, Technics, QSC etc. Buying the named brands will cost you big $$$'s but you will be able to charge more for the hire fee. However, find out what your local area would require, if a customer only wants to pay $50 hire, then your $300 rig will never be out, so you would be better buying cheap, and offering low(er) hire fees.
(2) Nobody wants their equipment damaged by the hirer, but it happens. Equipment insurance for hiring purposes is expensive but worth considering if your customers are left alone with $5000 of hire rig. Also take a deposit to cover for minor damages, this is usually the excess charged by your insurer. I charge a £50 deposit for single items or £100 for a complete rig. This is the excess levied on me by my own insurer should they Ahem....not bring it back and I have to claim.
(3) Security, never trust your customers, you have to cover yourself against the potential theft of your gear whilst out on hire. I mark all of my hire gear with my postal (zip) code in UV pen. Always insist on seeing 2 or 3 forms of ID at the time they collect the equipment:- Passport, Drivers Licence and a recent utility bill. If they don't produce ID they don't hire!. If you are going to go about this in a big way, then consider paying $50 for a good quality CCTV camera, and connect it to a vcr. This is a good deterant since you have a picture of the hirer to pass to the police. Also make a note of the vehicle registration plate of the vehicle they arrive in
(4) Make sure your equipment is checked and serviced. Hire equipment is often abused by hirers. I'm not sure of the law in the U.S, but in the UK we have to PAT Safety test every piece of hire equipment before it goes out. If this applies in the U.S then invest in your own PAT test unit and keep records of the tests carried out. Check your local laws with regard to this, since it does vary from country to country.
(5) Have a good hire agreement. Make sure that it is made clear that the hirer (and not you) is responsible "For the correct and proper use of the hire equipment". Also include a clause that holds the hirer responsible for any damage or liability to persons or property when using the hire equipment. If you intend on delivering and setting up the equipment yourself, or hiring yourself as a "Sound Tech" then make sure that you have liability insurance. Set out your contract, so that you are covered from all angles, and detail the hirers responsibilities and situations in which the deposit will be forfeit.
Good Luck