@soggy thanks for those tips, have actually taken those into account , What i am interested is whether this venture can take off good ... keeping fingers crossed
who are you targeting? Renting toys makes most sense for lower-middle and middle class families as it helps them the most, However, you will have to price the service extremely reasonably, which will not give you too much of a margin, so you will have to compensate by volume which will make your business totally dependent on inflation and the general state of the economy.
You could also target yuppies / upper-middle class with premium toys that they could probably afford, but may be too extravagant to justify buying. This would allow premium pricing/good margins but low (comparatively) volumes and some degree of isolation from "common people woes".
I think you may be able to get both groups to indulge in your store, but your success/failure will entirely depend on how the customers treat the toys and return them (leading to cost and in turn rent escalations).
Some other suggestions that you probably already have thought of but I will mention anyway - keep a large play area in your store where member parents & kids can play with the toys free of cost and maybe socialize a little with other kids too, your CSR could be an old toy buyback program (which you could then donate to a charity/orphanage), you should be able to get a tax break out of that.