How to Start a Clothing Rental Store

A clothing rental store is a store which purchases expensive clothes such as suits, tuxedos and formal dresses and lends then out for hire. These clothes are usually rented for special occasions and allows consumers to save money from purchasing items they may only wear once.   

Starting your clothing rental store  

Keep in mind, before you can legally provide a clothing rental service you will first need to register for an Australian Business Number (ABN). An ABN allows you to be identified by and interact with other businesses. It is also a necessary requirement by the government for tax and administration purposes before you start trading.   

Picking the right type of business structure for you and your business is crucial. This will determine the licenses you require, the tax you will pay and how much control you have over the business. There are many types of business structures within Australia whether you’re by yourself as a sole trader or engaged in a partnership with a business partner. Talking to a business lawyer is a great way to ensure you pick the best structure that suits your business.  It’s also important to properly take care of how your business is structured before you start.  

Additionally, finding a name and most importantly a logo will help define your business within the industry. Protecting this is vital so registering your business name and trademarking your logo is something every business owner needs to do. 


Now finding the right site is an exciting first step for any business owner. It’s a good idea to establish a relationship with a real estate agent in your area. Sign up to as many real estate emailing lists that you can and visit as many sites as possible. The site you choose is ultimately where you will be working. It’ll determine the type of customer your business will attract and the level of foot traffic passing by. 

That’s why having your own physical shop inside a local shopping plaza or somewhere with heavy foot traffic is advisable.  This ensures you get maximum exposure and allows your business to expand through word of mouth.  Your shop can be used for as a drop off and pick up point for your customers clothes rental needs. Also, it will ensure customers can come inside and try on items of clothing they may want to hire.  

Also, understand that having an online presence is also valuable. Consumers will sometimes go online first to find where the nearest clothing rental store is located. Building a strong website and sustaining good reviews is always recommended. You may want to consider offering an online service such as  

Picking your range 

Picking the right range making sure you select the right types of clothes is important. The pieces you select for your range must be in season and must target the age and styles of your market. For example, formal style suits for high school students will be different to more formal black tie events. Conducting some research into current fashion trends is therefore necessary before picking your range. Also, stocking and selling accessories such as ties or bow ties is also an idea and something the store can be used for. 


Starting your own business is an exciting time. Consumers are keeping their options open and looking to rental stores for big ticket items to rent. So make sure to research your market and secondly, pick the right location that suits your business.

You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions


Register for our free live webinar today!

Tax Strategies for Small Business Success

12:00pm AEDT
Thursday 25th July 2024

By clicking on 'Register for webinar' you are agreeing to the Lawpath Terms & Conditions

You may also like

The 2024 Federal Budget has unveiled a comprehensive package of measures designed to support small to medium enterprises (SMEs) in Australia, while also laying the groundwork for a "Future Made in Australia."
Default interest clauses can help protect lenders' interests, but sometimes they will not be enforceable. Find out more here.
Lying on your resume to get a job is never a good idea. In fact obtaining employment through fraud can actually land you in jail.

Thank you!

Your registration is confirmed. Keep an eye on your inbox for an email with details on how to watch the webinar.