Is It Better to Rent Equipment or Buy It?

Why should a company, independent contractor or individual rent equipment rather than buy it? Renting equipment has many benefits for:

  • Companies wanting to keep their asset value low for tax and other reasons
  • Smaller building and maintenance contractors
  • Wedding and event planners
  • Gardeners and landscapers
  • Caterers

Here are some of the benefits:

  • Only pay for the equipment as and when you need it. Rental fees can be included in customer quotes. Thus, it becomes a variable, per-job expense rather than a fixed one.
  • Minimal capital required. For a service business starting out, it is possible to take on fairly large projects without needing huge amounts of capital for equipment purchase.
  • Reduced risk. Because the equipment is owned by someone else, they carry a large part of the risk and are generally responsible for the maintenance, insurance, etc.
  • Reduced space requirement. Equipment does not need to be stored in between uses and in many cases can be delivered straight to, and collected from, the site where it will be used.