What is the largest expense category typically found in a rental branch?

In a rental branch, personnel expenses typically represent the largest expense category, which includes wages, benefits, training, and other associated costs for employees. The success of a rental business heavily relies on its workforce, as employees are essential for tasks such as customer service, vehicle maintenance, and administrative support.

While fleet acquisition costs and maintenance costs are significant, they are considered more variable and dependent on the size of the fleet and how often units need replacement or repair. Insurance premiums, though necessary, generally do not surpass the cumulative costs associated with personnel. Therefore, understanding that personnel expenses encompass salaries, benefits, and the costs of recruiting and training staff helps clarify why this category stands out as the most substantial expense in the operational budget of a rental branch.