Stop paying for your equipment when you are no longer using it.
If your construction project needs specific equipment for a short amount of time only, that equipment is likely to sit around for ages afterwards if you buy it. Let the rental company worry about finding other users.
Get up-to-date technology.
The rental market is competitive and incentivizes rental companies to offer recent equipment that gets jobs done faster and more efficiently. Up-to-date equipment usually also means compliance with emissions regulations.
Avoid maintenance costs.
Many rental contracts make provision for maintenance (including record-keeping), repairs and spare parts. Check the contract before signing to see what is included. Remember that you may also make further savings by not having to hire or train your own in-house specialists.
Stop storage costs.
Construction equipment can only withstand so much time outside. Storage facilities to keep bigger pieces of equipment tucked away when they are out of use can be a major expense. This is another worry you can simply hand off to the rental company.
Cut transport costs.
If your equipment is on the East Coast, but your project is on the West Coast, the cost to move your machines could make a sizeable dent in your profitability. It may make more sense to rent the construction equipment you need from a rental company near your project site and say goodbye to transport costs.
Pursue new opportunities.
Some projects require specialty equipment if they are to be done right. Buying the equipment may not be fiscally viable. On the other hand, renting can let you expand your project horizons while staying profitable.
Cut opportunity costs.
If you buy instead of rent, you use up capital which is then no longer available for other projects. That can cost you job opportunities you would have liked to pursue. You can keep your options open by renting instead of buying.
Make direct tax deductions.
Rental costs are often immediately deductible as business expenses. Purchases of construction equipment on the other hand often need to be depreciated over the lifetime of the equipment.
Improve your balance sheet.
Your financial department will love the fact that rental expenses are not considered to be a balance sheet liability. Among other things, you preserve more of your company’s borrowing power.
Renting construction equipment also lets you try before you buy. You avoid the risk of a large investment into equipment that turns out to be unsuitable.
Interested in renting construction equipment? Check out Lendr, a new upcoming service that allows you to easily search through rental construction equipment and choose the best option for you based on price & location.