Asset Management Solutions: Renting vs Buying Equipment

December 15, 2014
1 min

It can be cost effective to rent certain equipment rather than buying it. There are many variables in this equation so hopefully we can share some of the pros and cons of renting versus buying equipment for your facility.



Equipment Type and Cost

One of the integral factors in renting versus buying maintenance facility equipment is the question of what type of equipment it is and how much it costs. For example, if you run a landscaping maintenance facility need a specific type of equipment for a job yet it's something you don't typically use on a regular basis, there is no reason to buy one when you can rent it. Perhaps it's a backhoe or a jackhammer that is much cheaper to rent than to buy and use just once in a while or even once.

How Often You Need It

This brings us to how often you'll use the equipment. If it is a piece of equipment that is only used in the spring or summer or it's something you need for one specific job, it may not be cost effective to own the equipment and have to maintain it as well. While renting can be more expensive in the long run, it all depends on if you have the need for the equipment on a regular basis.


Storage is another factor in renting your equipment versus buying your equipment. A few questions to ask yourself is, “Do you have the room for a large piece of equipment,” or “Do you want the equipment being used when you're not there?” Storing equipment can cause issues with theft or misuse as well as simply not having the room in the first place.


Keep in mind that if you do rent equipment that you know the terms of the rental – to a tee. Make sure you ask questions, read the entire contract, and know what the fines or fees are for circumstances beyond your control. Also know what all comes with the equipment: Do you have to pay extra for attachments or accessories? Does your larger equipment include the delivery cost or cost of a trailer?


Also Read: Record Keeping Made Easy


If you do store large Maintenance Facility equipment, one way to keep up with everything you have and see the costs of maintaining it is with Asset Management Solutions software.


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