As Lakeland construction attorneys, we are well aware of the financial constraints that construction professionals can find themselves in especially if they operate a smaller business. There are numerous expenses to keep track of and equipment is one such expense—especially heavy equipment. According to the American Rental Association, equipment rentals projected to grow at a rate of 4.6 percent annually. Renting your equipment might be a cost-effective solution for keeping your business expenses under control. We will share some of the benefits of renting equipment in this article, and in part two, we will discuss the challenges of renting equipment. Part three will focus on finding and evaluating a rental partner.
Benefits of Renting Construction Equipment
There will always be a need for companies to purchase equipment. However, renting equipment has grown in popularity for a variety of reasons.
Better Cash Flow: The cost of purchasing equipment is rising, so if your cash flow is tight, renting equipment can give you the versatility you need without having to deal with the responsibilities that come with owning your own equipment. Instead of breaking your budget to pay the upfront costs of new equipment, you have more power over how you allocate the rest of your money.
Avoid Depreciation: Like a car purchased equipment depreciates. If you plan to resell your equipment, you must invest in its upkeep and maximize its usage in order to recover the cost of your investment.
Lowered Maintenance and Repair Costs: Rental equipment is already reliable and well maintained. Equipment must be maintained for efficient business operations and meet OSHA safety standards. Failing to do so could lead to the need for a Lakeland construction lawyer. When you own the equipment, you have to factor in the cost of maintaining that equipment for its entire life cycle whereas when you rent, you only have to maintain it temporarily.
Try Before You Buy: Get a true picture of an equipment’s benefits and features first before you make the investment.
No Long-Term Storage Concerns: Owning equipment requires well thought out storage solutions. The need for storage increases expenses because equipment has to be stored properly to avoid equipment deterioration which could cause the equipment to depreciate at a much faster rate.
Fewer Transportation Issues: It is common for companies to have multiple projects in progress at the same time. When you own equipment, transportation logistics can impede production. Renting cuts down the delay since the pieces you rent will be kept at the specific construction site where they are needed.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.