|Is Renting Right for Me?
When a home improvement project requires equipment not in your toolbox or garage, what do you do?
Traditionally most people would run to the local hardware store and purchase whatever it is they were lacking. Although this still may be a good option given you particular situation, more and more homeowners and contractors are turning to the rental industry for help. The American Rental Association has identified six reasons why renting may be a better option for you.
- Maintenance – Rental equipment includes full maintenance. There is no need for spare parts, a workshop or the time required to perform the much-needed work.
- Breakdown – If your equipment breaks down you could be out of work for days or weeks. If a breakdown occurs with a piece of rental equipment, simply return it and get a new one. This saves time and money.
- Obsolescence – Rental shops typically carry the latest equipment. A lighter more efficient tool that can save you time and money can replace a larger bulky outdated piece of equipment.
- Correct equipment for the job – Are you using the right equipment for the job?
- Ownership might force you to use a tool that is the wrong size or type for the job, causing additional,
though hidden, costs.
- Conservation of Capital – Renting frees capital for other equipment that potentially is more
- Increases borrowing capacity – The equipment user who rents rather than buys generally finds borrowing easier because the business has a better ratio of assets to liabilities, as the equipment does not appear as a liability on the balance sheet.
- Tax Implications – Do you want to depreciate a piece of equipment or expense the rental. Talk to your tax professional to see what option is best for you.
In the end, simply ask yourself, is this a piece of equipment that I will need on a regular basis and am prepared to keep it in good working order to reduce down time. If not, maybe renting is right for you.